Equitimax - Vow Pinnacle Club 2012

2011 CEO PINNACLE CLUB MEMBER - Equitimax Pty Limited
2012 CEO PINNCALE CLUB MEMBER - Equitimax Pty Limited

Recognised as being on the top 5% of brokers within the Vow Aggregation Group.
www.vow.com.au

Pinnacle Club Members again in 2012

Newsletter - May 2012

Hi Robert, May 2012 What features do you look for when buying a new property? How about a sunny aspect, modern kitchen, good neighbours and a supermarket on the street corner? A recent survey of real estate agents posed the question - 'what do buyers want?' - uncovering some surprising results. Over the page we focus on successful strategies for refinancing - 'Refinancing Mistakes to Avoid' - as well as how to finance your dreams of property investment --- 'Affordable Property Investment'. Also featured in this issue; some handy tips for overcoming networking nerves, including preparing ice-breaker questions and conversation openers ('Network Success' - article 4.) Enjoy this newsletter and feel free to pass it on to family and friends. Kind Regards, Robert Ward & John McLennan Directors - Equitimax Pty Ltd Equitimax Pty Ltd PO Box 929 Chatswood NSW2057 Tel: 02 9411 5322 Mob: 0417 448 691 Fax: 02 9411 5200 1. Buyers Wish List 2. Refinancing Mistakes to Avoid 3. Affordable Property Investment 4. Book Review 5. Network Success 6. Did you know? Buyers Wish List Multiple bathrooms are rated as number one on a wish list of features that buyers look for in a new home. The results of a national pool of 114 real estate agents have uncovered some surprising research about what buyers want. The survey, commissioned by Turf Australia, found that 42 per cent seek more than one bathroom and 41 per cent desire a quiet street. A decent sized backyard was the next most sought out by 34% of buyers, followed by being close to a bus route or shops (20%) and off-street parking (13%). It seems that it is not any old backyard that buyers want, but one with grass - the survey found that nationally a lawn could add 18 per cent, or just over $75,000 in value on the average $420,000 home. Three quarters of real estate agents said buyers want a safe playing area for their kids while a third believe a lawn adds to the look and feel of a home. A lawn was shown to add the most value in Victoria (19%), followed by NSW (16%), Queensland and South Australia (12%) and WA (9%). As a seller, the key message is that it pays to put some time into making sure your backyard - particularly the lawn - is in tip top condition! Refinancing Mistakes to Avoid Avoid these common mistakes and refinancing your home loan should be a simple, trouble-free experience. Successfully navigating the refinancing process can enable you to take advantage of better rates and features, as well as provide finance for a renovation, construction or property purchase. Mistake # 1: A history of arrears Lenders want to avoid taking on risk, which is why they ask for at least six months of loan statements in order to check your conduct. They won't be impressed with missed/late repayments or going over the limit on any lines of credit, so wait until you have six months of clean history before making an application. Mistake # 2: Too many credit enquiries Every time you submit an application to a lender, it is recorded on your credit report. When the lender sees a number of applications they wonder why your application hasn't yet been approved by another lender - this may be all the reason they need to decline the application. It's our business as your mortgage broker to know how the criteria varies among different lenders and which lender you will have most success applying to. Mistake # 3: Not thinking ahead When shopping for a new loan, you're probably looking for one that will suit your needs now, but what about a few years down the track? If you move house or take a career break to raise a family, the loan you choose needs to accommodate these life changes. Mistake # 4: Failure to lock it in If you fail to lock-in the new favourable rate of interest on your new loan, it may increase by the time your loan gets processed. If you wish to lock-in a rate we can offer that facility. Mistake # 5: Not taking costs into account Sometimes the savings you could make by switching loans are outweighed by the expense involved. Make sure you know what up-front fees you will be charged and conduct a thorough cost-benefit analysis before you go ahead. Let us know if you need us to do this for you. Mistake # 6: Poor paperwork Not supplying all the supporting documents when putting in your application can send it back down the bottom of the pile and the waiting game will start over again. It's equally important when your loan is approved to review the documents properly before signing for a clear idea of the terms and conditions. As your mortgage broker we are experts at guiding borrowers through the paper chase and explaining what's in the fine print. Give us a call anytime about helping you successfully navigate the refinancing process. Affordable Property Investment A large bank balance is not a prerequisite for affording an investment property. There are many options available to help you get a foot in the door including using home equity, tax incentives and tailored investment loans. Equity If you already own a property, you can use its equity ('unrealised value') to fund your next property purchase. Equity is the difference between your home's market value and the balance of your mortgage, so when your property increases in value, the amount of equity also increases. Refinancing your mortgage allows you to access this increased equity to use as a deposit on another property purchase. The property you live in is not the only source of equity - you can use the equity in your business, parents' home or an investment property. Contact us for help in working out how much equity you may have available and how it can be used as a source of funding. Negative gearing Negative gearing lets you invest in an asset of greater value than you could afford using your own money. It occurs when you borrow to invest in an income-producing property, which costs more to own and maintain than the rental income you receive from it. This 'loss' can be claimed as a tax deduction, reducing the tax you are required to pay on income earned elsewhere, such as from a salary. Contact us to find out more about negative gearing and what precautions you should have in place to ensure this investment strategy works for you. Loan choice Choose your loan carefully because the way you fund your investment property will impact on the returns you receive. Investment loans differ in their structure and flexibility - while one might be designed to help you reduce your debt more rapidly, another might be designed to help you purchase more investment properties in the future. There are a range of loan features especially useful for investors such as interest only, interest in advance, mortgage offset, split loan and line of credit. We can work with you to match your investment goals to the right type of loan from our large panel of lenders. Book Review 'IMAGINE' By Jonah Lehrer Did you know that the most creative companies have centralized bathrooms? That brainstorming meetings are a terrible idea? That the color blue can help you double your creative output? From the New York Times best-selling author of How We Decide comes a sparkling and revelatory look at the new science of creativity. Shattering the myth of muses, higher powers, even creative "types," Jonah Lehrer demonstrates that creativity is not a single gift possessed by the lucky few. It's a variety of distinct thought processes that we can all learn to use more effectively. Network Success Networking is a great way to make contacts and establish relationships, but not everyone is good at small talk. Luckily there are tried and tested tactics for breaking the ice and getting a conversation going. 1. Be prepared Think through in advance some topics you can talk about. You don't need to have a shared interest to connect with others, you just have to share your interests - talking about something that you're passionate about will automatically engage those around you. You can also prepare some ice breaker questions in advance. Choose questions that are open-ended so the listener can't just answer with a yes or no. 2. Make the first move Finding someone to talk to in a room of strangers can be daunting but remind yourself it is preferable to standing by yourself. A good tactic for breaking into conversations is to make eye contact with someone, smile at them and ask: 'do you mind if I join you?' Another tactic is to ask someone else to break in and introduce you. If you have just arrived at an event and don't know anyone there, ask the organiser to introduce you. Once you have made your first contact, you can then ask them to introduce you to their contacts. 3. Listen People enjoy being listened to, so you don't need to always do the talking to engage with others. If you can get someone to speak about their experience and opinions - while you listen with interest - you have a firm foundation on which to build a relationship. 4. Help others Networking is a two-way street so you have to be prepared to give as much as you take. It's not all about what you can achieve, but also about what you can do to help others. 5. Follow up Don't let all your efforts in making contacts go to waste; always exchange business cards/contact details and follow up after the event. Jot down some details about the person obtained from your first meeting and you can use this as a conversation starter next time you make contact. Did you know? Buying off the plan and co-ownership may be worth considering if you are looking for an affordable way to enter the property market. Purchasing a property prior to construction (buying off the plan) can bring with it tax savings and capital gains, but it is not without its risks. Do your research, get third party advice and triple check the fine print to ensure you steer clear of unscrupulous developers and end up with an investment property that delivers good returns. Teaming up with a family member or friend (co-ownership) can help you raise a deposit and meet your investment goals sooner. It's essential that you treat the arrangement as a business deal and obtain legal advice to draft a co-ownership agreement setting out the rights and obligations of each person with a share in the property.

