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Hello,
The =
recent=20
federal election may have split the nations opinion, =
but it no=20
doubt brought the topic of economics and finance to =
the dinner=20
table. Few of us can argue about the prosperous state =
of the=20
economy and our first article outlines what this means =
for=20
those of us lucky enough to live, work and do business =
in=20
Australia.
If you own a home and are looking =
to save=20
on your mortgage, read on further to find out how you =
can use=20
speed as your secret weapon. Youll also find an =
article on the=20
First Home Owners Grant that explains which government =
benefits are available in your state.
Our =
final=20
article outlines how our role as your mortgage broker =
can=20
assist you with a much wider range of finance needs =
than you=20
might realise.
Enjoy this newsletter and feel =
free to=20
share it with family and friends.
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St Kilda Rd =
Towers
Level 4, 1=20
Queens Rd
Melbourne VIC 3004
| Tel: |
1300 667 694 |
| Fax: |
1300 667=20
=
594 | |
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A=20
Toast to the Economy |
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Benefits=20
for First Home Owners |
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Start=20
Saving on Your Mortgage |
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Benefiting=20
From A Single Point of Contact |
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![3D""=20](3D"http://www.powerport.com.au/images/nport_images/newsletter_images/=) |
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A Toast to the Economy
There's no better time to be living, working, investing =
or=20
building a business in Australia. Despite the rise in =
interest=20
rates, our economy is arguably at a 15-year high and remains =
on=20
track for continued strong growth.The recent change in=20
government demonstrates that we feel confident enough about =
the=20
economy to vote in a new team of economic managers. =
There's=20
every reason for this confidence: unemployment is at a =
32-year low,=20
the currency is strong, and there has been over a decade of=20
consistent 4% plus economic growth.
We enjoy =
interest rates=20
that are at historical lows and a standard of living that is =
higher=20
than all the G7 countries except the United States. Our =
nation's GDP=20
is valued at over $1 trillion, with a budget surplus in =
excess of=20
$17 billion.
What these statistics should mean to us =
as=20
individuals is that there are more opportunities to prosper =
and=20
build wealth than ever before.
The outlook for the =
future=20
remains positive. The International Monetary Fund predicts =
that=20
threats to the world economy like soaring oil prices and =
current=20
account imbalances will slow growth, not derail =
it.
In the=20
climate of this economic prosperity, it makes dollars and =
sense to=20
take advantage of financial opportunities. Remember that as =
your=20
broker, we are here to support and assist you when any =
funding needs=20
arise.=20
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Benefits for First Home Owners
The upfront costs of buying a home for the first time =
might seem=20
a little daunting, but fortunately there are a number of =
government=20
benefits that will help you reduce these costs.The =
First Home=20
Owner Grant is the most well-known of these. Since it was =
introduced=20
by the Federal Government on 1 July 2000, it has helped make =
home=20
ownership a more affordable dream for many. The grant =
entitles first=20
home buyers to a one-off payment of $7,000 which may be =
available at=20
settlement of your purchase. It is applicable =
Australia-wide,=20
whether you buy or build, and irrespective of your income or =
assets=20
provided the property is used as your principal place of=20
residence.
Lesser known are the other rebates and =
schemes the=20
states have introduced for additional support. In Victoria, =
for=20
example, first home buyers may be eligible for an additional =
payment=20
of $3,000-$5,000, known as the First Home Bonus. Victorians =
may end=20
up saving up to $12,000 off property purchase costs =
depending on the=20
value of your home and whether it is new or established. =
NSW=20
residents are also looked after, with generous government =
exemptions=20
on stamp duty under the First Home Plus Scheme, including=20
concessions for those building their dream home on a vacant =
block of=20
land.
Changes introduced to the First Home Plus =
scheme in=20
2007 may allow you to buy property with other partners and =
still=20
receive a concession, as well as receive an exemption from =
duty on=20
any advance you undertake to buy vacant residential=20
land.
South Australian residents are also treated to =
stamp=20
duty exemptions. There are exemptions for properties valued =
less=20
than $85,500 and concessions if between $85,501 and =
$250,000.=20
The jackpot of all stamp duty concessions is to be =
found in=20
Western Australia, where residents pay no duty if their home =
is=20
valued at less than $500,000, and concessions on duty for =
homes of=20
up to $600,000.
In the sunshine state, transfer duty =
concessions are available for home buyers, first home buyers =
and=20
buyers of vacant land who intend to build their first home =
on the=20
land. For those sharing a state with the leaders of the =
nation, in=20
the ACT, concessions are available for transfer duty, but =
you will=20
have to pass an income test on =
eligibility.
Tasmanians=20
haven't been forgotten - a concession applies to the =
purchase of=20
established dwellings with a purchase price of $350,000 or=20
less.
The conditions might sound a little =
complicated, but=20
the bottom line is that you can make significant savings on =
your=20
purchase costs by taking advantage of these government =
schemes. Give=20
us a call for help with applying for these grants. We are =
well=20
placed to know exactly what you are eligible to receive and =
how best=20
to iron out the red tape.
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Start Saving on Your Mortgage
Interested in wiping thousands off your mortgage bill =
and years=20
off your loan?It's an appealing prospect and the good =
news is=20
that most of us can achieve these savings simply by looking =
at ways=20
we can pay off our mortgage sooner.
Early repayments, =
extra=20
repayments and more frequent repayments are all effective =
ways of=20
lowering your interest bill and reducing the life of your =
loan=20
subject to the terms and conditions of your =
loan.
