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Catherines Chat

Wholistic Financial Solutions provides a lot of essential information and updates regarding the property investment industry. Check this page for the updates.

Time to Switch Banks

Friday, February 05, 2016

Has your Bank?

* changed your investment property loan to principal and interest without giving you any choice?

* Worse, raised your interest rates just because they can?

* or declined an Investment property loan over 80%?


If so, your investment property strategy is no longer as tax effective as it should be and your cash flow is reduced.


WE CAN FIX THIS FOR YOU


We can also review your entire loan structure and re-finance you to a much cheaper bank.


This could save you 1000's in Interest and TAX per year.


The big banks think they can do this to you just because they can...


Just because they want more PROFIT at your expense.


Take action now.  Beat the banks at their own game.


Contact tim@wfscanberra.com.au for your FREE mortgage review.

It’s Time To Switch!

Monday, November 16, 2015

GUEST POST BY Tim Slarke - Mortgage Broker and Credit Licensee at Wholistic Financial Solutions

Have you taken the time to take a look at your latest mortgage statement from your bank lately? Most people just accept it as a piece of nuisance mail and may not even open the envelope. But if you take the time to have a closer look at it, and you’re with a big bank, you may be in for a surprise, and not a pleasant one.

It’s an unwritten fact that unless as a consumer you say something, or express dissatisfaction with something, nothing will happen. And the Big 4 are no different to any other major organisation in that they will not give you as a customer anything of benefit to you willingly, even if you are entitled to it.

So borrowers should take control and actively seek out the exceptional deals that are available now in the mortgage lending market. There are an enormous number of smaller lenders that are offering exceptionally low interest rates and other incentives for new clients to join them. In the past 20 years there has never been time to look beyond the obvious and really consider your borrowing options.

At WFS we have over 50 years combined of finding the best loans for our clients. Not only finding the best deal available, but also using our vast taxation experience to structure loans to maximise the tax effectiveness of our clients’ borrowings to improve their wealth and therefore their lives.

At WFS we have over 25 lenders on our panel, all looking for new clients. Combined with WFS’s experience and professionalism, the best possible result is guaranteed for the home owner and investor who is prepared to allow WFS to find the best loan for them.

Whats really going on with the Banks and Property Market?

Friday, October 30, 2015

So what’s really going on with the banks and the housing market?  It’s complicated to explain but when banks assess loans they use what they call a ‘servicing interest rate’.  So even if the loan is at 3.99% the banks use a different rate to assess the loan and the banks are being ridiculous and using rates like 9.5%.  This is no reflection of reality – as in the banks don’t think rates will go this high.  What they are doing is playing a chess game on behalf of the government with us borrowers as the pawns.

 

The Government is concerned about the ‘property boom’ happening and are trying to slow it down.  This in itself is ridiculous as the so called ‘property boom’ is limited to Sydney and Melbourne.  As we in Canberra know, it hasn’t happened here, that’s for sure.  And similarly Brisbane has only just started on the incline.

 

So…. Governments normally raise interest rates to combat property booms but they can’t do that this time because fundamentally the Australian economy like the rest of the world is not looking so healthy.  If they raise rates – they could sink Australia.  So instead of sitting back and letting the markets do what they should do, as in correct themselves, they are using borrowers as pawns and putting pressure on banks to make borrowing much more difficult. 

 

They are also putting pressure on Valuers and valuations are coming back ridiculous.  I just had a property value come in $140,000 under value as to what the purchaser was willing to pay.  I have never in my life seen this happen as a value is ‘what the property will sell for on the open market’ so if a purchaser is willing to pay the purchase price – then that’s the value.  But no, once again the banks are using Valuers as Pawns too and requesting them to value as low as possible so that borrowers can borrow less.

 

This is all temporary and could turn around next month once the Government wake up to the fact that their intervention could do far more harm than good but in the meantime we can only work with the rules the banks set.

 

I have been told I should go into politics but no bloody way.  I couldn’t handle working with the peacocks.

 

I hope that makes some sense.  Probably not as it seems a crazy way to run a country.

Interest Rates are at an All Time Low

Monday, May 20, 2013

Interest rates are at an all-time low.  This provides borrowing rates of less than 5% from many banks. Property enquiry rates are continuing to escalate, converting into a rising rate of sales Australia wide.

 

And many experts are predicting a further 0.25% interest rate cut over the next two months

 

This month’s Your Investment Property magazine has revealed its National Top 50 Hotspots which include Mackay, Ipswich, Rockhampton, Toowoomba, Townsville, Emerald and Bowen.

 

And in the Queensland Overview, the major focus is on Mackay and Brisbane, with Gladstone, Bowen, Townsville, Rockhampton and Townsville rating a mention.

 

If you are interested in knowing more, email Catherine@wfscanberra.com.au for the latest property research material and gossip.

RBA cash rate cut needed in February

Friday, December 28, 2012

The Reserve Bank needs to cut the cash rate by a large amount in one big hit to stimulate a recovery in the housing market, according to Residex chief executive John Edwards.

On the back of November Residex housing market data, which shows many markets in negative territory or treading water, Edwards says the Reserve Bank should look to cut the cash rate by 75 basis points in February.

“Should the RBA continue along the road of small reductions, there is a real risk that it will need to reduce the cash rate to 2% or less.

“However, should it move to a much more significant reduction in February (of around 0.75 percentage points), this would probably achieve its objectives and bring the cycle of small rate adjustments to an end.

“The outcome would be the removal of constant press about the likely poor outcome as the resources boom comes to an end.

“Importantly, it would be probably sufficient to stimulate consumer spending and encourage small business investment. In all probability, this outcome would lead to a much improved level of consumer sentiment,” he says.

Edwards says housing markets had done better in 2012 compared to the previous year, but had failed to keep pace with inflation.

“The majority of cities have produced negative real rates of growth (after taking inflation into account). In fact, the real growth was a -2.8% in housing while for units it was -1.23%,” says Edwards.

Despite the poor performance of the market in 2012 in real terms, Edwards says he expects all adjustments in house prices since the GFC to be “recovered in the medium term, and prices are anticipated to be equal to or better than before the GFC”.

RBA Rate cut

Wednesday, December 05, 2012
The RBA has given homeowners more good news – with the RBA announcing today that they will reduce the cash rate by 0.25 points to an overall rate of 3.00%. This equals the lowest level ever for Australian homeowners and has come about due to a multitude of factors which highlight that not only Australian growth but global growth is also slowing. The Organisation for Economic Co-operation and Development (OECD) predicts that Australian growth will slow by 0.7% next year compared with figures this year.

RBA can afford to sit tight on rates: IMF

Friday, September 30, 2011
RBA can afford to sit tight on rates: IMF

Keeping a wise head in a turbulent environment

Friday, September 30, 2011
Keeping a wise head in a turbulent environment

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