Financial Planning News
CGT basics for property investors
Perhaps one of the most significant considerations when it comes to investment properties is Capital Gains Tax (CGT). Whilst this is something that only comes into effect on disposal of the asset, it is important to be aware of how it works and the potential effects on your earnings. While investing in property can be an exciting and rewarding experience, it is not something to be undertaken without adequate research and preparation.
Using losses on overseas investment income against Australian income
Any loss you incur from a negatively geared overseas property can be applied against your Australian domestic income. Negative gearing refers to borrowing money to invest where the return from the investment is less than the borrowing costs. For example, the rental income from your investment property is less than the interest payments on the loan used to purchase the property. If you own an overseas property, you are able to claim your negative gearing losses on that property against your Australian-sourced assessable income.
Planning for Business Growth
Growth happens differently in every business and you should prepare well before entering into a significant growth phase by considering the impacts that growth can have. How and when you want to grow your business should form part of your overall business strategy. Working hard to generate positive word of mouth, brand awareness and maintaining an excellent business reputation is essential in opening up opportunities for growth.
The Importance of Setting Goals for Your Business
Whether expressed explicitly or not, most small business owners and managers have goals for the business they would like to achieve. It’s important to clearly state the goals that you have so that you possess a precise view of the short-term and long-term aims of the business, and can ensure that you are working towards them rather than just looking after the day-to-day needs of the business. Setting goals can also help with the process of determining what needs to be done to improve the business and should always be:
Who will get your death benefits: beneficiaries or the tax office?
A death benefit from a super fund is a payment a beneficiary receives because of the death of another person who was a member of that fund. A death benefit is typically paid from a super fund, retirement savings account provider, an approved deposit fund, or a super annuity provider. Generally this death benefit will have been bequeathed to the designated person; since understandably, most people try to ensure their death benefits go to the correct person of their choice. Not to mention their wish for their estate not to be liable for excess tax and reduce the amount bequeathed to loved ones.
Choosing an investment property - Units outperform houses
The decision over what type of property is the most beneficial, when it comes to investment properties, is one that has been debated for many years. Levels of capital growth, purchase prices and the amount of rent the property is expected to bring in are all things that need to be taken into account. A recent study has shown that units and apartments have delivered better capital and rental growth than houses throughout the last 5 years.
SME Challenges in 2011
Every business faces challenges, especially SMEs (Small to Medium Enterprises). There are a few specific challenges that have been forecasted for the year ahead, which business owners are likely to encounter during 2011. If these are potential problems for your business, start to think of ways to combat these tribulations beforehand. It is a good idea to create an up to date business plan for 2011 which will outline your goals for the year and help you to stay on track should you be faced with any challenges.
Should an SME own or rent its own premises?
The challenge of deciding between buying and renting your business premises is one that faces many small business owners. Since this is one of the biggest financial decisions you will make, it is important to take into consideration the advantages and disadvantages of each and to decide which option will be most beneficial for you and your business. It is important that you make this decision before searching for a property; in order to streamline your search in sourcing an appropriate location and to be clear on exactly what kind of property you want your business to be located in. Whether you are looking for a property to start a new business or simply relocating an existing business you should consider the following when making this important decision:
Dreaming of a debt free Christmas?
The count down to Christmas is one of the great times of the year, where family and friends come together to exchange presents and enjoy a big feast. However, as a result of this Christmas time is the largest period of time where people incur debt. Unless you create and abide by a budget it can be extremely difficult to purchase all of the food, presents, and other Christmas goodies without swiping the credit card; high interest rates can be devastating in the months to follow. With a little motivation and planning you can possibly start the New Year with no debts to pay.
The Current Status of Mortgages
According to recent statistics the mortgage sales in Australia during last October were the lowest in four years. There was a 17.5 percent decline in volume since October last year and a 4.3 percent decline from September 2010. With this in mind, and the changes expected from the Australian Government later this week, we thought we would update you with some recent mortgage developments which have the potential to further impact the market.
