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Regan Isaac - What drives me
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Q: Selling a property in Leichhardt, does anyone know of a real estate agent they would be happy to recommend?
A: Sure do Andrew, a gentlemen from McGrath in that area helped one of my clients sell their former family home in Leichhardt not that long ago - Top agent and client was over the moon.
Michael Tringali from McGrath.
You can contact him directly or contact myself and I can introduce you.
Cheers
Regan
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Q: I have been running my own engineering business for 5 years and nearly 50. I have life insurance but a few people have suggested I should really be looking at business and income protection. I would like to get some advice on the insurance options I should look at?
A: Hi Matt,
Great questions - Challenging ones to answer however!
Insurance is a bit of a necessary evil for most of us and pays to put in the time and effort to ensure you have what you need and aren't paying for something you don't. Life insurance is common if you have debt, dependants, will leave behind other liabilities etc With that in mind, ensuring you have appropriate business insurance and an asset protection strategy is also key. Income protection (protecting your ability to earn an income) is something we all should consider (there are several types which can be held either inside or outside your superannuation - or both) however, depending on the structure of your business, you may also need "key man" insurance, or buy/sell cover if you are working with others who own equity in your business.
Its difficult to give you much guidance without having more information as this insurance is very much an individual strategy and what you need/works well for you, might be the complete opposite of another business.
Our head office is in Circular Quay so feel free to reach out to me directly and will be happy to jump on a call together.
Regan
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Q: Hi, we took some bad advice a number of years ago which affected our super. We have a business that is going well and we pay ourselves quite well ($125,000 each) and we own our own home. Given the hit to our super should we look to reduce our salaries and put the difference into our super. We are in our mid 50’s and would like to know the tax implications of this strategy?
A: Hi Bec,
Great question, and pleased to hear you guys are bringing this conversation forward - Not great to hear you haven't had the best experiences in the past!
Answering these types of specific questions is often difficult as there are so many variables with your income, tax rates, superannuation balance, timeframe to retirement, how your superannuation is invested, what personal objectives are driving these decisions etc
In these types of situations it is almost always best to get good advice, a good adviser will always discuss your options prior to engaging you as a client and determine the benefit they can provide.
At a high level, the simplest way to contribute to superannuation is via concessional contributions (contributing before tax) There is a $25,000 cap per individual per financial year so in most cases its best to avoid breaching this cap. This will allow you to contribute up to $50,000 between you and will also reduce your respective taxable incomes which will save on your income tax - You should also note that these contributions will still attract 15% tax inside super.
You can also contribute after tax (non-concessional contributions) The annual cap is currently $100,000 per person per FY or $300,000 per person under the "bring forward rule" however, you cannot make any further non concessional contributions for 3 years under this rule once the initial $300,000 contribution is made.
There is also a substantial amount of legislative change in this space in recent years meaning the superannuation / retirement landscape is very different than 2-3 years ago - Transition to retirement pensions should also be considered however, may or may not benefit you depending on your financial circumstances. I would also highly recommend looking at your business structure and exit strategy as there can be some great tax incentives in this space if executed correctly!
In summary, everyone is different, and what works well for you may not benefit others, there are many factors you should both be mindful of when it comes to maximizing your retirement benefits and good advice should be sought to ensure you get the best possible financial outcome.
Hopefully this is a good starting point for you both!
Happy to discuss further.
Regan
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Announcer Group - Dream it, Organise it, Grow it, Protect it, Enjoy it!
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A personal story and why we all need a will
If you are reading this article, chances are you are one of the 45% of Australians that have never written a will, or perhaps you haven’t updated it recently. Neither situation is likely to ...
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Q: My sister, brother and I would like to buy a property together and we have been asked if we want to buy the property as joint tenants or tenants in common. What do people recommend?
A: Great question guys, often this can be tricky with so many parties involved. There can also be significant tax and estate planning implications depending how you choose to structure the asset. Each persons individual circumstances should be considered.
Have you considered whether purchasing the property using a discretionary (family) trust might benefit you?
Highly recommend you guys obtain some solid advice from an adviser, accountant and mortgage broker. Once you are over this hurdle, each of you should also visit a solicitor to get your wills and estate in order.
Best of luck!
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Q: Hi, we are looking for more room and a bigger yard for the kids so taking the plunge and looking at Suburbs around Turramurra. Would anyone recommend a Real estate agent we could start talking to?
A: Hi Helen,
Can’t speak highly enough of the area! (Opinion may be a little bias however)
Have a chat with Alex Mintorn or Domenic Maxwell from McGrath in Wahroonga. They will look after you!
Feel free to contact me through the link and can put you in touch directly.
All the best!
Regan
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Q: I am concerned I have a bad credit rating, but I don't know how to find out if this is the case. Also, if I do have a bad credit rating, is there a way I can fix it?
A: Hi Sarah,
Credit reports are something seldom understood, as most people have not actually accessed their own credit file to see whats recorded or how they work. In the past, your credit history was generally restricted to:
- credit enquiries (when a company checks your profile because you've applied for credit)
- credit defaults (if you fail to repay credit or do not meet the conditions of your contract)
- Court Judgements
- Bankruptcy or Debt agreements etc
Since the introduction of new legislation in 2014, there have been significant changes to what can now be recorded on your credit file, including whether you make repayments on time for your credit cards, utilities, phone or mobile etc
You can check out this link to learn more: http://creditsmart.org.au/what-has-changed
In short, it's always a good idea to keep an eye on your credit score as this is a good indicator of how banks or credit providers may view an application your put forward, but also will let you know how to improve your credit rating and even if someone (other than you) has applied for credit without your knowing!
I've used https://www.creditsavvy.com.au/ to get their free credit report in the past which is almost instantaneous once you've completed the set-up. You may be able to get more detailed reports by paying but this should be a good start for you.
I hope you found this useful!
Regan Isaac
Financial Adviser
P: (02) 9251 5558
E: risaac@announcer.com.au
W: www.announcer.com.au
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Q: My partner and I are renters in Sydney and applying for new units in Pyrmont. We are excellent tenants and have been in the same unit happily for almost 4 years, but have had at least 3 unsuccessful applications recently. Are homeowners/property managers looking for a certain percentage higher on the asking prices in competitive areas? How can we increase the competitiveness of our application?
A: Hi Lauren,
Good question - All too common in today's market as well.
The competition when renting is often dictated by many factors including the location, particular property, availability as well as current market conditions so its increasingly important to find ways to give you "the edge" over other renters.
All responses above have some good input and are pretty close on the money. A few other handy hints:
- Apply using the agents preferred format: Most will offer online applications which are easier for them to sort through and take a printed copy with you to the open home
- Prepare as much documentation as possible before attending the open house: Payslips, rental history, references etc
- It goes without saying that its always advantages to be early on open day - Present well, make a good impression and take the opportunity to have a real conversation with the agent so they feel comfortable that they know a bit about you and it will also give you an opportunity to give them an insight into why you like the property and that you would consider an extended rental period.
- As mentioned above, providing a budget and/or financial assets can really strengthen an application by showing that not only are you good at managing money but also have the capability to afford rent
- Only a personal opinion, but I would try to avoid agreeing to rental increases inside the first 12 months. Whilst this could potentially be a way to get ahead, you never know what direction the market could be heading and could find yourself paying well above the median rent in a year or two.
I hope you find this info useful and good luck with your next open home!
Regan Isaac
Financial Adviser
P: (02) 9251 5558
E: risaac@announcer.com.au
W: www.announcer.com.au
