Geelong Financial Group's August Seminar

On behalf of the GFG team, we would like to thankyou for your support and attendance at our seminar on the Wed 25th.

Venue: 25th Aug Four Points Sheraton.

Speakers: Rory Costelloe is a very well respected land developer with one of the largest land holdings in this region and his knowledge is unquestionable. Executive director of Villawood @ Armstrong Creek
> Peter Mann is presenting on many legal issues, including how to structure your investments, asset protect, and other legal issues that we all face on a regular basis.
> David Lolait & Simon Sutterby will also be presenting on finance information and structures

Due to the success of this event and taking on board our clients request for more information about property (1st Home buyer & Investor) the A-Z buying, legal & finance was very well received and we look forward to another event/celebrations in Nov with noted guest speakers & GFG 10 year in business celebrations.

78 plus GFG staff attendance on Wed 25th and all were very appreciative of the evening.

We look forward to keep providing our clients up-date & relevant information to meet our clients' needs.

Surf Coast - Coastal Properties and Surrounds 

 

July Market Review 2010

Geelong Financial Group Property Seminar

Vehicle and Equipment Finance - How to get the best result!

Chris Unthank from Geelong Financial Group (GFG) specialises in correctly financing the purchase of business equipment, machinery, office furniture and fit outs, along with motor vehicles.

Chris will work together with the clients professional business advisers, normally the accountant, to provide the best solution - considering structure, asset protection and pricing. 

What is important when you finance plant, equipment and vehicles?

1. Finance structure
2. Asset and Business protection
3. Tax implications
4. Term of the loan - 3 to 5 years
5. Residual or balloon remaining at the end of the loan
6. The most appropriate funder to suit the clients needs and business.

The difference - A Lease, Hire Purchase, Chattel Mortgage and Business Loan!

Lease/Novated Lease

A Novated lease is a viable solution for employees (rather than the self employed), as this method of finance allows for the deduction of the purchase and running costs of a vehicle, and makes for some strong tax savings for clients.  Novated leasing is more advantageous given the client travels longer distances, and is in a higher tax bracket.

Hire Purchase/Chattel Mortgage

These two structures are arguably the most common for small/medium business owners financing vehicles & equipment (this is where GFG would liaise with the clients accountant for tax purposes).

Most financiers offer maximum 60 month arrangements, with a balloon or residual at the end (generally up to 30%). The lower the residual, the higher the monthly repayments, but also the lower the interest charged. Assessment and discussion on cash flow is very important to deciding the right mix with regard to term (months) and end payment (residual).

Vehicles in this structure are more difficult and more expensive if the vehicle is older than 5 years old. GFG has access to more than 12 funders, including the major banks, along with some second and third teir funders that work with older and less main stream vehicles.

Business Loan

Using a business loan can involve mixing business assets with personal security, and for this reason structure is very important.  Generally GFG will always aim to minimize risk by keeping personal assets separate to business assets.

A business loan is an option where the client has a lot of property equity, with minimal business history, or where the business is not showing strong figures for various reasons.

A personal loan attracts a higher interest rate so this type of funding would be a last resort.

Where to now?

GFG provide the following from a panel of 12 lenders,

• Hassle Free, Fast approvals.
• No Deposit Finance
• Mixed Residuals available.
• Low rates and flexible terms.
• Full access to bank & non bank lenders.
• Professional, experienced team of 10 staff across the Geelong and Torquay offices

I look forward to chatting with you to assist in the purchase of your plant, equipment and / or vehicle requirements.

Chris Unthank
Director, GFG Commercial Finance
Phone: 0430388779

Investment Properties – When and Where?

The Process
Investment properties should be bought without emotion. The moment you involve your personal tastes the deal will be spoilt. Investing is all about numbers and if the deal “stacks up’ it should seriously be considered.

Finance
Have your finance in place. This will allow for you to place an unconditional offer on a property and all vendors enjoy seeing a line ruled through “special conditions”.

Budget
Work within a budget. Your broker/bank will advise you of your borrowing capacity. Remember to add a 5% sum to your potential purchase price to allow for stamp duty, legal costs etc. If your are purchasing a $400,000 property you will require access to $420,000.

Where to Buy?

 Always consider infrastructure when purchasing an investment property. Tenants are tenants for a good reason. The reason is that in the majority of cases that they cannot afford their own home so they lease a property and pay rent. Many who pay rent are saving for their own home. If you are saving or simply paying rent and enjoying life you will want value for your rent payment. Value comes from being close to many of the things that are important to you and these include public transport, schools, shopping centres and sporting facilities.

Auctions 

Avoid the auction situation if it is at all possible. Why? The answer is that most properties sold at auction sell above the reserve price. If several parties are interested in the same property then the purchase price is often inflated in a bidding war.

Decision Making 

The worst decisions are made by two types of purchasers. They are those who are greedy and those who cannot swallow their pride. When purchasing be sensible and be fair. Make a genuine offer which will allow the communication channels to flow freely. A “silly” low offer on a property will harm your relationship with the agent and the vendor. 

