Craig Holme: Why I oppose the rollback of Financial Planning reforms

Craig Holme: Why I oppose the rollback of Financial Planning reforms

Will Interest Rates rise this year ? 3

Will Interest Rates rise this year ? 3
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1) How will a potential Interest Rate rise effect Housing prices ?
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A recent article in the Australian Financial Review by Christopher Joye,
"House prices are set for a fall", comments on this question,
'The crucial point here is that in mid 2010 Australia's house price to income ratio ,
 which is one valuation guide the Reserve Bank of Australia references,
 was falling - and it continued to taper to a decade-low through to until late 2011.
 But in the second half of 2013 and 2014,
 Australia's house price to income ratio has been rapidly rising,
 and is approaching a new record.
 Since August last year I've warned that if the RBA keeps borrowing rates at lifetime lows,
 Australian housing valuations could burst through their high water marks.'

2) Does your Accountant have access to real time,
    live Cloud based Accounting Software,  to proactively create a Strategy
    to deal with potential Interest Rate rises ?
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3) Is your Accountant looking backwards at your Financial statements
    and making comments on the past,
    or looking forward ?
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    Any Commentator Accountant can point out your past mistakes ,
    but Cloud based Accounting software enables your Accountant
    to make much more accurate future projections.
    The Alpha Accountant Network provides a Training and Support Program
    that covers the benefits of the best Cloud based software.
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Will Interest Rates increase this year ? 2

Will Interest Rates increase this year ? 2
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According to a recent article in Your Mortgage magazine,
"Mortgage interest rates to hit 9.5%",
there is a strong possibility of an Interest Rate rise during the course of this year.
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The article continues , "Mortgage holders take note: there's a good chance you'll be paying up to 2% more for your home loan by Christmas.. At least that's what industry forecasters BIS Shrapnel are predicting. BIS Shrapnel is expecting a recovery in residential property markets that will drive interest rates up by 2% in the next two years,

 boosting the standard variable rate on a home loan up to 9.5%.

BIS Shrapnel .... points to a potent mix of a strengthening economy,

record low unemployment and increasing net migration as the key drivers

 of Australia's forthcoming real estate recovery."

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1) Why should you create an Alpha Budget to prepare for any potential Interest Rate rise ?

Some Householders are caught up in speculation about Interest Rates and their propensity to rise , instead of preparing their Finances for this eventuality. But the problem for many people is equating Budgeting with pain and stress, and placing the Budget on the same level of priority as the Dentist.

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However, by not creating an Alpha Budget to deal with potential rises in Interest Rates,

more pain will be experienced by the Client because they have not been adequately prepared

 by their Accountant.

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The above cartoon is an analogy of a Dentist forgetting to use Novocain with a Client.

 not using an Alpha Budget to prepare for the Pain of any potential Interest Rate rises .

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2) Has your Accountant discussed the creation of a Budget

to assist you with dealing with increased Interest costs ?

Accountants need to be pro-active about creating Budgeting Programs for their Clients to deal with the stresses of increased Mortgage payments.

If your Accountant is not discussing these issues with you it may be time to consider changing Accountants to a member of the Alpha Accountants network .

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3) Why do some Mortgage Brokers avoid discussing Interest Rate rises by using the pain avoidance Disneyland Marketing method ?

Some Mortgage Brokers prefer not to discuss the possibility of Interest Rate rises with their Clients for fear of scaring them away from the sale.

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We interviewed the fictitious Mortgage Broker 'Jack Black' to find out why,

Alpha Accountants  - ' Tell us Jack, why don't you  like to discuss Interest Rate rises with your Clients ?' 

Jack Black - 'Look mate it's simple ,  just simple like selling Used Cars,

 if you tell them that the Car is going to need regular Servicing then they won't want to buy it,

and  if you talk about Interest Rate rises with the average Joe, it scares them off the deal,

 they don't want to know about it, so we give 'em what they want,

we just say that everything is just Disneyworld  right now,

and that there will not be any Interest Rate rises for years to come.

