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Welcome to the official website of NRG Financial Services, The go-to destination for your financial needs. With over two decades of experience in the finance industry, we aim to help you navigate the complex world of home loans and financial services.
Choose us as your trusted partner to experience the difference in personalised service, industry expertise, and unwavering commitment to your financial success. Contact us today to get started on your financial journey.

Extensive Experience

With over two decades in the finance industry, our deep knowledge and expertise ensure you receive reliable guidance and tailored solutions.

Commitment to the Community

As active members of the local community, we are dedicated to making a positive impact beyond financial services.

Personalised Approach

We take the time to understand your unique needs and goals, providing personalised solutions that address your specific circumstances.

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Unmatched Industry Connections

Our affiliation with the country's largest broking company gives us access to a vast network of lenders and financial products, ensuring a wide range of options for you.

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Our advanced tools and systems streamline the home loan application process, enabling efficient comparisons and informed decision-making.

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We are proud members of respected industry associations, reflecting our commitment to professionalism, ethics, and your best interests.

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Transforming Possibilities and Inspiring Triumph - Our Managing Director, the Navigator of Achievement

At NRG Financial Services, Tim Jennings’s dedication to excellence and his passion for helping clients achieve their financial goals are the driving forces behind our success. Tim holds a Master of Business Degree from Newcastle University, demonstrating his commitment to continuous learning and staying at the forefront of industry trends. With his extensive background in mortgage broking, he possesses a deep understanding of the intricacies involved in securing the right home loan tailored to your unique circumstances.

With his own Australian Credit Licence number 384496, Tim operates with the utmost professionalism and transparency. He is a staunch advocate for his clients, ensuring their best interests are always at the forefront of every financial decision. Tim’s commitment to ethical conduct is further exemplified by his role as a Justice of the Peace.

Beyond his financial expertise, Tim is also a Station Officer for Fire and Rescue NSW, highlighting his unwavering commitment to serving and protecting the local community. As a resident of Newcastle and the Hunter, he has an intimate understanding of the region’s unique needs and is dedicated to assisting his fellow community members in achieving their financial goals.

Tim is a proud member of the Australian Financial Complaints Authority (44198) and the Finance Brokers Association of Australia (member number 3054), demonstrating his commitment to maintaining the highest professional standards. Additionally, he carries Professional Indemnity Insurance of up to $20,000,000, providing you with peace of mind and protection.

Tim utilizes state-of-the-art technology to simplify the home loan application process for you. With the capability to objectively compare 1,650 of the latest financial products from over 40 lenders, including the Big 4 Banks, he ensures you have access to the most competitive options available.

We invite you to experience the difference of working with a trusted broker who genuinely cares about your financial well-being.

Transforming Possibilities and Inspiring Triumph - Our Managing Director

At NRG Financial Services, Tim Jennings’s dedication to excellence and his passion for helping clients achieve their financial goals are the driving forces behind our success. Tim holds a Master of Business Degree from Newcastle University, demonstrating his commitment to continuous learning and staying at the forefront of industry trends. With his extensive background in mortgage broking, he possesses a deep understanding of the intricacies involved in securing the right home loan tailored to your unique circumstances.

With his own Australian Credit Licence number 384496, Tim operates with the utmost professionalism and transparency. He is a staunch advocate for his clients, ensuring their best interests are always at the forefront of every financial decision. Tim’s commitment to ethical conduct is further exemplified by his role as a Justice of the Peace.

Beyond his financial expertise, Tim is also a Station Officer for Fire and Rescue NSW, highlighting his unwavering commitment to serving and protecting the local community. As a resident of Newcastle and the Hunter, he has an intimate understanding of the region’s unique needs and is dedicated to assisting his fellow community members in achieving their financial goals.

Tim is a proud member of the Australian Financial Complaints Authority (44198) and the Finance Brokers Association of Australia (member number 3054), demonstrating his commitment to maintaining the highest professional standards. Additionally, he carries Professional Indemnity Insurance of up to $20,000,000, providing you with peace of mind and protection.

Tim utilises state-of-the-art technology to simplify the home loan application process for you. With the capability to objectively compare 1,650 of the latest financial products from over 40 lenders, including the Big 4 Banks, he ensures you have access to the most competitive options available.

We invite you to experience the difference of working with a trusted broker who genuinely cares about your financial well-being.

Tim Jennings

Managing Director

Enhancing Efficiency and Empowering Progress - Our Executive Assistant, the Fuel for Growth

Meet the dedicated executive Afrida who plays a pivotal role in the success of NRG Financial Services.
As the Executive at NRG Financial Services, Afrida is responsible for overseeing the company’s operations, driving growth initiatives, and ensuring the highest standards of customer service. With her keen business acumen and analytical mindset, she consistently identifies opportunities for improvement and guides the implementation of effective strategies.
Afrida’s exceptional interpersonal skills and ability to build strong relationships contribute to the seamless collaboration between team members and clients. Driven by a genuine desire to make a positive impact on clients’ financial journeys, Afrida is dedicated to helping individuals and businesses achieve their goals. Her unwavering commitment to excellence, coupled with her ability to navigate complex financial landscapes, makes her an invaluable asset to the NRG Financial Services team.

Afrida Kaiser

Admin Executive

Afrida Kaiser

Admin Executive

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Attentive, particular and thorough. Extremely helpful in assisting thru the process. Highly recommend!!! Thank you !!

Richard Jay December 1, 2022
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Thank you to Tim and his team for helping us to refinance our home loan, they took the stress out of it and guided us through every step of the process. Tim is always very friendly and was very quick to respond to my emails and messages.

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Introducing 5 great reasons to invest in property today: Do you sometimes listen to those seasoned property investors and wonder how they got started? It's quite simple actually - they probably started with just one investment property. Anyone can realise the dream of achieving your financial goals through property investment. If you're not sure why you would want to get involved, here are the five best reasons: 1. Financial Independence Now, more than ever, it's important to make sure you have steps in place if you want to live comfortably in your retirement. The retirement age seems to be increasing, and people are no longer able to rely on the aged pension as a sole source of income. If you start now you can build a property investment portfolio that will provide you with financial independence - whatever that means to you. For some people that means one investment property that provides a rental return. For others, it means building a veritable monopoly of investment properties in an apparent bid to conquer the universe. 2. Take control of your own investments The great thing about investing in property is that you're completely in control of what you purchase, and you can take steps to ensure that you give yourself the best chance of achieving excellent capital growth or rental return figures. The problem with investing in shares and superannuation is that you aren't able to control fluctuations in the market - your role is very passive. 3. Grow your portfolio as your equity increases Once you start investing in property, it's sometimes difficult to stop. One investment starts to grow which allows you to purchase another, and before you know it you have a nice little collection of properties making money for you. 4. Capital Growth If you choose wisely, you should be able to achieve strong capital growth on your investment properties. The key is to choose the right type of property in the right area. This might not be an area where you would choose to live - it just needs to be an area with lots of potential for growth. 5. Rental Income If you hope to achieve a good rental income from your investment properties, you should purchase carefully, and keep your ideal tenant in mind. If you like the idea of renting to students, make sure you look in areas near a university or very near to public transport. If you would prefer to rent to a family, schools, shopping centres and parks might be more important. But decide what's most important first: capital growth or rental return. You might not always get a great rental return in an area that has a high level of growth.

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Will a new vehicle jump-start your earnings? It๏ฟฝs always important to take stock and consider whether the purchase of new assets or equipment will benefit your business. Asset finance is often the answer. Financing new equipment, instead of purchasing it outright, can be a good way to preserve cash flow and working capital while adding an asset that can begin to generate immediate income. And, of course, there may be potential tax advantages that could also come your way.

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Revealed - the secrets to buying property with confidence. Getting the right property at the right price isn't good luck. Its all about being prepared and taking the right steps at the right time. Read this article - "Buying with Confidence" - for a number of quick tips to playing the home buying game on your terms. https://www.mortgageaustralia.com.au/email/files/buyingpropertywithconfidence.pdf

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๐ŸŒŸ Don't let your Mortgage Loan weigh you down! With NRG Financial Services, unlock its potential! Refinance with us and lower your monthly payments and secure the best possible interest rate. ๐‘จ๐’„๐’„๐’†๐’”๐’” ๐’„๐’‚๐’”๐’‰ - Consolidate debt, renovations, or achieve your financial goals. Contact us today at: โ˜Ž๏ธ ๐Ÿ๐Ÿ‘๐ŸŽ๐ŸŽ ๐Ÿ–๐Ÿ“๐Ÿ— ๐Ÿ–๐Ÿ๐Ÿ“ ๐Ÿ“ฉ ๐š๐๐ฆ๐ข๐ง@๐ง๐ซ๐ ๐ฌ๐ž๐ซ๐ฏ๐ข๐œ๐ž๐ฌ.๐ง๐ž๐ญ.๐š๐ฎ ๐ŸŒ ๐’˜๐’˜๐’˜.๐’๐’“๐’ˆ๐’‡๐’Š๐’๐’‚๐’๐’„๐’Š๐’‚๐’๐’”๐’†๐’“๐’—๐’Š๐’„๐’†๐’”.๐’„๐’๐’Ž.๐’‚๐’– #Refinance #MortgageBroker #NRGFinancialServices

