mortgage

Financial literacy is a vital part of navigating today’s complex financial world. However, despite the importance of financial literacy, certain socio-economic groups have been consistently left out when it comes to receiving financial advice. Low income clients are a major group which have traditionally been excluded from the advice process. This is partly due to barriers such as cost and access to affordable advice, but also due to issues such as an industry focus on high-net-worth clients.

How much should parents prepare for a child to go to school?  Australian Scholarships Group (ASG), a not-for-profit friendly society , published a report saying future schooling including kindergarten for kids born in 2012, will be  $428,723 at independent schools, $212,920 at Catholic schools and $65,829 at public schools,  The scary part is that the national survey suggested private schooling costs will grow by 25% in the next 5 years and public schools by 12.5%

Mortgage Insurance or Lenders' Mortgage Insurance (also referred to as LMI) is the insurance that a lender takes out in case you, the borrower,  default and they have to sell your property used as a collateral.  

Mortgage insurance is based on a projected shortfall between the debt amount and what lenders think they could get for your property. Mortgage insurance can also be capitalised into the loan. Mortgage brokers usually cannot apply for mortgage insurance contracts.  

In order to borrow, the following are required:

• Last 2 consecutive pay slips – all applicants

• Last 2 years tax returns – Personal

• Last 2 years company tax returns, P&I and balance sheets – Self Employed

• Last 2 years group certificates

• Last 2 years Tax Assessment Notices

• Letter of employment: date started, job description, employment status, base wage, YTD earnings

• 6 months current home loan statements – all loans

This part explains the steps required to allow a SMSF to purchase real estate and borrow. The process is represented diagrammatically at the end of this part.

1. Establish/review the SMSF

(a) The Trust Deed establishing the SMSF must give the Superannuation Fund Trustee power to:

• Purchase real estate,

• Borrow money, and

• Mortgage property to secure repayment of that borrowing.

How does my SMSF purchase a property?

The SMSF chooses the property it wishes to invest in, in the ordinary way. Residential property must be purchased from an arm's length vendor. Non-residential property can be purchased for full value from "related vendors" so long as the property is let for business purposes.

The Contract for Sale to purchase the property must be entered into in the name of the Property Trustee (as owner of the legal interest in the property).

Financial Theory (ECON 251) - Dynamic Present Value

You should understand the advantages and limitations that may impact your investment strategy as a result of your age group. Select your age group from the following list.

Here are some simple steps you can take to increase your financial security.  Meeting minimum debt repayments may be tough in a recession or when you face a personal financial emergency.

It’s quite common to get “financially lazy” or complacent during good times. If your income meets or exceeds your typical expenses, it’s easy to stop thinking about what you spend your money on.

Your first step should be to take get a handle on your finances: Income, debt, payments/expenses, discretionary spending, etc.  Unless you know where you’re starting from, you will not be able to rational, logic-based decisions. You should review and understand the following: