answered
Q: Hi
I have two properties one i live in and a weekender. I cant receive my pension because of this.
Would i be better off selling both and buying one. Or could i transfer one over to my son and live in the other.
I am worried that I may never receive a pension if i make the wrong choice?
Regards
Mario
A: Hi Mario,
Your question is fairly complex, so I don't have any quick answers as there are a number of questions I have about your situation before deciding on best options. You really need to discuss your situation in more depth with a qualified planner so as they understand your entire situation to derive the best outcome for you.
I'm based in the Brisbane CBD but I'm happy to set up a phone call to discuss your situation with you sometime next week.
Stuart Christie
Financial Planner
07 3144 3100
answered
Q: I am retired. am over sixty. am I better to leave my super with the fund where it is currently held or would I be better to to put it into a bank investment account?
A: Sure Carmel, give me a call after 3pm today and you should be able to reach me.
Stuart
answered
Q: I am retired. am over sixty. am I better to leave my super with the fund where it is currently held or would I be better to to put it into a bank investment account?
A: Hi Carmel,
Its probably quicker and easier to give you a quick call and run through the scenario over the phone. Or you're welcome to contact me our office line is 07 3144 3100.
Stuart
answered
Q: I am retired. am over sixty. am I better to leave my super with the fund where it is currently held or would I be better to to put it into a bank investment account?
A: Hi Carmel,
You would pay less tax keeping your investments inside super.
At 60 and being retired you will now be able to draw down from your super tax free if in pension phase giving you a tax free income stream. Capital gains on earnings are taxed more lightly than outside super.
If you were to withdraw the funds from super and invest it in a non-super investment you would be subject to income tax. Capital gains would be taxed at the same rate.
The amount you have in super and your income requirements really need to be considered as well as your investment strategy.
I hope this was helpful, let me know if you have any further questions.
Stuart Christie
Financial Planner
https://www.linkedin.com/in/stuartchristiefinancialplanner/
answered
Q: Hi I have a personal loan with repayments of about $940.00 per month. I have been advised I don't qualify for a home loan due to this liability. The loan in question still has about 5 yrs left. Should I look at buying land or just pay off the loan first?
I am wanting to get into my first home asap
A: Hi Cheree,
There's two things the banks look at when you're applying for a loan:
1) Whether you have a big enough deposit (this could include equity or a guarantor).
2) Whether you can afford the loan repayments.
Assuming you are all good on the deposit front it sounds like the repayments test is where they theres an issue. One option is to reduce the amount that you pay for a home therefore reducing the loan amount. But this can mean sacrificing where you can choose to live or the size or build of the home.
Another option is to wait to payout the personal loan then reapply to see how this affects your borrowing power.
The bank lender or broker should be able to give you an idea of how much you can borrow both now and once the perosnal loan is repaid so you may want to find that out to understand how much they will lend you in each case.
If you still can't borrow enough to keep up with the repayments you may need more income or a partner or boarder to assist with the repayments. If you buy with a partner they will also be liable for the full mortgage debt so this is a serious financial committment to consider.
I hope you found this helpful let me know if you have any further questions.
Stuart Christie
Financial Planner
answered
Q: Hi. We have just sold our home and have a sum of money to put into term deposit. The bank we are currently with is backed by government for $250k deposits. Are we best to do 2 separate deposits and are we also best to have fall due in different financial year? We plan on buying again within 12 months. My partner is working however I am not at moment but plan to shortly.
Thank you
A: Hi there,
When interest is earned on bank deposits tax is paid at the individuals income tax rate which is determined by total income for that financial year. If the account is held in joint names the tax is split equally between both account holders.
If a couple are on a single income they will pay tax on the working spouses marginal tax rate and the non working spouse will pay tax on interest earned, if this interest exceeds the tax free threshold.
Staggering the term deposit maturity dates over two financial years will change when the income is taxed but it may not necessarily reduce the amount you are taxed. This would depend on marginal tax rates which determine the amount of tax payable.
The APRA list of Authorised Deposit Institutions has been updated a few days ago, heres the link if you want to check it out.
http://www.apra.gov.au/adi/pages/adilist.aspx
I hope this helps, let me know if there is anything else I can help with.
Stuart Christie
https://www.linkedin.com/in/stuartjchristie/
answered
Q: What is the process to getting your jewellery insured and what would I need to make a claim? Are there any organisations you can recommend for this coverage?
A: Hi Camille,
You can insure your jewellery in the same policy as your house contents insurance. The thing to watch out for is that most insurers will have a maximum limit to how much you can claim on a single item. This means possessions like jewellery, art work or musical instruments maybe only receive a payout for a fraction of their value.
Fortunately you can specify items on your policy. Specifying the quantity and value of each item will mean that the insurer can build these items into the policy, usually listing them on the policy schedule for peace of mind. You may be required to get valuations and keeping a high quality photo catalogue of your jewellery is always advisable.
This should make any claims streamlined and fairly straight forward. Insurers may differ on specified items so once you have narrowed them down with a few quotes make sure to check the PDS or speak to a representative or insurance broker.
I hope this helps, let me know if you have any further questions.
Stuart Christie
https://au.linkedin.com/in/stuartjchristie
answered
Q: I am looking at selling my current PPR and buying a bigger PPR? This property is used as security for two investment properties. How should I go about it to avoid a bridging loan and paying LMI, or selling first & having to pay down the investment loans?
A: Hi TJ,
There are a couple of ways to sell your current primary residence but not have to pay down the investment loans.
You can do this one of two ways:
1) Simultaneous settlement
This works by buying and selling your current PPR as part of the same settlement essentially completing the purchase on your new PPR at the same time as the sale on your current home. This can cause added stress as you need to line up both parties for settlement at the same time.
2) Term deposit guarantee
With this option you allow the bank to hold the proceeds of the sale of your PPR as a term deposit which acts as collateral against the two investment properties until you purchase the new PPR at which time funds are released for the purchase and collateral is taken over the new home.
In terms of LMI, there are a few variables at play such as the current valuations on the investment properties, the sale price of your current PPR and purchase price of the new home which all need to be determined to give a definitive answer.
But generally speaking if the level of debt against the two investment properties is lower than 80% of the value of the investment properties and term deposit combined you will avoid paying LMI.
The lender/broker can work through the numbers and tell whether you have enough equity to make this viable.
I hope this helps, you are welcome to contact me if you have any further questions.
Stuart Christie
https://au.linkedin.com/in/stuartjchristie
answered
Q: Unsure if my husband and I should take out life insurance and what institution should I approach?
A: Hi Antonella,
To determine whether you need Life insurance.. and this may sound gloomy, consider what you and your partner would do in the event that one of you passed away.
Say you are a full-time Mother and your husband is the sole income earner.
Would you have the necessary income to maintain your current debt and lifestyle repayments? Funeral costs?
Would your partner be able to continue working and still care for your children?
Is the familys income protected against sickness, acciddents and injury?
Would you want to Bequest anything to your children to secure their future and or education?
How would a serious medical event impact your daily lives?
There are a lot of different scenarios but it is common for most young families to have high debt and few assets meaning they should seriously consider Life insurance.
Most of the major banks offer Life insurance and there are some major Life insurance companies with high quality policies. You should seek financial advice about the level of cover and how certain features can benefit your situation.
I hope this helps, let me know if you have any questions.
Stuart Christie
https://www.linkedin.com/in/stuartjchristie
Antonella Samperi S
8 years ago
answered
Q: The new super rules are confusing. I have around 500K in super now, am 54 years old. What should I do next?
A: Hi Judy,
You are nearing preservation age and ultimately retirement so in terms of what you should do next perhaps start considering:
What age would you would like to retire?
What is your ideal retirement income?
How long do you need this income to last in retirement?
Where are you planning to live in retirement?
If you get a gauge on these aspects it should make it easier to start to plan the finer points like superannuation. Legislation will always be tricky because the law and tax systems are complex.
It may also be a good time to review your estate planning with family so as you can enter retirement feeling completely in control of your financial situation.
A good quality Financial Adviser can help you but you should understand why you are seeking advice and choose someone you trust.
I hope this helps, let me know if you have any questions.
Stuart Christie
https://au.linkedin.com/in/stuartjchristie
answered
Q: Can I use some of my super towards my deposit?
A: Hi Pru,
Your Super can't be accessed to buy your own home unfortunately, only an investment property if using a SMSF. I commented on some SMSF basics in a previous post if you want to check it out later.
http://www.echofied.com/au/question/511/are-smsf-a-good-investment
There is a lower tax environment than normal when investing inside Super so you shouldn’t ignore this investment.
There are three options to buying your own home:
1) Deposit.
2) Equity.
3) Guarantor (Using someone elses equity).
Deposit.
Saving for a deposit is all about discipline, cash flow structure and sticking to a budget. Get an idea of how much you need for a deposit then work out what you can save regularly and stick to it. Don’t try and save too much. If you over save and neglect things like car maintenance, holidays or other bills it can be a house of cards.
Equity.
If you already own a property you may be able to borrow against it instead of using a cash deposit. The value of both loans generally wants to be lower than 80% of the total value of both properties. It can be higher than 80% but you incur other costs.
Guarantor Loan.
A guarantor loan is similar to equity except you are using the equity in someone elses loan. With this option a loan equal to the deposit is created in your name and the guarantors (usually a close relative). The remainder of the loan is in your name. This option means you don’t need to save for a deposit, however it also means that the guarantors property is secured by part of your loan.
I hope this helps, let me know if you have any questions.
Stuart Christie
https://www.linkedin.com/in/stuartjchristie
answered
Q: Are smsf a good investment?
A: Hi Craig,
I'm a Financial Adviser based in the Brisbane CBD.
In a nutshell a SMSF allows you and up to three other members run your own super fund by becoming the trustees of the fund.
You are then responsible for complying with all of the super legislation governing self managed super as well as administrative obligations such as having the fund audited on an annual basis.
On the plus side, you get complete control over the investment options including direct property which is not available in retail super.
A negative is that if you don’t have sufficient knowledge or experience in maintaining the day to day running of the fund, or lack the know-how to invest your funds, you rely on paying for these services which may defeat the purpose.
As a general rule of thumb, investment earnings on lower balances can be severely impacted by fees which can make a SMSF less cost effective.
I hope this helps, let me know if you have any questions.
Stuart Christie
https://www.linkedin.com/in/stuartjchristie