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Competition among lenders for home loans remains steep but borrowers may still be missing out on great deals and important information that could save them thousands of dollars. 1. YOU CAN SET UP A LINE OF CREDIT TO HELP FUND YOUR INVESTMENT PROPERTY If you are negative gearing an investment property, you will have a shortfall between your costs and rental earnings. You can fund this gap with a line of credit (LOC) product using equity in your home or another property. Say you have a gap of about $500 each month for your investment property, including interest and other costs, such as repairs and rates. You could set up a LOC for $20,000 to fund these expenses for a period of time, which may give you a little more financial breathing room. How long the LOC holds up will depend on interest rate fluctuations and your rental costs. Like interest on your primary investment loan, the interest on this LOC is tax deductible, providing its sole use is to cover your investment expenses. One caveat: this strategy works providing there is capital growth in your investment property over the same period, otherwise you are eating into your capital gain. You also need to have some fiscal discipline and not dip into the LOC for non-investment related expenses, such as holidays. While lenders will be able to set this structure up quite easily, they are not likely to offer it up front as part of your investment loan. Talk to your broker and financial advisor about whether this strategy is a smart option for you. 2. PEOPLE WITH POOR CREDIT RATINGS CAN STILL GET HOME LOANS While it's true a poor financial record will probably make it harder for you to land a loan, the doors may not be closed. Lending criteria has tightened in the wake of the global financial crisis but there are still plenty of loans up for grabs for those with a blemished track record or little financial backing. Be prepared, however, to pay a higher interest rate than the standard offering. A Mortgage Broker will be able to help you find loans with less stringent criteria, often labelled non-conforming loans, and will help negotiate with the lender on your behalf. You should also do a budget to ensure you are able to make any repayments, lest you end up adding to your woes. 3. THERE ARE WAYS TO AVOID LENDER'S MORTGAGE INSURANCE IF YOU DON'T HAVE A 20 PER CENT DEPOSIT Lender's Mortgage Insurance (LMI) is a one-off payment by the borrower when a loan exceeds 80 per cent of the property's value. It covers the lender's risk if the borrower defaults, but does not cover any loss by the borrower. LMI can be a painful hit to the hip pocket, often running to several thousands of dollars, especially after a home buyer has scraped together the minimum deposit. One alternative to paying LMI if you have less than a 20 per cent deposit is to secure a guarantor to cover the extra stretch. A guarantor is usually a family member who is willing to put forward their property as security. One of the common myths that can scare family off is that the guarantor is then responsible for the entire loan. Not true. They only need to guarantee any amount beyond the 80 per cent loan-to-value ratio (LVR). Although it's a good idea for a guarantor to seek both financial and legal advice before committing. The advantage of securing additional funding through a guarantor is that it simply gets tacked onto your loan so you can repay it over time, rather than forking out up front for LMI. The key before you make any big decisions about home finance is to have all the facts at your fingertips. Your broker will be able to compare the products and options that are out there and size up which arrangement will work for you and your circumstances. 4. YOU HAVE FREEDOM OF CHOICE Most lenders will pitch one or two loan products to customers. But that's a tiny fraction of the number of loans available in Australia. If you want to get a grasp of the wide variety of products out there, consider a mortgage broker. A mortgage broker works for you, not the lender, and can help you tap this vast vein and find the loan that is best suited to your needs. Talk to your broker about your financial circumstances and goals so they have as much information as possible to determine the best product solution for you.

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Did you know that approximately 80% of Australians end up on some form of government assistance in retirement? Did you also know that ONLY 20% of Australians invest in property? Coincidence you think? I'd say not. You could probably afford an investment property for less than the repayments on a small car. So rather than upgrading your car as soon as it is paid off, consider building wealth for your future. Have a look at this short article for more details - Are You Driving Your Investment Property.pdf https://www.mortgageaustralia.com.au/email/files/areyoudrivingyourinvestmentproperty.pdf

Australia has once again become a nation of savers. No longer is debt de rigeur. In this post-GFC era we prefer to play it safe with lower levels of debt and are looking for ways to be debt-free faster. Savvy savers are making the most of low interest rates and their savings by maximising offset accounts. An offset account is essentially a savings account that is linked to a loan account. Instead of earning interest on your savings deposit, the funds are used to offset the loan account. Your loan repayment remains the same, but more of it is used to pay off the principal, reducing the life of your loan and slashing the amount of interest paid. How offset accounts work Lenders generally offer two types of offset accounts: full offset or partial offset. A full offset account offers you the same interest rate on your savings as what is charged on your home loan. For example, if you have a $100,000 home loan with interest charged at 6%, plus $10,000 in an offset account earning 6%, the lender will offset your loan balance with your offset account balance and only calculate interest on $90,000. A partial offset account only offers you a standard savings rate, which is lower than the interest charged on your home loan, so one does not completely offset the other. Using the same example as above, a partial offset account might charge the same 6% on the loan but only offer 4% on the savings. Instead of one lot of interest completely offsetting the other, you would pay a reduced interest rate of 2% (the difference between 6% and 4%) on $10,000 of your loan. Many borrowers opt for a 100% offset account to take full advantage of this feature, but speak to your broker for more information about this type of account. Benefits An offset account still allows you to make extra payments on the loan. However, instead of paying more into your actual mortgage, you maintain as high a balance as possible in your savings. This reduces the interest and life span on your loan but gives you all the access and flexibility of a regular savings account, should you need it. Some lenders even allow you to set up an offset account with a fixed rate loan, giving you certainty around your payments plus the opportunity to get ahead of the debt. There is also the added benefit of a tax incentive. Because the interest is essentially not earned, you don't have to include it in your taxable income. Still in the nest The key to maximising an offset account is to maintain as high a savings balance as possible. The first step to flesh out your finances is to have your salary paid directly into your savings account. Then it's a matter of keeping your money in the savings account for as long as possible. One of the most effective tools is a credit card with a generous interest-free period. Look for a lender offering 55 days interest free. While it may seem strange to use credit to save, putting as many costs as possible on a card with a long interest-free period can be an effective loan buster. The interest-free period allows you to squirrel away as much of your pay, and any other earnings, for as long as possible to maximise your interest earnings. You just need to make sure you pay off your credit card debt in full before the interest-free period runs out. What you should consider An offset account can be a very effective strategy to stay one step ahead of your home loan, providing your spending does not outstrip your savings and you leave your funds to grow over time. You also need savings to start an offset account. The whole concept fails if you don't have any savings to leverage in the first instance. You then need to ensure you can maintain surplus cashflow, especially if taking advantage of a credit card with an extended interest-free period. If that's the case, you will need to be disciplined with expenses, payments and timing. If tempted to put too much on the plastic, the credit card tactic may become a debt trap. Similarly, if you don't want to be tempted to overspend, you may be better off injecting any spare funds straight into your loan repayments instead of turning to an offset account. Look for an offset account that still gives you the standard benefits of a regular savings account: ATM, EFTPOS and telephone and internet banking. Although the aim is to maximise your savings, you still want to be able to access and use your funds as you would with any regular savings account. Lenders also often charge a higher home loan rate for an offset account. Ask your broker to help you shop around for the most competitive option to suit your circumstances. If you are still paying off your home or an investment property, but also managing to sock away some savings, an offset account could help you be debt-free faster. Talk to your broker about your circumstances to find out which options may work best for you.

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Finally - your survival guide to a joint bank account: It's the one proposal that never appears in romantic movies. It doesn't involve a big diamond, and it won't lead you down a flower-adorned aisle to the tune of 'the wind beneath my wings'. For some, it's an exciting affirmation that the relationship is becoming more serious. For others, it can be a disaster waiting to happen. So 'what's this proposal?' you ask. It goes a little something like this... "Honey, do you want to open a joint bank account?" 10 little words that will either melt your heart, or have it beating double time in sheer panic. So how do you avoid joint account disaster? Is it ever a good idea to entwine your finances? Like many other financial decisions, this one is best served with a healthy dose of discussion, and some planning. It's crucial to compare notes early on, and ensure that you're both on the same page when it comes to matters of the wallet. Clear the air One of the biggest relationship-killers is money. Some people feel that money is a necessary evil, something that comes and goes, pale in comparison to experiences and relationships. Other people see money as a means to achieving freedom and happiness, and have clear financial goals in mind. You might be very compatible in many ways, but it's possible that you have very different attitudes about money. It's important to have some open discussions about your financial situation before you open a joint account. Plan a budget Discuss what your joint account will be used for. Many couples have a joint account for the rent and household bills, and they each deposit an agreed portion of their pay. The remainder stays in personal accounts to be used for savings, leisure or personal shopping. It's important that both parties are clear about which expenses can be paid out of the joint account. This will avoid arguments when one party tries to pay the gas bill, only to find that their partner has withdrawn that money for a friend's birthday present. Sharing is caring It might be a difficult topic, but this is the time to be honest about what you have, what you owe and what you earn. If one partner earns significantly more than the other, you will need to work out whether you both deposit the same amount into the account every month. If one partner has significant debts, it's vital to get this out in the open to avoid problems down the track. With a bit of planning and some candid conversations, your relationship can survive the joint account challenge.

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Did you hear about this great win for home buyers? Australian home owners scored a win on July 1 2011 when lenders were banned from charging exit fees on home loans, making it more enticing for borrowers to shop around for a better deal. Exit fees were generally charged for the first four or five years of a mortgage to discourage borrowers from switching to a competitor before the lender had made a profit on the loan. Unable to now charge exit fees on variable loans, many lenders are making sure they cover their costs upfront with higher set-up fees. If you are thinking of switching, you should make sure you get all the facts and compare like with like so what you gain in the short term isn't lost in the long run. Take into account loan establishment fees, ongoing account fees, the cost of any property valuations required by your new lender and settlement fees when doing your sums on how much you will be saving by switching. Exit fees also shouldn't be confused with break fees on fixed rate loans. Lenders can and do still charge a fairly hefty fee if you exit a loan during a fixed term. Break fees on fixed rate loans are usually based on: the interest rate you locked in, compared to the current market interest rate; the length of time remaining on your fixed-rate term; and your original loan amount. They can run into thousands of dollars, and remain a formidable deterrent to fixed rate customers thinking of a switch. One of the best ways to get a helicopter view of what it will cost you to switch and what you stand to gain is to talk to your local Mortgage Broker. That way you can be sure if you close the door on your current loan, you are stepping forward financially.

