Aussie Finance Blog

Australian personal finance news, tips and advices.

TransferWise Review: Money Transfers at True Mid-market Rates

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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)

How Much Does Landscaping and Gardening Cost?

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Tasteful landscaping and gardening are very effective in increasing the sale value of homes and property. According to a recent article on OpenAgent, an investment in colourful plants, as well as practical garden spaces, can add at least $15,000 to the value of a home. Real estate agents have long extolled the value of simple flowering plants, which quickly enhance a property’s sale value.

Professional landscaping, such as decks, garden spaces, patios, and sitting areas, with fireplaces and pools, exemplify, to potential buyers, a space ready for restful family activities. Real estate agents tell us that professional landscaping can add 6 to 7 per cent to the value of a home, whereas, if you neglect your garden, it can lower the value of your home from between 5 and 15 per cent. ... (read more)

Comparing car insurance

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What should you look for when comparing policies?

Cars are a big expense, especially when it comes to insurance. Whether you’re buying insurance for the first time or your policy is due for renewal, you should always start by comparing your options. But where to start? Here are five things you should consider when comparing your car insurance options.

The cost

Cost is the first point of comparison for people when comparing policies because it’s the simplest way to compare, ie policy A costs more/less than policy B. ... (read more)

Comfort Spending: How to beat the $1400 a year habit

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By Rhianna Dews, Money Writer at Mozo

Despite all the benefits that come with the digital world we live in today, its fast pace has ultimately led to a rapid increase in stress and anxiety, with Beyond Blue data revealing that 1 in 7 Australians are currently experiencing an anxiety condition.

What makes matters worse is the way in which Aussies are coping with the pressure. Mozo’s 2019 Comfort Spending Report found that Aussies are spending $1,430 each year on average in attempts to dilute stress, boredom and anxiety. This works out to a massive total of $25.5 billion each year! ... (read more)

Undateable debt: Why it pays to know your partner’s credit score

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By Kate Browne

Nothing unravels a blossoming relationship quite like a bad credit history. Seriously!

Ok I know what you’re thinking “yeah right sure finance lady, it’s not about how you look or how you come across personality-wise or even if you are a dog or cat person it’s all about your credit report…give me a break.” And well that might be true, bear with me…. If you are going on a date it just might be worth checking your credit report – as well as the mirror – before heading out the door. ... (read more)

How to Use an Economic Calendar to Trade in Forex Markets?

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Every day countries publish economic reports, meetings of Central Banks are held, as well as governors give speeches. These events usually occur at a scheduled time. To keep abreast of the upcoming events traders use an economic calendar where the time of their release and the degree of importance are displayed.

An important economic event can significantly change the market price of the asset in a matter of minutes. Traders respond to news reports in different ways. Some traders expect such news and recommend not to miss the opportunity to benefit, while others stop trading before the releases and wait for the market to calm down. ... (read more)

The Importance of Funeral Planning

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When it comes to aboriginal funerals, it is an event that is highly valued by the Aboriginal people. Often, ceremonies related to funerals can go on for several days and even weeks. In more intense ceremonies, the children might even be absent from school in order to take part in these very valuable communal events. The ceremonies include multiple dances and songs, which have their varied structures and meanings. In order for all these take place, the families will surely incur expenses. This is where the importance of funeral planning comes into the picture.

Make a difference

As humans, we are always busy making one plan or another, especially when it has to do with everyday, weekly, monthly, or annual events that bring us success and happiness. A higher percentage of people never take the time to consider funeral planning, whether for themselves or their loved ones. Although it is not a pleasant topic for thought or discussion, a funeral is a significant part of everyday living and should be given due attention. This is especially true when it comes to the financial aspects of conducting funerals, which might put a whole lot of stress on your loved ones on top of their grief.

The importance of making funeral plans

There are several reasons why you should consider a funeral plan, these include but are not limited to the following;

