Consumer News
Divorce, property settlements and the GFC
Couples have been forced to re-think divorce and its procedures due to the Global Financial Crisis (GFC).
It seems that the GFC is temporarily saving marriages, at least for the potential divorcees that have sought financial advice. At a time where shares and property values have hit rock bottom, marriages that have done the same are waiting out the GFC. It is undeniable that the GFC is also a major cause of these pending divorces due to the financial pressures and anxiety that put such a large strain on relationships.
Is 2010 a good year to purchase an investment property?
With house prices expected to soften early this year and forecasted to pick up later in the year, 2010 looks like it could be ideal for property investment. Nevertheless, it is important to be aware that these predictions come in spite of solid growth recorded in the house price index.
Buying vs. Renting
The age old debate of buying vs. renting has become even more difficult with recent research proving that buying property is becoming cheaper than renting in many parts in Australia. It was found that in 94 suburbs the monthly cost of renting a house is greater than the average monthly mortgage payment. This has forced many people to stop and reconsider whether they’ll rent or buy a property hence we put together an article full of the pros and cons to help you make a more informed decision.
Do you have Unclaimed or Lost Super?
If you have ever changed your name, job or address, you may have lost some super and appear on the Australian Taxation Office’s (ATO) lost member register (LMR).
The members of all regulated super funds (excluding self-managed super funds) that have been reported as lost, are listed on the LMR. People may end up on the register if any of the following scenarios apply:
Your Land Tax Is Now Due – Do You Know What You Owe?
Land tax is a tax on the land you own in NSW as at midnight on 31 December of the previous year. Land Includes:
• Vacant land
• Land where a house, residential unit or flat has been built
• Holiday homes
• Company title units
• Residential, commercial or industrial units
• Commercial properties, including factories, shops and warehouses.
Are you managing your finances, or are they managing you?
With the arrival of 2010, now is probably a good time to plan your finances for the rest of the year. However, being able to effectively manage your finances is not something that many people are good at. Often we find that it is quite the opposite, our finances are managing us. So what’s the answer?
Maximise the return on your investment property - know what expenses you can claim
Owning an investment property can be a rewarding experience, both financially and emotionally. Apart from the purchase cost of the property there are numerous other costs involved such as bank fees and interest, body corporate fees, conveyancing costs as well as stamp duty and other tax liabilities.
However, all of these extra costs need not leave the avid investor completely out of pocket. With a little tax knowledge and some professional advice you may be able to claim a majority of the expenses associated with the purchase, ongoing maintenance and the process of generating income from your investment property, as tax deductions.
Increased Foreign Investment Thresholds to bring more overseas investment to Australia
In an attempt to attract greater foreign investment to Australia the Federal Government has recently doubled the current foreign investment thresholds.
Current legislation dictates that foreign investors looking to purchase a share of 15% or more interest in an asset valued at $100 million or more must apply to the Foreign Investment Review Board (FIRB) for approval. Additionally, there are other different thresholds that apply for offshore takeovers, US investors and US offshore takeovers.
Beware of illegal schemes offering early access to super
There is currently a range of illegal schemes and plans that exist that are offering unsuspecting taxpayers access to their superannuation savings before retirement. The promoters of these plans will tell you that they are able to access your super savings for reasons such as paying off debt, buying a house or car or even going on a holiday. These schemes, as enticing as they may seem, are illegal and heavy penalties apply if you decide to participate in them.
Changes to personal bankruptcy laws reflect change in economic climate
Attorney-General, Robert McClelland has recently released details of proposed changes to existing personal bankruptcy legislation.
The changes are now available for public consultation and are intended to modernise the current legislation to better reflect what is actually happening in the community. Specifically, it is addressing the fact that we are increasingly seeing a larger number of bankruptcies in relation to consumers with a small amount of assets and low income levels. Where previously bankruptcy was more commonly associated with individuals who were often simply attempting to avoid paying their debts, bankruptcy is now being increasingly accessed by those who have simply found themselves having a hard time financially.