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How to fix a broken Credit Record. Do you know what a lender will find when they look at your credit history report? For many borrowers, it's not until they apply for a loan that they even lay eyes on this document for the first time. Unfortunately, this is also when many people find out that their credit history is less than perfect. There are lots of little mistakes you can easily stumble into when you're not focussing on maintaining a healthy credit record. Don't despair though - there are also ways to fix them, as long as you're willing to be a little proactive. Multiple Applications Some people cast a very wide net when applying for a home loan. They complete applications with a variety of lenders in the hope that one of them will be approved. This tactic might have been a great idea when you were applying to universities, but it's the worst possible way to apply for a home loan. Unfortunately when you apply for a loan and you aren't successful for any reason, this is noted on your credit record. There may be logical reasons for your application being declined - sometimes it's as simple as not being a customer of that particular bank. The problem is, when you have a few of these on your record it can start to appear that you aren't a very good risk for a lender - since so many other lenders have already said no. The best way around this is to engage a mortgage broker, who will investigate on your behalf before lodging and application with the most appropriate lender for your personal circumstances. Digging your heels in Let's face it - there are some companies out there who are just shocking to deal with. If you spend a lot of time on the phone arguing over incorrect bills, you're not alone. After lots of phone calls, it might seem like a good idea to ignore that incorrect phone bill and hope that it goes away. The problem with that approach - the bill might be listed as a default on your permanent record. For your own best interests, it's probably better to pay the bill, and then dispute it afterwards. Not keeping on top of your bills If you have moved house a couple of times, or if you don't have the best filing systems in place, it's possible that you might have misplaced or neglected to pay the occasional bill. Sometimes people have defaults listed on their credit history report due to moving house, and not receiving any bills or reminders relating to the debt. Make sure that you have proper mail redirections in place when you move, and make a list of companies to update your details with as soon as possible. If you have these sorts of defaults on your credit history report, you might be able to have them removed by communicating directly with the company who reported the default. Failing this, you might be able to lodge a dispute through a credit reporting body such as Veda.

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When buying a home doing things in a certain order can make it a lot less stressful. I hope my one-page Step by Step Guide to Buying a Home has some tips that may help when buying your next home. https://www.mortgageaustralia.com.au/email/files/astepbystepguidetobuyingahome.pdf

๐ŸŒŸ๐Ÿš— ๐•ฏ๐–—๐–Š๐–†๐–’ ๐•ฎ๐–†๐–— ๐•ฌ๐–œ๐–†๐–Ž๐–™๐–˜! ๐ŸŒŸ Accelerate Your Journey: Discover Car Loan Options Secure the perfect ride with rates and terms customized to your needs. We've got you covered, whether you're eyeing something sleek or rugged! Experience a seamless journey to your dream ride with our expert guidance. Say goodbye to the hassle of shopping around for lenders โ€“ we'll take care of everything while you focus on enjoying the road ahead in style. Begin your journey to owning your dream car today! ๐Ÿš€ Drop us a message or give us a call, and let's get you behind the wheel of your dreams! Click [ https://nrgfinancialservices.com.au/contact-us ] ๐๐‘๐† ๐—™๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐’๐ž๐ซ๐ฏ๐ข๐œ๐ž๐ฌ โ˜Ž๏ธ ๐Ÿ๐Ÿ‘๐ŸŽ๐ŸŽ ๐Ÿ–๐Ÿ“๐Ÿ— ๐Ÿ–๐Ÿ๐Ÿ“ ๐Ÿ“ง ๐š๐๐ฆ๐ข๐ง@๐ง๐ซ๐ ๐ฌ๐ž๐ซ๐ฏ๐ข๐œ๐ž๐ฌ.๐ง๐ž๐ญ.๐š๐ฎ ๐ŸŒŽ ๐’˜๐’˜๐’˜.๐’๐’“๐’ˆ๐’‡๐’Š๐’๐’‚๐’๐’„๐’Š๐’‚๐’๐’”๐’†๐’“๐’—๐’Š๐’„๐’†๐’”.๐’„๐’๐’Ž.๐’‚๐’– #nrgfinancialservices #CarLoan #DreamCar #EasyRide

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Do you feel a bit ill when you open the letterbox and see your credit card statement? It's happened to most of us at some point - a few untimely expenses pop up, and suddenly that credit card has a life of its own. The good news? There is hope. You can get control of your credit card debt today with a few simple steps. Stop the bleeding It might sound obvious, but the first step to cutting down your credit card debt is to stop growing it. If you have any direct debits connected to the card, make other arrangements for these to come out of a bank account. Then, use whatever means necessary to destroy the card so that you can stop accruing debt. Pay more than the bare minimum If you only pay the minimum amount each month, you'll see many birthdays waiting for your credit card debt to decrease. In most cases, you will only be paying the interest on the debt without reducing what you owe. It's time to sit down and make a budget, and look for ways to pay as much as possible off your credit card each month. Work out your priorities If you have debts on more than one credit card, your instinct might be to pay the largest amount off as a priority. Alternatively, try focussing on the card with the highest interest rate. It's also worth knocking over your smaller cards first (and then cancelling them) so that you can concentrate on one monthly repayment. Try a balance transfer Many lenders offer great introductory rates on new credit cards. Some even offer rates of 0% for the first 6 or 12 months. This presents a great opportunity to work on getting your balance down, without being charged interest. Beware though - it's important to investigate what your interest rate will be after the introductory period. It's also vital that you do pay as much as possible off the balance. If you don't reduce your debt, and if the standard interest rate is higher than what you had before - you will only do further damage. Save for a rainy day Many of us get into trouble with credit cards because we don't have adequate savings when something unexpected comes up. While you work hard at reducing that credit card debt, try to put a little bit in savings each month and build up a buffer. That way if you suddenly need a new set of tyres or a hot water service, you won't undo all of your good work by whacking it on the credit card. Put your hand up If you can't seem to get control of your finances and you feel like the situation is getting worse every day, it might be time to ask for some help. There are experienced financial counsellors and legal representatives who can help you to make a plan and get back on top of things again.

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How to be a Mortgage Master! We can't control the economy but we can control our budgets. Borrowers should do what they can to pay off their loans fast while times are good. 1. Pretend rates are higher One of the biggest mistakes mortgage-holders make is pocketing the savings from reduced interest rates. The problem is they're usually spent, instead of being socked away. Try working to a tighter budget, where you make home loan repayments at the rate of 9% per annum. If, for example, you have a $250,000 mortgage over 30 years with an interest rate of 7%, you'll save nearly 11.5 years and a whopping $150,000 if you pretend the rate is 9% and pay an extra $350 a month. What's more, if rates do climb, you will be well prepared financially to cope with them. 2. Make more frequent payments Switching from monthly to fortnightly payments can slice years and thousands of dollars off your mortgage, with minimal disruption to your budget. By halving the monthly repayments and paying fortnightly on a $300,000 mortgage over 30 years, you'll save more than six years and more than $100,000 over the life of the loan. 3. Make the most of windfalls Put away the travel brochures and get into the habit of spending your tax return and/or professional bonuses on your home loan instead. You should also channel any annual pay rises into extra repayments (if the terms and conditions of your loan allow you to do so without penalty payments). Providing your loan has a redraw facility, you should be able to access the funds if the need arises. 4. Offset with savings Link your home loan to an offset account, where your savings are offset against the principal, reducing the amount of interest you pay. The more you have in savings, the lower your repayments. 5. Small change - big difference Grab the kids' piggy bank and start stashing your gold coins. You won't miss one or two dollars in change, but it can make a big dent in your mortgage if deposited regularly over long periods. Just an extra $20 a fortnight will shave nearly $15,800 or more than 1.25 years off a $300,000, 30 year loan. Pack your lunch and forgo a take-away coffee each day and your interest savings soar to more than $40,000! 6. Ask your Mortgage Broker to shop around We shop around for the latest technology deals but probably don't go to the same lengths for our loans. Lenders can no longer charge mortgage exit fees if you decide to break a variable home loan, so there has never been a better time to ask your broker to shop around for a better deal. Your existing lender may even come to the party with a lower interest rate in a bid to keep your business. 7. Bank on your local Mortgage Broker Let your broker do the legwork to find the best loan for your circumstances. You may qualify for a package deal with a discounted interest rate over the life of the loan, which could save you thousands. Your broker also has access to a wide range of banks and credit unions, including more boutique lenders who may be prepared to offer more than the majors.

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If things have changed recently - a Home Loan Update may be in order. When I speak to clients I am often surprised at how much their lives have changed since we last spoke. Some have married or unmarried, had children, changed jobs, bought a car, got carried away with their credit cards or even changed their financial goals all together! Sometimes real life gets in the way of our best laid plans and juggling the family finances becomes a challenge. If your life has changed, it is definitely worth spending a little time for a financial check up. It doesn't cost anything for me to take a look at your situation and see if there is any way I can help you get set for the next set of changes in your life. Don't worry about wasting my time if you don't need a new loan. My job is to give you ongoing guidance on the lending options which are right for you and your future. We might not need to change anything at all. However, the banks change their loan offerings constantly and it can be hard to keep track of whether you are in the best loan or could be getting a better deal elsewhere. Satisfy your curiosity and give yourself some peace of mind. Give me a call today. Or if you prefer, you could even just fill out this form and fax or email it to me and then I'll get back to you with some ideas. Looking forward to catching up with you soon. https://www.mortgageaustralia.com.au/email/files/lifeandfinanceupdate.pdf

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Federal and State Governments review their incentive schemes for First Home Buyers with each annual Budget. To find out the latest benefits you are eligible for, visit http://www.firsthome.gov.au/. If you have any questions or would like some help in obtaining all the benefits you can, I'm here to help. http://www.firsthome.gov.au/

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Fixed rate loans - Safety Net or Hostage Situation? Do you buy your movie tickets before you leave the house? Do you like to book a table at a restaurant to make sure you don't miss out? There is a certain comfort in knowing what's going to happen, especially when it comes to planning your financial future. If you worry about the ups and downs of the official cash rate, and the possibility of your home loan repayments increasing without warning, a fixed rate loan could be your new best friend. Fixed interest rates are a kind of insurance policy that protect you against the financial pressure caused by interest rate movements. Depending on your personal situation, you might struggle to meet your repayments if interest rates were to rapidly increase. If you opt for a variable interest rate, you have no control over fluctuations in the market. Ideally, you should have allowed for a few rate rises when deciding how much to borrow. But if you stretched your limit in order to buy your dream property, then fixing your interest rate is a great safety net. Fixed rate loans allow you to be sure about your exact repayment figures for a fixed period of time. This is great for borrowers on a tight budget - because you never have to worry about interest rate fluctuations during the fixed period. The purpose of a fixed rate loan is not to save you money on interest. Generally, these loans will cost you more in interest. Fixed rates are usually higher than variable rates, so the only way this approach will save you money, is if there is a rapid fluctuation in interest rates, and the standard variable rate climbs significantly above your fixed rate. A fixed rate could cost you money if interest rates fall. You will be locked into a higher rate when other people are enjoying a reprieve. You need to decide if you're happy to take this risk and fix your rate for a period of time. The biggest risk of going fixed is the penalties that you will incur if you need to get out of the loan. Many lenders charge enormous discharge fees for borrowers leaving during the fixed interest rate period. It's also very difficult to change your loan during the fixed period, and generally you can't make any lump sum repayments. If you have a variable rate loan, it's a great idea to regularly review your needs every few months. You might decide that the time is right to fix your rate, depending on your circumstances, and the fixed interest rates on offer. Beware of sitting on the fence. Many lenders promote the concept of 50/50 fixed and variable rate loans. Some borrowers see this as a risk-free alternative to choosing either fixed or variable rates. Keep in mind - if you choose to fix part of your loan and leave the other part variable, you will still be locked in because of the fixed portion of the loan.

