INFORMATION
FHOG (First Home Owners Grant)
Budgeting
What about my business, can I borrow for it?
What about my commercial property?
Can I get into financial trouble and over extend?
I am a builder and find finance for my buyers difficult and often loose sales?
FHOG (First Home owners Grant)
FHOG is the most misunderstood finance application of all with many pit falls for the borrower and the lender alike. The first thing we suggest here is that you go to the appropriate Government web site. That address is http://www.firsthome.gov.au/ You can print off the FHOG application form at that site.
You need however to workout a number of aspects relative to Loan to value ratio, your own savings and relative levels of FHOG to be firm on what FHOG position you are really eligible for and that will then dictate which lender you can use for the best result.
The biggest problem area seems to be with the $14000 home builder grant. Some lenders require that the full FHOG be in put at the first draw stage of the house building stage. Some lenders require that the $7000 initial grant can be used on the land and the balance $7000 during the construction as above. But a few lenders will allow the full $14000 to be input on the land purchase stage.
The FHOG related applications take a little time to put together especially given that a FHOG application has to also be approved along with Mortgage insurance and where plans and specifications have to be valued along with a block of land we suggest that you get 21 days for finance approval and please get your documentation in quickly. A delay of 7-8 days can make all the difference with FHOG applications.
We have four FHOG accredited programs for First Home buyers which cover all the cases mentioned above and are both securtised and non securitised. We suggest that having looked at the FHOG web site with OSR. Send in an application over our web site secure server. We will be able to reply to you within 48 hours with an indicative approval.
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Budgeting… what are the best steps I can take without having to do a degree in finance management?
I would firstly like to thank the Staff and young ladies of St Hildas years eleven & twelve and the students from Beenleigh state High School. I had the pleasure of doing some lectures and answering some budgeting questions for them.
Budgeting is not as simple as most people think. It takes into account many aspects including Finance & Borrowing, Assets and Liabilities, Investing and budgeting. They are all related.
We have developed for your use and convenience a simple set of tips for use with a statement of your cash flow or profit and loss and your assets and liabilities. We call them a budget log use sheet and a budget log. We suggest that you use the two of them together… they are simplified with the formulas already entered for your use. Please keep in mind these are not for professional use or application. They are only for your personal use to get you used to and using a budget and get an element of planning into your finances.
Here are some related general matters with regard to the four elements of this question:
Finance and Borrowing as a general rule you need to observe the rule of 30%. That is that no more than 30% of your income gross can be used for the purpose of servicing debt.
Assets & Liabilities is one area of finances that many people seem to be confused about. Traditionally many people saw their house and car as being assets and loans and debts as being liabilities. New thinking on this shows that a house is a finance drain unless it is used for income and a car also. Loans can in fact be an asset where they are a line of credit used to run a business which can also be an asset.
Investing is one of those personal things people seem to neglect when it comes to our ever so busy lives today. But always remember investing should revolve around that why and the what. When thinking the what always think of a mixture including investment property, shares, managed funds, superannuation and so on. This of course depends on how much you have or wish to invest and the time frame of your investment. The why is more important because investment should be based around retirement, a life plan and inflation.
Budgeting is something that happens in stages and is closely related to economic conditions within your control such as your level of income and expenditure related to your situation in life. Basically there are three stages in budgeting. The learning and fundamentals stage from 18-25 years of age. The get serious stage of development and building from 25-25 years of age. Lastly is the productive year from 35-50 where you set down the rest of you life living funds and finances.
To go to the Budget log use sheet simply click here.
To go to the Budget log simply click here.
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What about my business, can I borrow for it?
Simply put yes you can use equity at a lower rate and pre approved ready to go with out the hassle of having an overdraft or making business loans or having to ask the manager for more money. Most people don't even realize that the rate difference is substantial and the costs of using extra cash flow actually hold your business back not to mention lost opportunities to save by buying goods and services for your business on the spot *.
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What about my commercial property?
The same still applies, there is a higher rate of interest but you can still reduce your debt and have access to equity and all the facilities offered. The fees are a little higher and there is a requirement for fees to be paid for establishment. But if you compare the package against a bill facility or fixed rate loan the two don't even come close.
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Can I get into financial trouble and over extend?
This is always a possibility however two of our specialized and accelerated mortgage packages has a set limit of redraw established from the start and set down by the borrower. That is the limit of the line of credit plus the amount available on the credit card. That is the maximum amount of exposure and therefore a safe guard on over committing financially. Remember these products are not for everyone and some people need special help with them.
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I am a builder and find finance for my buyers difficult and often loose sales?
We have as part of our finance programs three excellent construction products. Added to these are take out facilties sand facilities for buyers who are also borrowers. Many borrowers are afraid to deal directly with the developer for financing their purchase but they also loose out to their bank or another bank when applying. Often simply because of bank policy. That's where we come in but we also have a selling tool that buyers love a discount mortgage for up to two years.
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