Every=20
little bit extra you can put on your home loan now, can save =
you=20
dollars in the long run. Even just switching to a weekly or=20
fortnightly repayment schedule can save hundreds or even =
thousands=20
of dollars by year end.
When it comes to the race to =
be=20
mortgage-free, it's the speedy hare not the slow tortoise =
that will=20
cross the finish line first! Here are some tips for speeding =
up your=20
home loan.
Tip 1 - Make more frequent =
repayments
Pay=20
fortnightly or weekly instead of monthly. Mortgage interest =
is=20
calculated on a daily basis so the more frequently you pay, =
the more=20
you will save, even if you are not actually paying any more =
than you=20
used to.
Tip 2 - Make additional payments
You =
mightn't have much spare cash floating around to make extra=20
repayments, but keep in mind that every bit helps, even if =
it's only=20
$10 a month. Every dollar you put on your repayment will =
reduce the=20
principal and therefore the interest payable next repayment. =
This=20
saving then compounds, making a significant impact over the =
life of=20
your loan.Tip 3 - Make early payments
The effect of =
this=20
compounding interest over time means that you'll maximise =
your cost=20
savings by making extra repayments early in the life of your =
loan.=20
Dollars paid into your mortgage early on - when most of your =
repayments go to pay off the interest - are especially good =
at=20
speeding up your home loan.
Other ways to pay off =
your=20
mortgage faster? Services like offset accounts, redraw =
facilities=20
and lines of credit are there to help you shorten the life =
of your=20
loan.
We can tell you more about these services, the =
terms=20
and conditions that apply and help you tailor a plan that =
will match=20
your mortgage and lifestyle requirements. You may be =
surprised at=20
the number of strategies you can use to help save on your =
mortgage.=20
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Benefiting From A Single Point of Contact
A single point of contact for your borrowing needs =
creates=20
benefits in terms of time, convenience, choice and =
trust.The=20
role we can play in meeting your borrowing needs is now =
being=20
extended to a much wider field than before.
Over =
recent=20
decades independent mortgage brokers and finance businesses =
such as=20
ours have changed the face of home loan lending in =
Australia. Twenty=20
years ago independent mortgage businesses were a factor in =
only a=20
small proportion of all mortgages arranged. Now they play a =
part in=20
a growing proportion of the market and this shows that =
brokers have=20
something real to offer.
Success has not been an =
accident=20
and the personal relationships between brokers and home =
buyers have=20
been an important element. The knowledge that the broker has =
access=20
to a wide range of products from a wide range of lenders has =
also=20
been important.
In the past you may have been happy =
with=20
your home loan or investment loan but when it came to the =
need to=20
purchase a motor vehicle, for example, you had to go off and =
find=20
another lender. Similarly if you had other borrowing needs =
such as=20
personal loans, commercial finance, factoring and other =
business=20
borrowing needs, you had to deal with a number of different =
people=20
to meet all these finance needs. With the changing =
situation, your=20
choice and convenience are both improved.
Rather =
than facing=20
the task of flicking through the yellow pages every time you =
have a=20
new borrowing need, it is more convenient to come to a =
person you=20
already know - and who already knows you.
Your =
choice is=20
boosted because our panel of lenders is increased to include =
companies that specialise in various other forms of finance. =
If the=20
financial product or service is not one we offer in house, =
we are=20
sure to have a trusted industry professional we can refer =
you to for=20
assistance.
One of the exciting things about our =
business is=20
seeing our clients grow and the privilege of growing with =
them. If=20
your financial needs are growing and becoming more =
sophisticated, it=20
might be an opportune time to contact us for a conversation =
about=20
this.
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Our Partners
Red Rock =
Mortgage=20
Group is a Full Corporate Member of the Finance Brokers =
Association=20
of Australia.
All members are bound by a strict code =
of=20
ethics to ensure the highest levels of service, integrity =
and=20
professionalism. |
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About Us
Red Rock =
Mortgages=20
specialise in mortgage finance for property Investors &=20
Developers. Whether you're a novice or an experienced =
investor=20
looking for a flexible finance solution to create wealth. =
Red Rock=20
offers a mortgage to suit your needs.
Our aim is to =
assist=20
investors in creating wealth through property by utilising=20
innovative and flexible mortgage finance solutions. =
Our=20
boutique approach, experience and expertise means you'll be =
able to=20
source the right finance facility to build a diverse =
property=20
portfolio. We not only look at investment finance =
strategically, but=20
also understand the needs and requirements for a successful =
property=20
investor.
Red Rock Mortgages provides you with =
choice &=20
flexibility from a diverse lender panel including the major =
banks=20
and other lenders. In addition our own unique range of =
lending=20
products can provide you with cutting edge innovation and =
additional=20
leverage where others cannot.
As investors and self =
employed=20
business people we understand the needs of self employed =
borrowers=20
and property investors. You can be assured of receiving =
expert=20
advice and prompt assistance, with the added comfort of =
knowing we=20
are both speaking the 'same language'.
For =
professional=20
intelligent finance advice, contact us today.
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Disclaimer: =
This=20
newsletter is intended to provide general news and =
information only.=20
Readers should rely on their own enquiries before making any =
decisions regarding their own interests. Please do not rely =
on any=20
part of this newsletter as a substitute for specific legal =
or=20
financial advice. All material is copyright 2007. =
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