How to buy with a friend - without killing the friendship or your credit rating Have you ever heard the expression, 'no friends in business'? It's an oldie but a goodie. This is the attitude you should bring when considering buying property with a friend. Many good friendships have gone under the bus, and lots of people have taken a bullet to their credit rating by not giving this decision adequate thought. So what are the risks involved with co-ownership, especially when you purchase with a friend? What if one owner wants to sell? One of the biggest problems with co-ownership is when one owner decides they want to sell the property, but the other owners don't agree. This often ends up in court, and the process can be costly and upsetting for everyone. And needless to say - the friendship probably won't survive. Buying could be harder in the future. It might seem like the dream scenario to invest now with your best friend. But if you decide in a few years to purchase a home to live in, the lender will assess your financial commitments based on the whole loan for the first property, not just the portion that you agreed to cover. This could make it very difficult for you to get another loan. You could be left holding the baby. If something happens and your friend is unable to make their repayments, you could be left in the difficult situation of repaying the entire loan by yourself. Coupled with your other living expenses, you might not be in a position to cover the whole amount yourself. But there are some ways that you can reduce the risk, if you are keen to purchase property with a friend: 1) Put a legal will in place. It's important to make arrangements for what will happen to your assets if you pass away or become incapacitated. 2) Draw up a co-ownership agreement. If you can think about any issues that might possibly come up in the future, and have an agreement in place to solve them, you're less likely to wind up in court trying to work things out. 3) Choose the right structure - tenants in common, or joint tenants. Tenants in common can own a different portion of the property, and they need to specify in their will who will inherit their portion if they die. Joint tenants jointly and equally own the property, and if one person dies, their share automatically goes to the other(s) regardless of the instructions in their will. 4) Choose the right person. It's important to discuss your financial goals and values before you enter into this sort of arrangement. You need to feel comfortable knowing that your friend will be financially secure enough to keep up their end of the bargain - otherwise you might be left trying to cover the repayments alone. It's important to think about your own relationships as well, if your partner is keen for you to buy a house together next year, you might want to think about how this first investment might impact your borrowing power.

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Finance new equipment to generate new income.

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Happy Easter! Wishing you a fun-filled day. Sending Easter blessings your way! May this holiday bring you peace, love, and hope. ๏ธโœ๏ธ

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It seems Australians' love affair with renovating continues to blossom. We forked out more than $28 billion on refurbishments last financial year, with that figure set to jump further over the next three, according to the Housing Industry Association. But when it comes to remodelling, money spent does not necessarily translate to money made. Unfortunately, many renovators get caught up with lifestyle choices and lose sight of the need to add value. Whether you plan to live in, rent out or sell a property, you need to consider it an investment, which means avoiding over-capitalising. The key is to do your homework on local property values, understand your finance and capability limits and stick to them. Sometimes the latter can be easier said than done, so follow our tips to help avoid turning your property into a money pit. Consider being an owner-builder The label is a bit of a misnomer as it implies you will be the one with hammer in hand throughout the job. In reality an owner-builder is essentially a project manager. So the first question you should ask before taking on the task is whether you have time, energy and organisation skills. If the answer to any of these is ๏ฟฝno๏ฟฝ then steer clear and hire a licensed builder to take on the project from start to finish. But if you feel you are up to the challenge, there can be significant savings in being an owner-builder, mainly because you choose the tradespeople and materials and have complete control over the entire project. You can, of course, still work on the project yourself, adding to your savings. Even if you๏ฟฝre not an expert, you might offer to labour for your chosen bricklayer or plasterer, saving time and money. The key to being a successful owner-builder is having time to manage the project properly. You will need time to find the right tradies and materials at the right price, co-ordinate who is on site and when, and answer any questions along the way, all of which can be incredibly taxing. You also need to ensure you have approval from your council and State building authority and relevant insurances in place. A visit to your council is your best starting point for any renovation as they will advise on approval and licensing requirements. DIY vs expert tradies You know we are a nation of would-be DIYers when renovation-based reality TV out-rates most other programs. While it๏ฟฝs tempting to take to the tools to save a few bucks, there are lots of things that can go wrong, which is probably why the TV shows rate so well. Unless you are extremely skilled and have plenty of time, renovating is an area where only qualified experts should dare to tread. Sure, there are some tasks novices can tackle with care ๏ฟฝ pulling up flooring materials, stripping old paintwork, dismantling cabinets and painting ๏ฟฝ but most trades require experience, expertise and, above all, safety. In 2011, a National Injury Surveillance Unit reported more than 25,000 hospital visits due to DIY-related mishaps. At Sydney Hospital๏ฟฝs hand unit alone, they claim to see at least one injury from a power tool every week. Apart from the risk to life and limb, serious injuries can drain your funds, especially if you need to take extended time off work and have no income protection insurance. You may well find what you aimed to save in the first place is soon lost on household bills, sinking you into unforeseen debt. Designing with your head not your heart One of the main reasons we renovate is to improve our lifestyle, which is where many remodels go awry. It might make sense to add an ensuite, which is very likely to add value, but do you need the European bidet and Carrara marble vanity? The answer lies in the demography of your suburb ๏ฟฝ who lives there now and who is likely to be living there in the future. These are the factors that influence property prices and ultimately determine how much you should spend on your renovation. Do your homework on recent sales of similar homes in your area, taking into account the number of bedrooms and bathrooms, which are the key influencers of price. You should also consider water or city views, which tend to push property prices up. You will find property types in your suburb have a price ceiling. Your aim is to ensure your renovation doesn๏ฟฝt push the cost of your property through that ceiling, or else you have over-capitalised. You also need to remember that property cost does not equal property value, which is determined by how much someone is prepared to pay. Consider how long you plan to stay This is a key consideration because time can have a big impact on property prices. If you plan on staying in your renovated home for more than five years you may be able to spend closer to your local property price ceiling than if you were looking for a quick turn-around. That๏ฟฝs because capital gain over those years could eclipse your renovation costs. However, you will also be paying interest on your home loan over that time and when combined with renovating expenses, you may not be as far in front as you had hoped. If you have bought a fixer-upper and are looking for a fast turnaround, you will need to be quite clever and restrained with your project. Focus on elements that will add immediate value (see information below) and avoid unnecessary frills, such as expensive curtains, which may only end up getting replaced by new owners.

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Do you know the difference between how much you 'can' borrow, and how much you 'should' borrow? There might be a very big difference between how much a lender is willing to give you, and how much you can comfortably afford to repay. So how do you work out your real 'should' borrowing capacity? Don't you want to be sure that you can afford to make the repayments on your loan? Lenders will take into account your ability to repay the loan, based on what you earn, how many dependants you have, what your credit rating is, and your declared living expenses. However, lenders only know what you tell them, and there are a few things you need to take into account that might not be considered by a lender when deciding on your borrowing capacity: Job Security How secure do you think your job is? If you've worked for the same company for several years and earn a decent wage, your lender will view this very favourably. But have you been hearing murmurs about a possible restructure? Do you work in a department that could potentially be outsourced offshore? You're in a much better position to assess your job security than a lender is, and you need to be realistic. If you commit to the maximum loan amount and then your role is made redundant, you might struggle to keep up your end of the bargain. Job Satisfaction Your excellent employment history was a definite tick for your lender, but how do you feel deep down about your job? Have you just been hanging on until you can get finance approved? If this is the case, think carefully about how much you should borrow. You might need to take a pay cut early on, if you decide to move into a different line of work. Family Planning You answered 'zero' when asked about your dependants, which contributed to the assessment your lender made when offering you a bumper loan. But what if you were suddenly expecting a child, or if you decide to expand your family a few years down the track? Your Lifestyle You might be able to 'afford' the repayments on a big loan, but what happens when mother's day, your brother's birthday and your car registration all come around at once and you need some extra cash? Or maybe you would like to take a holiday at some stage next year. Don't leave yourself short, or it's going to be a very long 25 to 30 years. Your other goals Would you really love to continue your studies in a few years? Do you dream of taking off for a few months to take the kids around Australia? Don't forget about your other dreams and goals when you work out how much to borrow. You still need to have a life, and some things are more important than having a spare room for your shoe collection.