Geelong Investment Seminar

Geelong Financial Group recently hosted an investment seminar at the Four Points by Sheraton in Geelong. Speakers from the St George Bank, RBS Morgan and Landlink Property Valuers passed on their knowledge about investment strategies and gearing, investing in a safe and profitable environment, stocks, local property growth and more.

First Home Owner's Grant – Things To Know

The Victorian Government has extended and increased the First Home Bonus for newly constructed homes in metropolitan Melbourne and regional Victoria.

• a new home in metropolitan Melbourne increases from $11,000 to $13,000, and
• a new home in regional Victoria increases from $15,500 to $19,500. 

The new amounts apply to eligible transactions with a commencement date of on or after 1 July 2010 and on or before 30 June 2011.

The Bonus amount for the purchase of an established home, currently $2,000, will expire on 30 June 2010. At present first home owners receive $9,000 for an established property and from 1 July 2010 this will be reduced to $7,000.

Buy land and build OR purchase an established property?

Many first home owners in regional Victoria are currently considering the option of purchasing land with the view to construct.  As well as obtaining $22,500 (current) or $26,500 (after 1 July 2010) there are substantial stamp duty savings in comparison to buying an established property of similar value. For example, if you buy land for $250,000 and build for $250,000 you will have a property valued at approximately $500,000 when it is completed. In this case you would only pay stamp duty on the land and this would be approximately $8,870.

If an established home is purchased for $500,000 then stamp duty is applicable on the entire purchase price. Stamp duty in this case would be $21,790. In both of these examples an assumption has been made that the purchaser would make the property their principal place of residence which entitles them to a cheaper rate of stamp duty.

In the above examples, building would result in a stamp duty saving of $12,920. The First Home Owners Grant available for constructing a new home in regional Victoria would be $13,500 more purchasing an established property. From 1 July 2010 this difference will increase to $19,500.

For more questions about first home buyers finance or home loans Geelong, give us a call at Geelong Financial Group.

Geelong Financial Group - Torquay Office Opening

The Geelong Financial Group opened their Torquay office Monday, 10 May 2010. Situated in the heart of the Torquay shopping precinct on Gilbert Street, Torquay Victoria we are now happy to be able to provide all of our financial services to our Torquay clients:

• Home loans Torquay
• Torquay finance
• Leasing Torquay
• Business loans
• Commercial loans
• Equipment loans
• Financial advisors
• Vehicle finance 

If you have any queries regarding your finance, come down and see us at Geelong Financial Group's new Torquay offices, or phone us on 03 5261 6530.

Make The Most Of The End of Financial Year

With the end of financial year just around the corner, now is a great time to review your financial position and ensure you are making the most of any available tax effective strategies.

There are many strategies you can implement before the end of financial year to boost your retirement savings and achieve tax savings.

End of financial year planning opportunities are different for everyone, because they depend on your life stage and personal circumstances. It pays to seek professional advice to determine which strategy is best for you.

Some of the more common strategies that should be considered:

• Boost your super savings & pay less tax via salary sacrifice
  Salary sacrifice essentially means putting part of your pre-tax income into your super and therefore paying less tax
• Claim a tax deduction on your super contributions
  For the self employed, by making personal contributions to super you may be able to claim a tax deduction to reduce your taxable income. 
• Protect your family
  Prepaying your income protection not only provides peace of mind but generally allows the whole amount to be claimed as a tax deduction.
• Government co contribution - Take advantage of government concessions
  This could mean an extra $1,000 in your super account courtesy of the government.
• Boost your spouse’s super savings
  If you have a low income earning spouse, you can help to top up their retirement savings by contributing to their super and reduce your income tax at the same time. 

Act now so you don’t miss out

For more information on end of financial year planning, speak to your financial adviser or contact Hugh Sutterby of Geelong Financial Group on 03 5229 2048.   

This material is current as at May 2010, but may be subject to change. It has been prepared without taking into account your objectives, financial situation or needs. Before making a decision based on this material, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

Before making any financial decision, Geelong Financial Group recommends you obtain professional financial advice specific to your circumstances.

Hugh Sutterby is an Authorised Representative of Professional Investment Services ABN 11074608558 AFSL 234951.   

Geelong Financial Group Appoints Business Development Manager

Geelong Financial Group appoints Wade Vautier as Business Development Manager as part of GFG’s expansion into the Surf Coast .

Geelong Financial Group has been servicing the Geelong and surrounding areas for 10 years & with a grand opening of its new Torquay office this month, allows the business to service a wider population.  GFG are aware of our associated business partners and clients needing more attention to detail & prompt client support, both in Geelong and the Surf Coast.

From my perspective, this means that the GFG team knows how to perform and has the discipline to follow through and achieve the out-comes the client requires.  

Geelong Financial Group has individual Directors specializing across five distinct finance, investment and property “cells”.  

These five cells consist of the following: - Residential Mortgage Finance, Property Investment Finance, Vehicle & Equipment leasing,  Commercial & Business Lending,  Lifestyle Investment Planning & Property Purchase Advocacy. 

GFG along with the support of their accounting and legal partners are able to address all things finance and investment.