I don’t understand how mortgages, loans and interest rates work
At the Wealth Centre our Finance Broking team can explain to you in plain English the processes involved in lending. We take our time to learn about you and your situation and ensure that you fully understand where you are and where you want to be and how our products and services can help you. Many of our clients don’t want to do the negotiating with the banks and that’s why they come to us to do it for them.
What fees and charges should I consider when purchasing property?
When you buy a property, the additional costs include establishment fees, solicitor fees and stamp duty. As these costs can add up to several thousand dollars, instead of paying the outright you can able to add them to the amount you need to borrow. To find out how you can minimise the effect of your property purchase to your cash-flow please contact The Wealth Centre’s for your free consolation.
What is the difference between fixed and variable rate loans?
Fixed rate loans is where the interest rate of the loan stays a determined fixed rate for the deration of an agreed upon time, meaning your monthly payment are the same every month. In most instances additional loan repayments are limited, offset facilities may not be available and break costs/penalties can apply for paying out or closing a fixed rate before the duration of the fixed term.
Variable rate loans are flexible and can change, this means that your payment can increase or decrease in line with the official cash rates. These loans are equipped with full repayment flexibility, redraw facilities for advance payments made, mortgage offset facilities and the ability to discharge or pay them out without incurring any penalties.
Why should I use a mortgage broker?
A mortgage broker is finance professional who is able to acquire finance for a client. They work for the client, not the banks. Our mortgage brokers spends quality time with our clients to understand their situation and requirements. They have the expertise and detailed knowledge of lending criteria combined with access to a large number of lending products to be able to ensure that the products they offer are personally tailored to our client’s needs, goals and strategy.
How much do your mortgage broking services cost?
For all loans and mortgages we do not charge a fee as we are compensated by the lender for our services – both on an upfront commission and a trail commission basis.
Why invest in property?
Investment properties can enhance a long term wealth building strategy. In Australia historically house prices double every 7-10 years, creating wealth in equity for the home owner. You may have already invested in property, without thinking about it by purchasing your first home, you can then leverage from the equity in your home to purchase further investments to increase your wealth. We can help you secure the right investment property to suit your wealth building strategy.
Why use a Property Strategist to purchase investment property?
Our Property Strategist has years of experience and in-depth knowledge of how the property markets work in Australia. They understands Australia’s property cycle and are able to research, source, assess and negotiate the purchase of the right investment properties for your financial strategy.
A Property Strategist will take the time to understand where you are and where you want to be and how developing a long-term property strategy which will include purchasing costs, ongoing expenses, tax benefits and potential returns. They will also show you a selection of potential properties that suit your strategy for you to choice from.
How much do your property investing services cost?
We don’t charge you for our property investing service, we get a commission from the property developers.
What is financial planning?
Financial planning is about understanding where you are on your life’s journey and your financial goals and creating a strategy to help you achieve those Goals. Our Financial Planner are qualified experts in their field and they take the time to understand where you are and where you want to be. Helping you to build and protect your wealth through investments, superannuation, life and trauma insurance and income protection insurance. They will offer you the right solutions for your financial and lifestyle needs for both now and in the future.
Can I purchase property through Superannuation?
Yes, if you have a combined total (for you and your spouse) of approximately $150,000 in all your superannuation’s funds then you could purchase property, but only through a Self-Managed Superannuation fund (SMSF). A SMSF is, a superannuation fund run by its member or members and is not externally managed. A SMSF is set up for you by a Financial Planner and Accountant, who will be able to advise if this is the best strategy for you.
What is Income Protection Insurance?
Income Protection is a monthly benefit that pays you up to 75% of your income and covers you for accidents, illnesses or major traumas. It pays you up until you return to work (after your waiting period), if you can’t return, depending on your occupation, it will pay you up until the retirement age of 65. Income protection is tax deductible and is designed to ensure that you can continue to pay the mortgage, put food on the table and carry on financially until you return to work.
What is a Will and why do I need one?
A Will is a legal document that sets out who you want to receive your assets when you die. Making a Will is the only way you can ensure your assets will be distributed according to your wishes when you die. Studies show that at least 50% of Australians do not have a valid Will. If you die without a Will your estate will be distributed according to a pre-determined formula and, if your only living relatives are more distant than cousins, your estate will pass to the government.
Can I prepare my own Will or use a do-it-yourself Will kit?
Preparing your own Will is not advisable. A Will must conform to strict legal requirements otherwise the Courts may decide it is not valid. If this is the case your assets will be distributed according to a predetermined formula and not as you intended. Anyone who is not legally qualified risks making a mistake, creating uncertainty or losing opportunities for good estate planning if they make a Will for themselves.
The precise wording of a Will is a specialised and important legal task. The ordinary meaning of words is not necessarily the same as their legal meaning. Ambiguous wording is extremely common in home-made Wills and may result in substantial cost and delay in having the Supreme Court resolve the ambiguity.
A Will is an important legal document. It is therefore advisable to have your Will professionally drafted and ensure your wishes are properly recorded and carried out.
What happens if I die without a Will?
If you die without a Will, you die intestate. This means, as you didn’t have a Will, no-one knows who you wanted as your beneficiaries and who you wanted as your executor. Your assets will then be distributed according to a pre-determined formula with certain family members receiving a defined percentage of your assets despite what you may have wished.
Dying intestate can result in your surviving spouse, family and friends suffering unnecessary financial hardship and emotional stress. If you are in a de-facto or same sex relationship, it is necessary to supply sworn evidence that the relationship existed. If you die intestate and have no surviving relatives closer than cousins, the State Government will receive your estate.