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Do you have a big ticket item you would like to purchase but aren't sure the best way to do it? There are many different ways we can buy things - some better than others. There are also some that can end up costing you way more than you might realise. To give you a few new ideas, please have a look at my short "9 Ways to Pay for My Racehorse (or holiday, pool, car ...)" PDF article. https://www.mortgageaustralia.com.au/email/files/9waystopayformyracehorse.pdf

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Over 55% of Australian borrowers (including 65% of first home buyers) choose to use mortgage brokers to secure their loans. https://www.afgonline.com.au/broker/keep-competition-alive/

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Discover the pros and cons of each type of home loan: There are literally hundreds of home loans available, with new products emerging all the time. A professional Mortgage Broker can recommend a loan for your particular needs, help you to complete the paperwork, professionally package it with your supporting documents and submit it to your chosen lender. If you want to do some homework first, pop your details into the clever loan option tool or work out monthly or fortnightly repayments with the calculators on our website. When you're ready, get in touch with me to discuss the next steps. Here's a snapshot of the main types of home loans and some of their pros and cons. A) Variable Standard variable loans are the most popular home loan in Australia. Interest rates go up or down over the life off the loan depending on the official rate set by the Reserve Bank of Australia and funding costs. Your regular repayments pay off both the interest and some of the principal. You can also choose a basic variable loan, which offers a discounted interest rate but has fewer loan features, such as a redraw facility and repayment flexibility. Pros - If interest rates fall, the size of your minimum repayments will too. - Standard variable loans allow you to make extra repayments. Even small extra payments can cut the length and cost of your mortgage. - Basic variable loans often don't come with a redraw facility, removing the temptation to spend money you've already paid off your loan. Cons - If interest rates rise, the size of your repayments will too. - Increased loan repayments due to rate rises could impact your household budget, so make sure you take potential interest rate hikes into account when working out how much money to borrow. - You need to be disciplined around the redraw facility on a standard variable loan. If you dip into it too often, it will take much longer and cost more to pay off your loan. - If you have a basic variable loan, you won't be able to pay it off quicker or get access to money you have already repaid if you ever need it. B) Fixed The interest rate is fixed for a certain period, usually the first one to five years of the loan. This means your regular repayments stay the same regardless of changes in interest rates. At the end of the fixed period you can decide whether to fix the rate again, at whatever rate lenders are offering, or move to a variable loan. Pros - Your regular repayments are unaffected by increases in interest rates. - You can manage your household budget better during the fixed period, knowing exactly how much is needed to repay your home loan. Cons - If interest rates go down, you don't benefit from the decrease. Your regular repayments stay the same. - You can end up paying more than someone with a variable loan if rates remain higher under your agreed fixed rate for a prolonged period. - There is very limited opportunity for additional repayments during the fixed rate period. - You may be penalised financially if you exit the loan before the end of the fixed rate period. C) Split rate loans Your loan amount is split, so one part is variable, and the other is fixed. You decide on the proportion of variable and fixed. You enjoy some of the flexibility of a variable loan along with the certainty of a fixed rate loan. Pros - Your regular repayments will vary less when interest rates change, making it easier to budget. - If interest rates fall, your regular repayments on the variable portion will too. - You can repay the variable part of the loan quicker if you wish. Cons - If interest rates rise, your regular repayments on the variable portion will too. - Only limited additional repayments of the fixed rate portion are allowed. - You will be penalised financially if you exit the fixed portion of the loan early. D) Interest only You repay only the interest on the amount borrowed usually for the first one to five years of the loan, although some lenders offer longer terms. Because you're not also paying off the principal, your monthly repayments are lower. At the end of the interest-only period, you begin to pay off both interest and principal. These loans are especially popular with investors who plan to pay off the principal when the property is sold, having achieved capital growth. Pros - Lower regular repayments during the interest only period. - If it is not a fixed rate loan, you have the flexibility to pay off, and often redraw, the principal at your convenience. Cons - At the end of the interest only period you have the same level of debt as when you started. - If you're not able to extend your interest-only period, you could face the possibility of increased repayments. - You could face a sudden increase in regular repayments at the end of the interest-only period. E) Line of Credit You can pay into and withdraw from your home loan every month, so long as you keep up the regular required repayments. Many people choose to have their salary paid into their line of credit account. This type of loan is good for people who want to maximise their income to pay off their mortgage quickly and/or who want maximum flexibility in their access to funds. Pros - You can use your income to help reduce interest charges and pay off your mortgage quicker. - Provides great flexibility for you to access available funds. - You can consolidate spending and debt management in a single account. Cons - Without proper monitoring and discipline, you won't pay off the principal and will continue to carry or increase your level of debt. - Line of credit loans usually carry slightly higher interest rates. F) Introductory/Honeymoon Originally designed for first-home buyers, but now available more widely, introductory loans offer a discounted interest rate for the first six to 12 months, before the rate reverts to the usual variable interest rate. Pros - Lower regular repayments for an initial 'honeymoon' period. Cons - Loans may have restrictions, such as no redraw facilities, for the entire length of the loan. - You may be locked into a period of higher interest rates at the expiry of the honeymoon period G) Low doc Popular with self-employed people, these loans require less documentation or proof of income than most, but often carry higher interest rates or require a larger deposit because of the perceived higher lender risk. In most cases you will be financially better off getting together full documentation for another type of loan. But if this isn't possible, a low doc loan may be a good option to secure the funds you need. Pros - Lower requirement for evidence of income. - May overlook non-existent or poor credit rating. Cons - You will probably pay higher interest than with other home loan types, or may need a larger deposit, or both.

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Are a few unfamiliar words stopping you from building wealth? Are you thinking about dipping your foot in with property investment, but don't really know where to start? There is a lot of information out there, but many first-time investors become overwhelmed by all the technical stuff. Don't panic though - here is a list of some of the most common phrases to do with property investment - and they have been de-mystified for you. Capital gain Capital gain occurs when the property increases in value, over and above what you paid for it, and what you have spent on repayments, improvements and additional costs. So if you purchased a property for $200,000, and you spent $40,000 on improvements, and $50,000 on repayments - then you sold the property for $350,000, your gross capital gain would be $60,000. Equity Equity is the difference between what you owe on your loan, and how much your property is worth. You can build equity by investing in property that is likely to increase in value, while you work to reduce your loan amount. If you purchase a property for $300,000 and you put down a $30,000 deposit you would owe $270,000. Therefore you have $30,000 equity in the property. Investment Strategy Your investment strategy is the plan that you make, taking into account your financial goals. Are you looking for a way to get a quick win - and only plan to focus on short term gain? Or are you looking to build an investment portfolio over a number of years or decades? This could be something to discuss with your accountant or financial planner, as well as your mortgage broker. Interest only loans Interest only loans allow you to borrow money and only repay the interest for a specific period of time. Usually the interest only period lasts from 1 to 5 years. These loans are helpful if you're focussing on short term gain, and plan to sell the property within the first few years. Introductory rate loans 'Honeymoon rate' loans offer a lower interest rate for a short period at the beginning of the loan, before you return to standard variable interest rates. These loans can be attractive for owner builders, or those planning to achieve a short term gain on their investment. The lower repayments mean that you could pay more off your loan balance in the short term. Line of credit A line of credit is a pre-approved amount of money that you can borrow when you need it - either as a lump sum or in small portions. This option is popular with experienced investors, who are always on the lookout for their next property purchase, and need to be able to move quickly. Redraw facility A redraw facility allows you to make extra repayments against your loan, and then take the money back later if you need it. This is a great feature for people buying and selling multiple investment properties. All in one accounts All in one accounts are designed so that all of your income goes to the one place, and the account is used for your loan as well as all of your expenses. Because everything goes into this account, the amount that you owe will be reduced. Be sure to look into all of the fees involved with this option. Offset account An offset account is a savings account linked with your loan which reduces the interest you pay. Your lender will take your savings into account and deduct this figure from what you owe before calculating your interest. Construction loans If you're building a home and you don't need to borrow the full amount upfront, a construction loan allows you to only pay interest on the amount that you have spent. Bridging finance Bridging finance is designed to help you purchase one property before you sell the other. Once you sell the old property, the funds are paid straight into the loan for the new property. The danger here is, if you don't sell the old property as quickly as you thought, you will be responsible for servicing a much larger loan. Of course, there's so much more to think about when you start looking for an investment property. But armed with some of the lingo - you will be an expert in no time.

๐Š๐ž๐ฒ๐ฌ ๐ญ๐จ ๐”๐ง๐ฅ๐จ๐œ๐ค ๐˜๐จ๐ฎ๐ซ ๐ƒ๐ซ๐ž๐š๐ฆ ๐‡๐จ๐ฆ๐ž! ๐Ÿ‡ฆ๐Ÿ‡บ ๐“๐ก๐ข๐ง๐ค๐ข๐ง๐  ๐š๐›๐จ๐ฎ๐ญ ๐›๐ฎ๐ฒ๐ข๐ง๐  ๐ฒ๐จ๐ฎ๐ซ ๐Ÿ๐ข๐ซ๐ฌ๐ญ ๐ก๐จ๐ฆ๐ž? NRG Financial Services is here to assist and support you every step of the way in your financial planning journey. Our team will help you: โœ… Establish realistic goals and a budget that suits your needs and lifestyle. โœ…Understand ๐ฆ๐จ๐ซ๐ญ๐ ๐š๐ ๐ž ๐จ๐ฉ๐ญ๐ข๐จ๐ง๐ฌ and find the best fit for you. ๐ƒ๐จ๐ง'๐ญ ๐ง๐š๐ฏ๐ข๐ ๐š๐ญ๐ž ๐ญ๐ก๐ž ๐ก๐จ๐ฆ๐ž ๐›๐ฎ๐ฒ๐ข๐ง๐  ๐ฃ๐จ๐ฎ๐ซ๐ง๐ž๐ฒ ๐š๐ฅ๐จ๐ง๐ž! Contact Tim Jennings today on ๐Ÿ๐Ÿ‘๐ŸŽ๐ŸŽ ๐Ÿ–๐Ÿ“๐Ÿ— ๐Ÿ–๐Ÿ๐Ÿ“ or visit our website NRG Financial Services: ๐˜„๐˜„๐˜„.๐—ป๐—ฟ๐—ด๐—ณ๐—ถ๐—ป๐—ฎ๐—ป๐—ฐ๐—ถ๐—ฎ๐—น๐˜€๐—ฒ๐—ฟ๐˜ƒ๐—ถ๐—ฐ๐—ฒ๐˜€.๐—ฐ๐—ผ๐—บ.๐—ฎ๐˜‚ for a free consultation. #FirstHomeBuyer #FinancialPlanning #NRGFinancialServices #Australia

