Australian personal finance news, tips and advices.
by George
Working out how much you will have to pay for child care is one of the most important parts of the early stages of choosing a centre for your children to attend.
Costs of care can vary widely but most families across Australia will qualify for some Government relief, with the actual amounts received depending on your family’s personal circumstances.
The following five things are essential to know as you work out precisely how much support your family is eligible to receive. ... (read more)
by George
Marriage has been a pillar of society for centuries. Most young Australians still support the concept, but financial concerns have made them more apprehensive about having large, traditional marriages.
Choosi recently released its Cost of Love Report. The purpose of this report was to understand the views Australians hold about marriage and the decisions they are likely to make.
Some of the core findings are listed below. ... (read more)
by George
Last updated on 11 January 2021 with new product info.
There are the dismal statistics we read about the direct effects of bushfires that burn for months in different parts of Australia. Australia is often severely affected by bushfire smoke that’s blanketing the country. There have been instances of asthma, breathing difficulties and other respiratory ailments in Sydney and other cities. People have been advised to stay indoors to avoid exposure to bushfire smoke. But while commercial buildings are equipped with HVAC systems that have filters, homes aren’t always equipped with such systems that protect family health. This is why home purifiers have been in high demand for most people lately. ... (read more)
by George
Post updated on 11 January 2021 with new product info.
Smoke mask is not a topic I would normally write about but given the circumstances (large bushfires in Australia), I think it’s important that we talk about the risks and options we have to protect ourselves and our family (including our pets). Scroll down if you are interested in the smoke masks only. I also found a smoke mask for dogs.
It was nearly the holiday season and the end of 2019 was just around the corner. But with dozens of bushfires raging all across the country, Australia was in a state of crisis. South Australia shut down more than a hundred schools due to a catastrophic fire warning and even those further away from the actual flames were suffering from the effects of wildfire smoke. ... (read more)
by George
Picture this: You just land a great job, but it’s in a different country. You make the necessary arrangements, and you move there. Problem is, you need to send money back to your country regularly, maybe to pay for a mortgage, a phone bill or your family’s expenses.
Come payday, you calculate your budget and come up with the money you need to send before visiting the bank, only to find out that you lose a significant chunk of money to the bank by sending it. This is because banks do not follow the mid-market rate. ... (read more)
by George
The time of the year can be a massive factor in how much (or how little) you pay for your car. Choose to buy your car towards the end of the financial year, and you could secure yourself a very nice deal. You see, at this time of the year, dealers are eager to hit their sales targets for the year or to beat last year’s record. Whatever their motivation, there’s no doubt that they are much quicker to offer cut-price deals or throw in free extras at this time of year.
You can also get good deals in December as manufacturers push dealers to sell that year’s model before the calendar year ends. So think December and June for maximum savings.
You may have this idea that finance is not the best way to save money but the truth is that very few of us have enough money in our accounts to buy a car outright. And even if we did, taking that much out of your savings is a rather depressing thought.
No, your best option is to finance that new car and keep your nest egg intact. And saving money on your loan is a definite possibility if you use a broker like Stratton Car Finance. By using a broker, you could be cutting down costs right off the bat by avoiding dealer finance which is often overpriced and has unfavourable terms.
However, when you use a broker, they will find you a variety of competitive rates currently on the market giving you the option to pick and choose the product that suits you best. And once you have the finance arranged, you can head to the dealer safe in the knowledge that you have the financial side of the deal sorted. This puts you in position of power with regards to buying, and if you play your cards right, you may be able to squeeze a few add-ons as a deal sweetener. Something that a dealer might not do if they were doing you the ‘favour’ of arranging your finance.
Demo models are those cars that you take for a test drive, and that usually spend most of their time in the showroom. They are always tricked out with all the very best features, but at some point, the dealer will need to get rid of their demo model and bring in a new one. And that’s where you come in.
Ask the dealer if they have any demo models for sale. These cars offer incredible savings and often have very low kms on the clock. And while a decent demo model may not be as cheap as a base model, it will have all of those additional features so you’ll get way more bang for your buck.
Just be careful to check all handles, buttons, and levers as these will have quite a bit of wear and tear considering how many test drivers played around with them in the showroom.
So remember the next time you’re in the market for a new car – time it right, use a finance broker, and ask about the demo models. Use any one of these tips, and you should save a little money. Use all three, however, and you’ll be surprised at how much you can shave off the price of a new car. Maybe that leather interior you like so much is possible after all.
by George
They claim that Visa payWave contactless payments increased to 325 million in 2017, which is a 25% uplift compared to 2016. There were 67 million more payments in 2017 than the year before.
In the first month of 2017, Visa reported more than 24 million contactless payments, which by the end of the year increased to over 33 million.
According to Westpac, contactless is the preferred payment method in over 90% of purchases and contactless generated more than 68% of the Westpac Visa cardholders’ total spend.
It’s also interesting to see that St.George Bank (which is owned by Westpac) has higher contactless usage rate than Westpac. The ratio of contactless payments was 95% for St.George Bank customers, while 81% for Westpac customers, which clearly shows the demographic differences between the two banks’ customers. Also, Westpac customers spend 40% more on contactless credit card payments than debit card payments, which shows that customers are comfortable to use contactless payment for more expensive purchases.
It seems like that the fast food industry is the leader in contactless payments (98%), followed by other kind of restaurants (96%), grocery shopping and discount stores (both 93%). Healthcare related payments had the lowest contactless ratio in 2017, only 59%.
