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Lending Advice, Wealth Creation

I have recently assisted a few clients with ‘off-the-plan’ purchases, and they have each had their own unique obstacles when it came to the finance process. ‘Off-the-plan’ purchases are typically apartments or townhouses that have been bought before they have been built. A 10% deposit is payable upon signing of the contract, and the remainder is paid once the property is built. When making a purchase like this, there are two important things to think about so that you aren’t caught out and unable to settle on your purchase.

Firstly, valuation may not come in on contract price, meaning that a strong equity position or a large cash deposit is an advantage when considering this style of purchase.

Secondly, not all banks feel comfortable with taking on property in certain postcodes. This limits the bank’s exposure to concentration risk.

Engaging a mortgage broker early in the purchasing process is a buyers first safeguard in ensuring that settlement time frames are met. Please feel free to get in touch if you are requiring assistance with securing finance for your off-the-plan purchase.

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Risk Protection

Private health cover is an expense that almost 60% of Australians pay each year. Although there are a number of costs that this type of insurance will cover, it is important to understand that there may still be significant out of pocket expenses if struck down with a major injury or illness.
4 Corners have put together an interesting report on some cases in which Private Health Cover did not pay out as expected for major health issues, leaving the patients significantly out of pocket.

http://www.abc.net.au/4corners/mind-the-gap/9809314

Having a well-structured risk strategy is one way to ensure you are not caught out by this. Trauma cover, which covers a range of medical events including heart attack, stroke and cancer will help with the out of pocket costs. When coupled with income protection, major medical events will not be as financially onerous.


Private Health cover is a necessity for some and plays a very important role in many people’s lives, but it does have its limitations. To understand more about how to cover you and your family more comprehensively in case of a major injury or illness, give us a call.

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Lending Advice, Risk Protection

With interest rates as low as they are, it may be the right time to look at buying your first home; or if you have a younger family, it may even be time to think about upgrading to a larger family home. With the average Australian diving more into debt than ever before to achieve this, it becomes even more important to understand the following:

  1. Can I meet my financial obligations if unable to work?
  2. Can I continue my lifestyle should interest rates rise?

Having a well-structured mortgage that has been set up by an independent broker is your first step to surety around this. Personal insurance cover, in-particular income protection is the other safeguard to ensure you’re reducing risk where possible.
At ActOn Wealth we provide our clients with the clarity they need when making such large financial decisions.

If you are looking at buying a home, give us a call to discuss these important questions.

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Wealth Creation

One of the most common reasons I hear as to why someone hasn’t invested is that they have instead opted to pay down their home loan. If retirement or creating a legacy is a priority, then paying down your home loan as quickly as possible will most likely not be the optimal strategy to help you achieve either of these. That is, while home loan debt reduction is certainly something that needs to occur before retirement, the return on investment is limited to the home loan interest rate.

Typically, as long as the family home is paid off by retirement (whatever age that may be), excess cash flow can be channelled elsewhere. then it is important to consider streaming money toward creating other income streams for long term wealth creation. The earlier that an asset can be acquired, the greater the opportunity it has to grow whether it be property, shares, managed investments or extra contributions toward super.

Investing can quite often be nerve-wracking, and there are many things that need to be considered before committing to a strategy. To understand more about the importance of investing, give us a call on 13000 ACTON.

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