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Can you live as One Big Happy Family? More Australian families are moving in with parents or in-laws in a bid to stake their claim in the property market and save everyone a bundle along the way. Multi-generational housing has risen by more than 60 per cent over the past three decades, according to a 2013 report by the University of NSW City Futures Research Centre. With property prices escalating and new land at a premium in most major capital cities, more families are deciding to pool their resources and take up digs together. While not for every family, there are clear benefits to kids, parents and grandparents bunking in, not least of them being big savings. Already more young adults are living at home longer to stave off the increasingly high costs of independent living, save for travel or squirrel away a deposit to buy their own place. And while that arrangement probably suits the adult child more than mum and dad, the concept of multi-generational living tends to have more mutual perks. The oldest generation, for example, might be looking to down-size and make their superannuation go further without compromising their lifestyle, while their children might want to step up to a bigger property in a better location. Together, they are able to meet their financial and lifestyle goals. Advantages: Savings for all One of the most obvious benefits of families sharing a property is greater buying power. Naturally the property needs to be big enough to cater to a large number of people (and they can be difficult to come by) but once economies of scale kick in, families who combine their funds can usually pick up a higher calibre of property than if they were on their own. Sharing families who can๏ฟฝt find the home they need may choose to build their own or renovate an existing one. Some are opting for a duplex-style arrangement where a wall splits the home in two to create entirely separate living areas with separate entrances. Designed properly, the property can maintain its Residential A zoning without attracting all of the red tape and costs associated with developing a proper duplex. Check with your local council what rules apply for your property. Whether you build or buy, the savings can stack up in terms of loan repayments and rates and utilities, providing there are sound agreements in place for splitting expenses (see tips). Extra care Another advantage of multigenerational living is built-in childcare, providing it is mutually agreeable. Grandparents are often willing to help out with children, which can help tally up further savings or create greater flexibility for busy working parents. Even if children don๏ฟฝt require fulltime day care, having a grandparent on hand for school pick-ups or extra-curricular activities can help ease stress on the family dynamic. And it may not be just children who require the care. Some families choose to live together to provide emotional or physical support to an aging parent who may be struggling to maintain their independence. Fringe benefits Although probably not top-of-mind for co-located families, there are plenty of incidental benefits when generations reside together: There is someone on hand to care for plants and pets when one family goes away. Senior residents can attract discounts on home insurance and improve security if home most of the time. Old and new skills can be passed between generations ๏ฟฝ for example, grandkids can teach grandparents about technology, while grandparents might teach grandkids how to cook an old- fashioned favourite. Many families report increased respect and understanding between generations. Tips for multi-generational living Although there are many advantages to multiple generations living under one roof, the arrangement is not without its challenges. Prior planning and plenty of ongoing, respectful discussion are often required to help things run smoothly. Here are some tips on what to consider to help ensure the situation doesn๏ฟฝt get too close for comfort. Discuss what each party expects to get out of the situation so there๏ฟฝs agreement from the outset. Get legal and financial advice and ensure there are agreements in place to avoid any grey areas over who pays for what when establishing the home ๏ฟฝ buying or building ๏ฟฝ and for all ongoing expenses, such as groceries and household bills. Be clear about responsibilities so each family member understands what jobs are expected of them. Establish a routine for meals ๏ฟฝ who cooks, when the family eats and whether everyone eats together. Set up rules for privacy to instil boundaries if needed ๏ฟฝ grandkids, for example, might be asked to give a grandparent some time out after dinner. Consider whether holidays and outings involve all family members or just some, and try to make plans well in advance so there are no surprises, clashes or confusion. Grandparents should be clear from the get-go about how much they wish to be involved in caring for grandchildren. Make time to discuss how the situation is tracking for everyone involved so any grievances can be aired productively.

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You're a parent whose grown up kids want to buy their first home. And because you want the best for them, you probably also want to ensure that they get the correct advice before they sign anything. A truer word has never been spoken. ...and I think the best start for first home buyers is to talk through their options with someone who has done it before as well as someone who is directly involved with the process every day. If you are a parent whose children have grown up, you've probably bought a home before. I'm helping people buy their home every day, it's my job. This means, together, we are well qualified to point your young adults in the right direction when it comes to buying their first home. So, why don't we catch up with your kids and discuss their options together. Between us, we should be able to provide helpful advice and motivation along the way. I provide home loans for just about everyone and every situation so why not try me out? It doesn't usually take long and the privacy act ensures our conversation is entirely confidential. A cuppa and a chat. It could be as simple as that.

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Bridging finance vs deposit bonds - avoid financial distress by learning the difference: Have you decided to purchase a new home before your existing home is sold and settled? Bridging finance might be an option for you - but beware - there are some pretty big risks involved. Bridging finance allows you to purchase a new home while your old home is not yet sold. As the name suggests, this sort of loan will 'bridge the gap' between two properties by financing both for a short period of time. The loan is secured by the old property and the new property, and the rates are similar to normal variable home loans. In the past, bridging finance was more like a personal loan with high interest rates. This sort of loan is often available with your current lender which is a much easier option than switching the loan to a new lender for a short period of time. Dangers to be aware of... Your property might not sell as quickly as you thought, and once your new property settles you will be left trying to cover the cost of a double loan. Obviously this is not ideal, especially if you're upgrading to a more expensive property. There are plenty of borrowers who have lost the lot or had to borrow from friends and family due to being unable to meet their repayments while they wait for the old home to sell. Your property might not sell for the price that you imagined, which could leave you further in debt, with less equity in your new property. You probably spoke with a few selling agents about the price that you can expect to see for your home, but the real estate market isn't always predictable. Sometimes selling agents will give a generous assessment in order to get the listing, and then bring you back down to earth later when you start receiving offers. You might feel pressured to accept a lower offer than what you could have realistically achieved, because you need to sell your home as soon as possible. The simple alternative would be to sell your home before you buy another, which will save you from spending more than what you can afford, because you already know how much your selling price will be. In this instance, bridging finance could be a sound option because you know that your property has already sold. Deposit bonds - the alternative... Deposit bonds are a guarantee that you will pay the deposit at settlement of the property. The issuer of the bond guarantees that they will pay the vendor the deposit at settlement if you default on the purchase. They can do this because they will pursue you for the deposit - so if you don't go through with the sale you will still lose your deposit. Deposit bonds usually cost about 1% of the deposit amount and can be purchased through most lenders or real estate agents. These are a great alternative if you want to attend auctions but you don't have the money in the bank because your property hasn't settled yet. They are also useful for people who are awaiting settlement on their existing property but the deposit has not been released by the purchaser.

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If you are applying for your first home loan - here is the pain free alternative: The first time you apply for a loan, you could feel a bit like a deer in the headlights. With so many questions to answer, you might start to wonder if your mortgage broker is hatching a secret plot to kidnap you and steal your identity. Understanding what lenders are looking for can help to make the process easier for you, and improve your chances of being approved for a loan. There are five 'C's when it comes to lending... Credit History Your credit record can have a big impact on whether you're approved for a loan. Your lender will want to know about money that you have borrowed in the past, and how quickly you paid it back. Credit cards, phone bills, car loans and many other sources of credit are examined when determining your credit rating. Capital Your lender will want to know that you have assets and funds accumulated. Particularly, they will want to know how much you will be contributing to the purchase. Collateral You will need to offer property as security against your loan. Usually this just means that you offer the house as security, so that if you don't repay the loan, your lender can sell the property to get their money back. Capacity Your lender will assess your ability or capacity to meet repayments. This is done by examining your income and financial commitments such as living expenses, other loan repayments and dependants to determine if you are capable of servicing the loan. Character The lender will also take into consideration other details about you, such as your working history and length of employment, how long you have lived in your current residence, and any other available information that might help to determine your suitability for a loan.

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6 Tips to Avoid a Bad Purchase: You searched the web for properties that fit your criteria, and one in particular caught your attention. The photographs paint a lovely picture, and the agent swears that this one is something special. But before you get to the open house, be sure to take a moment and remember that you have a job to do... 1. Ignore the trimmings It's easy to be romanced by the lovely scented candles, flat screen television or pricey bedspread, but the reality is - you're not shopping at a department store. This is an important purchase, and when the designer furniture is removed from the house you don't want any surprises. Make an effort to look past the decorations and really notice the layout, condition, features and drawbacks. 2. Look up, and all around Take a good look at the ceilings and walls - water damage and leaks can be costly to fix, but the good news is that usually they are difficult to hide as well. Try to use all of your senses and be on the lookout for smells and sounds that might indicate a problem with the property. 3. Check out the neighbours Your grandparents would probably tell you to buy the 'worst house on the best street'. There's a lot to be said for location, and part of the formula is to be surrounded by neighbours who maintain or improve their properties. Try introducing yourself to the neighbours and see what you find. If the elderly lady next door says "I'm glad they decided to sell that house - we need new fences and they won't pay up" you might like to leave some room in your budget! 4. What's most expensive to fix If the kitchen and the bathroom are a lovely shade of brown and you would like to renovate as soon as possible, make sure you can afford it. These are usually the most expensive rooms to improve, and you need to know what you're in for. If in doubt, ask a tradesman to inspect the property with you before you make an offer. 5. Ask lots of questions It pays to ask plenty of questions - a great one is 'why are they selling?' If you have twins on the way, and the agent says 'they want to have another baby', you might like to consider whether the property is big enough for you. It's also a great idea to ask how much the current owners are paying for their utilities. Some houses, by design, tend to generate very large heating and cooling bills, so these are all important considerations. 6. If in doubt - organise a building and pest inspection Unless you really know what you're looking at, it always pays to arrange a building and pest inspection. This can be added as a condition when you make an offer on the property. If the vendor is not willing to allow an inspection, you might like to run screaming down the street before making a very costly mistake.

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Speak to me about finance for your greener home.

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How to negotiate on price and knock out the competition: All's fair in love and war, and the same might be said for negotiating with real estate agents. Whilst you want to get the best possible deal on your purchase, the agent is responsible for getting the best possible price for their client - the vendor. Depending on how long you have been looking, you might be tempted to just pay the asking price to free up your Saturday mornings again. But just think - how much sooner could you pay your loan off if you saved tens of thousands on the purchase price? If you want to get the best deal on your property purchase, try these 6 tips: Focus on positives all around.The best way to negotiate is for every party to feel like they won the game in some way. Communicate clearly and develop a rapport with the selling agent. Don't try to pick holes in the property. Do your homework. If you want to be able to negotiate on price, you need to have a good idea of what similar properties in the area have sold for in the past couple of months. You should walk through plenty of open houses and keep a close eye on the sold results for your area. (If the selling agent offers to give you a list of sold results, accept politely but do your own research because they will probably choose the highest prices to help in their negotiation with you). Don't try to buy outside of your price range. If a property is advertised at $500k to $550k, and your budget is $450k, don't waste your time.You will only destroy your credibility if the right property comes up with that selling agent in the future. Try to find out what the vendor's motivation is for selling. If they need a quick sale, or if they require a certain settlement period, this could help you to negotiate a deal that works for everyone.By including something in your offer that sweetens the deal, this could put you ahead of other buyers in the race. Timing is everything. Some would advise that it's best to make the selling agent chase you as much as possible. But depending on the area, you might have a win by putting your offer in early. In areas with slow property sales, a vendor might be shocked to receive an offer in the first few days on the market.If you make your offer valid for only a day or two, the vendor will need to decide whether they wait and hope that someone else will come along, or whether they accept your offer for a quick sale.