There are quite a few brand and technology names in the contactless payments system but the two most widely used technologies in Australia are Visa payWave and Mastercard PayPass (a.k.a. Tap & Go).
I look forward seeing the 2018 report next year but there’s most likely an upper limit for contactless payments and they will never reach 100%.
Here’s a link to the Westpac contactless payments article.
by George
Are you someone who absolutely hates how long it takes to make a transaction using a credit or debit card? Do you worry about card fraud a lot? If so, you will love contactless payment systems, which involve the use of contactless cards, stickers, key fobs, mobile devices, and wearable gadgets.
In a nutshell:
Contactless payments make life a tad easier for the average consumer.
Contactless cards have been available in Australia since 2006 but it only started to gain traction in the last few years. From the 7.6 million cards issued in 2010, the number grew to 18 million in 2014. With more and more retailers accepting contactless payments, the total number of contactless cards in Australia should reach 33.9 million in 2019, Timetric predicts. ... (read more)
by George
People often ask me why am I so passionate about Reverse Mortgages. I guess many Australian seniors are either wary because of the misinformation and misconceptions that still linger in the market, or don’t see how someone can be so passionate about a ‘financial product’.
The reason that I love Reverse Mortgages so much is that I have seen firsthand what they can do for people. I have spoken to, and met with, thousands of seniors whose lives have literally been changed by a Reverse Mortgage. I think that’s pretty neat.
Am I overstating the impact? Life-changing?
I don’t think so – you just have to look at what you can do with reverse mortgages:
When you stop working, your regular income will be significantly reduced. Relying on your pension or superannuation may not be enough to sustain a comfortable lifestyle. Remember, superannuation was only mandated by the Government in 1993. Therefore, if you started working in the 60s or 70s, there is a lower chance that you have gained enough fund for your retirement.
In a recent report from The Association of Superannuation Funds of Australia they noted that the Aged Pension only covers a third of what is considered to be a comfortable lifestyle in retirement.
Many Australians today don’t have enough money for their everyday expenses yet they live in properties that are worth hundreds of thousands. With a reverse mortgage, you can convert a portion of this equity, which you can use for aged care, home renovation, payment of debts, and many more.
No one wants to spend retirement still paying high-interest debt. But many seniors living on pensions are using credit cards if their funds are not enough. With a reverse mortgage loan, you can save money on repayments while getting peace of mind. Usually, seniors are no longer eligible for a mortgage or credit line, but with reverse mortgage you can access the cash you need to pay all your debt. Also, repayments for reverse mortgage are not required, so you don’t need to worry about monthly dues.
While government support is available to allow seniors to stay at home to receive aged care, the financial subsidy may not be enough to cover all expenses and depends on an asset test. Wealthier seniors may not be eligible for any home care service benefits. If you have been evaluated as capable of shouldering a portion of the home care services, your home care provider may ask you to pay first either a basic daily fee or an income-tested care fee before they provide you with assistance.
In reality, many seniors, especially those with reduced income may still struggle despite of receiving government subsidy. It’s important to remember the cost of retirement living could increase in the next few years. The rising prices of basic goods and increased expenditures for medical treatments can make it hard to make ends meet.
Taking out a reverse mortgage to assist with aged care services can give flexibility and breathing space for seniors and their families during a stressful period of change. The loan proceeds can also be used to supplement retirement income, regardless of the pension level, to cover home care costs not included in the government subsidy.
An aged care loan can also be used to fund residential aged care.
After long years of working hard and building your personal wealth, you now have all the time in the world to do anything you want. Why not realize your dream holiday this year? Nothing could hold you back, except if you don’t have the money to finance your travel and holidays, of course.
Rather than using your pension or spending your personal savings to fund your holidays, you can unlock a percentage of your home equity to access more cash through a reverse mortgage loan.
Reverse mortgages are probably the most heavily regulated consumer finance product in Australia. As long as you adhere to the terms of the loan you are guaranteed to be able to stay in your home as long as you choose (lifetime occupancy), you can never owe more than the value of your sales proceeds of your property (no negative equity guarantee) and you do not have to make a repayment until the end of the loan, but are free to do so without penalty at any time. Legal advice is mandatory and at Heartland our team and our accredited broker network work hard to ensure customers make an informed decision.
That is why I am a ‘true believer’ in Reverse Mortgages for seniors. I don’t think there is another financial product out there that has as much power to genuinely change lives people in quite the way a Reverse Mortgage can.
If you would like to see if a Reverse Mortgage is right for you or just to discuss Reverse Mortgages in general please feel free to give me a call – 1300 889 338.
You can also watch the animated explainer video below to get started with Heartland reverse mortgages: (Video to be embedded on blogpost)
https://www.seniorsfinance.com.au/reverse-mortgage/how-a-reverse-mortgage-works
https://www.youtube.com/watch?v=KEzUlasTJDE
Andrew Ford, CEO, Heartland Seniors Finance
Andrew Ford is the CEO of Heartland Seniors Finance and has been with the Heartland group for over 15 years. He is passionate about reverse mortgages and the difference it can make to the lives of seniors.
by George
With the end of financial year fast approaching, and a new one right around the corner, it’s time to think about ways to cut down your business expenses. Some hacks are more obvious than others, so here is a list of the ones you might not know about. ... (read more)