  • It Reduces Financial Burdens: Especially if you happen to be the breadwinner of your household. Knowing how much you love your family, it would surely break your heart to allow them to be saddled with the financial burden of handling your funeral. On the other hand, buying funeral plans for other members of the family also eliminates the issue of funeral costs, which might just add to the grief the family is dealing with.
  • It Makes Cash Available: Most times, it takes weeks and months of paper work before the dependants of a deceased person can have access to the funds left behind by the deceased. This however, will not be an issue if there is a funeral plan in place. With the beneficiary’s demise, payment is usually made within 48 hours, leaving the family members with adequate cash to start the burial preparations without wasting any time.
  • It Helps Loved Ones Get Closure: In the aboriginal culture, giving a loved one a befitting funeral leaves the loved ones fulfilled. With funerals being a part of the grieving process, a deceased person’s loved ones are able to find closure knowing that their departed family member was given a befitting burial. With a proper funeral plan, a person’s loved ones can bid them a heart-warming goodbye.
  • Other Funeral Expenses Can Be Settled: Depending on the type of plan opted for, the payout might go a lot farther in helping the family cater for other related funeral expenses. Some of these expenses include but are not limited to transportation for guests, the ceremony, the headstone, and other relevant aspects.
  • Additional Support Is Made Available: A good number of companies go the extra mile to offer more than just financial assistance to a grieving family. There are a variety of other kinds of support which includes but are not limited to legal assistance, bereavement counselling and proper organising of the funeral. This way, the family members are able to heal quicker and better from the loss of their loved one.
  • Availability of Future Financial Support: With a good funeral plan, there might be the option for offering the bereaved family a set financial support for several months after the funeral. This option is available to anyone who happens to be the breadwinner of his or her family. With this fund, the family are able to offset bills and certain necessities like food, rent, school fees, etc. Even as they try to find their feet and move forward again as a family.

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    How to Compare Mortgages

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    Whether you are getting set to buy your first home or you are preparing to re-mortgage your home, it is important that you do so with the best deal available. You don’t need to be an expert in using a mortgage repayment calculator before you can find a great deal out there. Instead, you need to understand some of the steps that would help you towards having your home mortgaged at the best rates.

     

    In order to avoid being ripped off, you need to take your time and compare mortgages from a few vendors. This needs to be done correctly, if you desire a good result. You should also understand that the type of mortgage you choose will go a long way to determine the rate you pay. Other factors that might impact on rates include your deposit, credit rating, and others. Listed below are some of the steps that would help you engage in successful and great comparison shopping. They are as follows:

     

  • Understand what you want; Before you take the first step of comparing prices, you should first determine what you actually want. Are you settling for a fixed rate mortgage or do you intend on going for a tracker mortgage? You should understand that since a fixed rate offers more security, the price tends to be higher than a tracker mortgage. It is your decision to make but guidance is available.
  • Compare related offers: In order to ensure that you get the best rates, whether you are proficient in using a mortgage payoff calculator or not, you should only compare related offers. Don’t compare the price of tracker mortgage from one vendor and go for fixed rate with another vendor. In doing this, you will only end up more confused and struggle to make an informed decision. Instead, make related comparisons. You should also know that even though your qualifications are not altered, different vendors will offer you different prices and terms. This is especially because they use varying business policies and models.
  • Opt for a Mortgage Broker: Most times, we just have to leave certain things for the professionals, including comparing quotes for a mortgage. With a broker, who is certainly more versatile with utilizing a bank mortgage calculator, you might just be able to land a great deal with a reputable lender. This broker acts like a middleman between you and the lender and depending on what you want, you can be matched with a lender that has loan products that expressly fit your home mortgage needs.
  • Go for Relevant Rates: One of the deciding factors when you are out there shopping for a residential mortgage is the amount you are able to deposit. This means that the rates you are offered when you are making a 30% deposit will definitely be better than the rates you will be offered when you are making a 10% or lesser deposit. When you understand this, you will surely not waste your time comparing quotes you will definitely not qualify for.
  • Work out your expenses: When you are comparing quotes for a mortgage, don’t just think about the mortgage deposit. There are other expenses you should be paying attention to as you get ready to use that simple mortgage calculator. Some of these expenses include but are not limited to solicitor’s fees, moving costs, property survey fees, etc. With this, you should be able to work out the level of deposit you can afford to put down.
  • Work out all costs related to the loan: In order to avoid any last minute surprises, you should take your time to work out every cost related to the mortgage loan. You want to know what you are getting into and as such, you should have a good knowledge of the monthly repayment amount, the interest rate, lender fees, and others.
  • Wrap it up: After you have made your comparisons, it is time to lock up your rates and get things wrapped up for good. Having made your calculations with the mortgage calculator, the next step is requesting a written “rate lock” from the potential lender. This is a form of written agreement that stipulates the interest rate, the interest price, and period of time it covers. With this lock-in, you are fully protected from any form of rate increase while your application is being processed. While some lenders go ahead and charge fees for the lock-in, others do it without any additional costs. It varies from one lender to the other.

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    3 money-saving tips for buying a new car

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    That new car smell, the smooth ride, the envious look on your neighbour’s face, the empty savings account … hang on, that’s not right. There are certain things that make buying a new car worth it, and an empty bank account certainly isn’t one of them. But you know what? You really don’t need to spend as much as everyone else does for a brand new car and here’s how you go about it.

    Time it right

    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.

    Get a finance broker

    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.

    Ask about demo models

    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.

    Contactless payments statistics in Australia

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    Last month I published an article about contactless payments and it seems like it’s a hot topics nowadays because Westpac released its Visa contactless payments statistics for 2017.

    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.