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Your Perfect Match - How to find a loan that keeps you warm at night. Do you find that you're usually attracted to the same type of person? We all have a mental image of our perfect mate - some people are even lucky enough to wake up next to that person each day. Just as the dating market can be tricky to navigate, it's easy to miss the signs and find yourself attracted to the wrong home loan. To help you find a loan that loves you unconditionally, here is a quick run-down of the different types available. Basic Loan The basic home loan usually doesn't have a lot of fees. What you see is what you get. Usually you get a low interest rate, but you don't get much else. If you want some features, and flexibility this might not be the match made in heaven. Introductory Rate loan Otherwise known as a 'Honeymoon loan' this one is a bit like some new relationships. You get a really good deal at the beginning, and everyone is happy. After a year or two the honeymoon is over, and you find out what the loan will really cost you. A good option if you want to keep your repayments down in the beginning - but make sure you investigate the interest rate that you will be charged after the introductory period. Standard Variable rate loan For those who want to be able to pick and choose their features, the standard variable rate loan could be your perfect mate. You generally get a low interest rate, but the flexibility to select some options that suit your needs. Low-doc Loan A low-doc loan is a good alternative for Self-Employed borrowers who are often unlucky in love when it comes to finding their ideal mortgage. Low-doc loans allow you to use different methods of proving your income. The rules are usually a little less restrictive - but you will pay a much higher rate. On top of this - most lenders require self-employed borrowers to contribute a 20% deposit, and cover all upfront costs such as Stamp Duty and Lenders Mortgage Insurance (LMI). This is a good option for people who don't have any other options. 100% home loan Also known as a 'No-deposit' loan, this one allows you to borrow 100% of the purchase price. Don't be fooled though - this is not a free ride. Most lender still require you to save a 3% deposit to cover the LMI, and you'll also need to make sure that you have enough left over to cover stamp duty, moving costs and conveyancing - and any other associated costs. Sometimes these loans are available, sometimes they are not, it depends on the current lending environment - but it never hurts to ask.

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It's time to take control of your finances! Refinance with NRG Financial Services! โœ… Lower your monthly payment and free up some cash flow. โœ… Shorten your loan term and pay off your home loan sooner. โœ… Access cash to consolidate debt, make renovations, or achieve your financial goals. We work hard to secure you the best possible interest rate and save your money every month. Contact us: 1300 859 815. Visit our website at www.nrgfinancialservices.com.au.

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Now you can buy with a little help from your friends: We all know that Australia's housing market is one of the least affordable in the world. Housing affordability is affected by many factors including slow land releases and restrictive development regulations (both likely to persist for some time). An increasing number of Australians are turning to co-ownership as a solution. To discover some of the benefits (and how to avoid the pitfalls) from entering into a co-ownership arrangement, download my free guide - "You can buy with a little help from your friends"?. https://www.mortgageaustralia.com.au/email/files/buywithalittlehelpfromyourfriends.pdf

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Will a new vehicle jump-start your earnings? It๏ฟฝs always important to take stock and consider whether the purchase of new assets or equipment will benefit your business. Asset finance is often the answer. Financing new equipment, instead of purchasing it outright, can be a good way to preserve cash flow and working capital while adding an asset that can begin to generate immediate income. And, of course, there may be potential tax advantages that could also come your way.

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Fixed rate home loans - are you paying a fortune for peace of mind? Are you a planner? Do you like to organise things in advance, and enjoy the security of knowing what the future holds in store? Do you take a comprehensive list with you to the supermarket? Well a fixed rate loan might be your perfect fit. Fixed rate loans are: Great for managing a tight budget... Fixed rate loans are an excellent option for anyone who is operating on a very tight budget. If an extra fifty dollars per week would mean choosing whether to feed your children, or put petrol in the car - this is probably the loan for you. Great for peace of mind... If you opt for a fixed rate loan, you will know exactly how much your repayments will be for the duration of the fixed period. Many lenders offer up to 10 years on their fixed rate loans, so this could give you substantial peace of mind. Fixed rate loans can save you money... If interest rates increase during the time when your rate is fixed, you will be immune. When everyone else is complaining about having to give up their daily coffee, you're safe in the knowledge that your repayments aren't going to change. On the flipside though... You will forfeit your chance to pay a reduced interest rate if the Reserve Bank rate is lowered. When other borrowers are enjoying a well-earned reprieve, you will still be making the same repayments. This can represent a significant cost to you if interest rates drop by half a percent or more. Less flexibility If you choose to fix your rate, you get security at the expense of flexibility. You probably won't be able to change the features of your loan during the fixed period, and most lenders don't allow you to make any lump-sum repayments when your rate is fixed. It's critical that you take the time to research the different loan options available to you, and ask plenty of questions to ensure that the loan you choose is the best option for you. For many borrowers, fixed rate loans are an excellent choice to help you manage your budget and plan for the future.

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Fixed rate home loans - are you paying a fortune for peace of mind? Are you a planner? Do you like to organise things in advance, and enjoy the security of knowing what the future holds in store? Do you take a comprehensive list with you to the supermarket? Well a fixed rate loan might be your perfect fit. Fixed rate loans are: Great for managing a tight budget... Fixed rate loans are an excellent option for anyone who is operating on a very tight budget. If an extra fifty dollars per week would mean choosing whether to feed your children, or put petrol in the car - this is probably the loan for you. Great for peace of mind... If you opt for a fixed rate loan, you will know exactly how much your repayments will be for the duration of the fixed period. Many lenders offer up to 10 years on their fixed rate loans, so this could give you substantial peace of mind. Fixed rate loans can save you money... If interest rates increase during the time when your rate is fixed, you will be immune. When everyone else is complaining about having to give up their daily coffee, you're safe in the knowledge that your repayments aren't going to change. On the flipside though... You will forfeit your chance to pay a reduced interest rate if the Reserve Bank rate is lowered. When other borrowers are enjoying a well-earned reprieve, you will still be making the same repayments. This can represent a significant cost to you if interest rates drop by half a percent or more. Less flexibility If you choose to fix your rate, you get security at the expense of flexibility. You probably won't be able to change the features of your loan during the fixed period, and most lenders don't allow you to make any lump-sum repayments when your rate is fixed. It's critical that you take the time to research the different loan options available to you, and ask plenty of questions to ensure that the loan you choose is the best option for you. For many borrowers, fixed rate loans are an excellent choice to help you manage your budget and plan for the future.

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In today๏ฟฝs new car market, we are seeing low rate finance deals being offered by an ever increasing number of car dealers. Rates as low as 0% have been available in recent times. Before you rush out and sign on the dotted line, it๏ฟฝs important to understand what is happening behind the scenes. Click here to download my inside scoop on "Low interest car finance - is it really what it seems?" https://www.mortgageaustralia.com.au/email/files/lowinterestcarfinance.pdf

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There is no better time to get your finances in order than when you are upgrading your home. Get it wrong and you will pay thousands of dollars more than you need to. Use this free guide to help you make the right choice: https://www.mortgageaustralia.com.au/brokervbank.pdf

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Finally - your survival guide to a joint bank account: It's the one proposal that never appears in romantic movies. It doesn't involve a big diamond, and it won't lead you down a flower-adorned aisle to the tune of 'the wind beneath my wings'. For some, it's an exciting affirmation that the relationship is becoming more serious. For others, it can be a disaster waiting to happen. So 'what's this proposal?' you ask. It goes a little something like this... "Honey, do you want to open a joint bank account?" 10 little words that will either melt your heart, or have it beating double time in sheer panic. So how do you avoid joint account disaster? Is it ever a good idea to entwine your finances? Like many other financial decisions, this one is best served with a healthy dose of discussion, and some planning. It's crucial to compare notes early on, and ensure that you're both on the same page when it comes to matters of the wallet. Clear the air One of the biggest relationship-killers is money. Some people feel that money is a necessary evil, something that comes and goes, pale in comparison to experiences and relationships. Other people see money as a means to achieving freedom and happiness, and have clear financial goals in mind. You might be very compatible in many ways, but it's possible that you have very different attitudes about money. It's important to have some open discussions about your financial situation before you open a joint account. Plan a budget Discuss what your joint account will be used for. Many couples have a joint account for the rent and household bills, and they each deposit an agreed portion of their pay. The remainder stays in personal accounts to be used for savings, leisure or personal shopping. It's important that both parties are clear about which expenses can be paid out of the joint account. This will avoid arguments when one party tries to pay the gas bill, only to find that their partner has withdrawn that money for a friend's birthday present. Sharing is caring It might be a difficult topic, but this is the time to be honest about what you have, what you owe and what you earn. If one partner earns significantly more than the other, you will need to work out whether you both deposit the same amount into the account every month. If one partner has significant debts, it's vital to get this out in the open to avoid problems down the track. With a bit of planning and some candid conversations, your relationship can survive the joint account challenge.