They swallow it hook, line and sinker because this is what they want to hear.

 It's not my fault, it's not my responsibility if there is an Interest Rate rise.

What do I care ?'

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Would you like to join the Alpha Accountants Team of Mortgage Brokers ?

Phone 

   Craig Holme  on 0423 585 832

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Will Interest Rates increase this year ?

Will Interest Rates increase this year ?

There is currently a lot of speculation from Economic Commentators
 in Australia and New Zealand as to the likelihood of an Interest Rate rise this year.
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The issue for Householders is not to get caught up in speculating about the possibility of an Interest Rate rise, but to prepare for its inevitability.

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1) Will you be able to afford your Mortgage payment should Interest Rates rise this year ?

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2) Have you factored in the possibility of an Interest Rate rise

 into your Investment Property Portfolio payments ?

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In a recent article in the Sydney Morning Herald entitled ,

 "Rising interest rate predictions stoke fears for Australia's recovery",

it states, 'The expectations of rising interest rates in developed countries after years of ultra-loose monetary policy has sparked concerns that a possible stifling of growth in emerging markets could slow Australia' non-mining economic recovery. Forecasts of  rate hikes in United States,

the United Kingdom and Sweden this year have risen in recent months as their economies recover following the financial crisis.'

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3) Why should you create a Budget with your Accountant
    which factors in a potential Interest Rate rise ?
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    Interest Rates in Australia , New Zealand and the UK have been at record lows
    for some time, and there are currently several Economic commentators suggesting
    that Interest Rates will begin to rise again later this year .
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The SMH article continues,

 "Markets have also started to price in a small chance of an increase in the cash rate by the Reserve Bank of Australia within the next 12 months from its record-low of 2.5 per cent."

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Sydney Morning Herald Article

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Rising Interest Rates rise stoke fears of Australia's recovery

 

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Phone Craig Holme Consulting   0423 585 932

 

 

   
 

Benefits of Wholesale Finance - 1

Benefits of Wholesale Finance - 1

1) What is the difference between Wholesale and Retail ?
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2) Why choose Wholesale Finance options ?
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Very few people understand that Wholesale Finance options are available,
and that you can receive better Customer Service using this channel.
Some have had bad experiences trying to negotiate the
Do-it-yourself Finance options,
to try to obtain an Interest Rate reduction .
Ads appear on the Internet offering very low Interest Rates,
but the catch is that you have to work out the details by yourself.
If you encounter a problem or an obstacle,
there is nobody available to solve your problem,
so you are directed back to the Finance providers
 website to obtain a normal Retail product.
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An analogy could be made with  the large Wharehouse facilities where you can
purchase a huge range of products at a discounted Price.
But , can you find a staff member if you have a problem to solve ?
What about if the delivery for your order goes missing ?
It is extremely important to have helpful Customer Service
with your Home Loan,
as occasional challenges do arise.
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3) Who will help you with challenges on a "Work it out yourself Jack" Home Loan website ?
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4) What if you lose your job, and you need to restructure your Home Loan
    to prevent you from defaulting ?
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In todays uncertain economy it is imperative to have flexibility with your
Lending facilities. If you were to suddenly lose your job,
do you have access to dealing with real people who
can deliver prompt Customer Service ?
A "Work it out yourself Jack"
website has a bare minimum of Staff available deliberately .

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5) Where are the Customer Service staff on the Do-it-yourself Home Loan website

when you have a problem ?

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6) How much Interest can you save by using Wholesale Finance options ?

The amount of Interest Rate savings varies depending upon the different features of the large range of Home Loan products . Some Loan products have far greater savings than others . Each individual case is assessed by matching appropriate Loan product options to the needs of the Client .

 

7) Why use only Bank sourced Wholesale Finance ? Some Economic commentators regard the Australian Banking System as the best in the world . This view is supported by the performance of the Australian Banks during the GFC . Second Tiered lending from overseas funds is  regarded as not secure by many Economic commentators.

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8) What are the advantages of Wholesale Finance Combo Loans ?