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For the more adventurous - here is a guide to investing in Commercial Property. When mum and dad investors consider property, most look no further than the residential market. While homes and apartments may be seen as simpler and safer options, many investors are prepared to defy tradition and set their sights on the commercial sector. Commercial property differs to residential, but with the right understanding of the key drivers, it need not be more complex. How does commercial property differ to residential? Firstly, commercial property attracts GST on the purchase price and the rent received, unlike residential real estate, which remains GST-free on both fronts. An exception to this may be where the property is acquired with an existing lease in place. In this case, the vendor may be able to treat the sale as a 'GST exempt sale of a going concern' (refer www.ato.gov.au). Commercial properties also usually attract higher yields - seven to eight per cent on average, compared to half that for the residential market. But the higher returns are often offset by the bigger risk of longer vacancy periods, which is why choice of property is paramount.* On the up side, commercial tenants tend to take much longer leases than domestic renters, providing a stable financial footing for your investment. Another distinction is who pays for property upgrades. In the residential sector, owners foot the bill for maintenance, repairs and improvements, while tenants usually cover the cost of refurbishments to suit their particular enterprise. The right property With retail outlets, offices and industrial estates all sitting at the heart of our economy, it can be hard to decide which type of commercial property to invest in. Many first-time commercial investors are business owners looking to end the rent cycle and acquire an asset at the same time. If you don't own your own business, a good starting point is to consider the same principles that apply to residential investment. Look for properties in growth sectors in areas with low vacancy rates. A drive around any light industrial estate, CBD or retail strip will quickly reveal the 'for rent' signs and give you a pulse check on local supply and demand. You should also consider local infrastructure, such as transport, and even commercial entities that may be a drawcard for others. In the retail sector, a big brand name with a long-term lease (called an anchor tenant) can be the attraction for smaller operators looking to cash in on the high foot traffic the big name will generate. Commercial tenants also look for properties with high visibility, easy access and plenty of parking, especially if there is no public transport nearby. If looking at a light industrial property or office complex in a commercial estate, check it is not in a flood zone. Some commercial complexes are built in low-lying areas at risk of riverine or flash-flooding. Flood cover is not always offered on commercial properties and can be costly when available, so assess the risk thoroughly before you invest. Commercial property agents will happily help you with the property hunt. Keep in mind their job is to sell, so make sure you do your own homework on values, vacancy rates, average rents and potential tenants for any property put forward. Another helpful starting point is your mortgage broker. They can help you work out your budget based on your existing loans and financial arrangements and find a loan product suitable for your circumstances. The right tenants Attracting the right tenants is the key to successful commercial investment. Concerned by the potential for long vacancy periods, commercial property investors often snap up the first tenant who comes along. Take time to research whether the applicant is in a viable sector with strong demand or a waning one. While you can lock any tenant into a three-year lease, an insolvent business will not be able to pay the rent, no matter how many demands you place on it. On the other hand, a flourishing business with a strong track record may request a longer term lease in some cases up to 10 years. You may even be able to request a bank guarantee for the term of the lease. * The information contained in this article does not constitute either financial or taxation advice. We recommend you speak with your financial advisor, and as taxation legislation is complex, you should consult a tax advisor or contact the ATO for further details and expert advice in relation to your personal circumstances.

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A wise person once said: failing to plan is a plan to fail. As probably the most significant purchase of your life, saving for a home definitely takes prior preparation and planning! - How much can I afford? You may have a dream home in mind but you first need to work out if you can afford it. There are many factors that feed into our decision around what to buy and where - proximity to work and family and our stage of life are just a few - but the single biggest decider is nearly always what we can afford. It's really a case of looking at the big picture and working your way back from there. Consider your household income and what you realistically can afford in loan repayments, taking into account all of your expenses. As a guide a mortgage calculator can be a great place to start, but it won't take into account all of your personal circumstances or eligibility for a loan so talk to your local Mortgage Broker to get your plan underway. https://www.moneysmart.gov.au/ - How much do I need for a deposit? Ideally, you should start with a 20% deposit to avoid paying lenders mortgage insurance (LMI). This is a one-off insurance payment charged by lenders to those borrowers who are considered a higher financial risk. Your risk is determined by your loan to value ratio (LVR), which is the amount you wish to borrow divided by the lender's valuation of the property you wish to buy. Lenders generally like to have at least a 20% buffer so if you have to default on the loan, they stand a good chance of recouping the loan amount through the sale of your property.. Although LMI can add several thousand dollars to property purchase costs, many borrowers consider it a worthy investment to help secure a loan with a lower deposit. The critical factor is whether your income can support the higher loan repayments. Ask your broker for an LMI estimate based on your financial situation before deciding how much you need for your deposit. - Saving for a deposit: Working out how much you need for a deposit can be fairly easy compared to actually saving for it. Sacrifices are generally in order!. ?Budget cuts The best place to start is a budget. Review all of your expenses, including day-to-day costs like lunches, coffees and transport, and your bigger bills, such as rent and electricity. Don't forget to also include any annual bills such as car insurance and registration, which can sabotage your savings. Then it's times to get a little ruthless and look for ways to cut back on costs. Here are just a few ideas: - Make your lunches. - Dine in, not out, with friends. - Ditch the gym membership and start exercising outdoors. - Make a list for your groceries and stick to it. - Save, don't spend, your tax return and/or salary bonus. https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/mortgage-calculator

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Switching home loans could help pay down your mortgage sooner, providing you are refinancing for the right reasons and understand what๏ฟฝs involved. Here๏ฟฝs our guide to refinancing to help you make the right move when the time comes. Know the costs: Paying 0.5 per cent less per annum on a $250,000 principal-and-interest mortgage could save you around $23,000 over the life of a 25-year loan. That๏ฟฝs a sizeable chunk of change back in your pocket over the long term, but there are usually up-front costs associated with switching loans, especially if moving to a new lender. Know the costs of exiting your current mortgage loan before switching. Depending on the type of variable rate loan you have, the lender may apply fees if you choose to bow out. If you are on a fixed rate loan, a cost will usually apply when paid ahead of the agreed timeframe. You should also factor in any set-up costs for your new loan, which can be several hundred dollars, and any ongoing account fees. Only once you have factored in all of the associated costs will you be able to assess whether you gain financially by refinancing, and that๏ฟฝs where we can help you make the right decision. Compare products and service: A lower interest rate is a great reason to switch but it shouldn๏ฟฝt be the only deciding factor. Make sure the new loan is flexible enough to meet your needs and help you get ahead as quickly as possible. Some benefits to consider: Can you make fortnightly repayments? You could pay off your loan quicker making payments every two weeks instead of monthly. Can you make lump sum payments? Any extra repayments above and beyond your regular schedule will shave dollars and time off your loan. Does the new loan offer a redraw facility? It๏ฟฝs great to stash extra cash in your mortgage to pay it down quicker but if you think you may need it back at some point, make sure your new loan lets you access those excess funds. To fix or not to fix? We๏ฟฝre still enjoying low interest rates on the back of the historic lows the Reserve Bank of Australia cash rate is at, but make sure with any change you consider you have some wriggle room for if rates do rise. Make sure you๏ฟฝre future๏ฟฝproofing at every turn. What features are important to you and think about the ones you could do without. Why pay for the bells and whistles attached to a loan if you don๏ฟฝt use them? Different features when it comes to technology, service and availability rank differently for everyone, so figure out what๏ฟฝs important to you and we๏ฟฝll help you match it with the right product and the right lender. Working with us to sharpen the pencil. Just one of the benefits of having us on side when it comes to your finance is our ability to work with the right lenders on the right price when it comes to things like your rate and your ongoing fees. Switch to save: Many borrowers refinance to consolidate debts, bundling credit card balances, personal loans or car payments into their mortgage, which usually carries a much lower interest rate. The benefit is lower minimum payments on your debts overall, which can be a benefit for cash flow. But that doesn๏ฟฝt mean you are saving on your home loan. Try to make the most of the lower rate to knock down the total debt quicker so you are not simply adding to the duration of your mortgage. And make sure you cancel any credit cards once you have transferred the balances into your mortgage so you are not tempted to rack up more debt. Direct your debits: If you switch to a new loan, make sure you also switch any direct payments and debits. It๏ฟฝs easy to lose track of what๏ฟฝs being paid, and how and when. Run through the most recent three months of statements for your original loan to identify any direct payments, and notify the biller as soon as possible so you don๏ฟฝt jeopardise your credit rating. You should also give your employer your new account details if your wages are paid directly into your mortgage. Check your borrowing power: One of the biggest oversights borrowers can make when shopping for the right home loan deal is their current financial situation. Has it changed since you took out your original loan? If the answer is yes, and it๏ฟฝs not for the better, you may find your borrowing power has shrunk, which could limit your refinancing options. You may have: started a family and no longer have two full-time incomes; switched careers and now earn less; started your own business, creating a less regular income stream; accumulated other debt, such as credit cards or car finance; or eroded your credit rating through late payments. Any of these factors can impact your borrowing credentials, and may give you fewer bargaining chips than when you took out your original loan. Do a thorough assessment of your total income, expenses, outstanding debts and credit rating so you understand your true financial position before shopping around. Talk to your broker: Take the time and stress out of shopping for a new loan by letting us as your mortgage broker handle it for you. We have access to multiple lenders with multiple products, allowing us to cast a wider net than you probably can on your own to find a home loan deal that suits your needs and circumstances. Brokers can also often gain access to lenders who are happy to take on self-employed borrowers, or those who don๏ฟฝt advertise heavily to consumers, but still offer competitive home loans. The benefits of having us onside are numerous; and the reason that now more than 52 per cent of Australian borrowers use a mortgage broker to arrange their finance.

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Today, we celebrate the incredible women who make our world a better place. From the leaders who pave the way, to the mothers who nurture us, to the friends who cheer us on - we see you, we appreciate you, and we're stronger together! #InternationalWomensDay #NRGFinance

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Whether you're looking to install a new bathroom, makeover a rental property or add extra value ahead of a property sale, our team can help arrange low rate personal finance to make your home renovations a reality. Our partners offer a fast, simple process and access to funds typically within 48 hours. Don๏ฟฝt delay, get in touch today!

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Did you know that your skill and experience in managing a tight budget could make you a better property investor than some big spending high income earners? We often meet people who are hooked on the good life: living in expensive suburbs, fancy cars, frequent dining out and overseas holidays. You๏ฟฝd be surprised however, at how many don๏ฟฝt have adequate savings for retirement or redundancy, let alone a solid investment plan. For more details, click here to read my "You may already have what it takes to be a good property investor" article. https://www.mortgageaustralia.com.au/email/files/whatittakestobeagoodpropertyinvestor.pdf

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