Property Investment

We are proud to be partners with BlueWealth Property.

Blue Wealth Property makes it easy to make great investment decisions. Their team is at the cutting edge of the industry and has a proven track record in using research to identify growth markets and strong investment opportunities. Their acquisitions team is dedicated to securing the best investment properties - and often negotiates exclusive offers for our clients.

BlueWealth offer a number of Free Property Investment Seminars throughout the year. If you would like to know more please contact us.

For more information Click Here

Allianz Insurance

We have recently formed a referral relationship with Allianz that enables you to access their suite of domestic insurance solutions including:

  1. Home Buildings & Contents Insurance
  2. Landlords Insurance
  3. Comprehensive Car Insurance

If your insurance is coming up for renewal or you would just like to do a comparison with your current provider, why not give Allianz a call to obtain a quote. A great feature of Allianz’s solutions is the fact that if you choose to pay monthly, there is no additional policy fee.

You could also save with a No Claim Bonus of up to 30% on your home insurance, and a discount of up to 10% when you combine your home building and contents cover on the same policy. You can also choose to protect your valuable personal items against loss or damage, anytime, anywhere in Australia (with limited overseas cover).

To receive an obligation-free quote today.
Email us at loans@equitimax.com.au
Or call Allianz on 1300 203 050 and don’t forget to quote either reference number:

                             John McLennan = EQU MJ01 *
                             Robert Ward = EQU WR01*

*This will indicate that you are an important client of our business. 

Please don’t hesitate to call me if you have any questions or if you don’t wish to receive communications of this type in the future. 

For more information Click Here

Property Reports - Let Equitimax Help

When you are buying a property knowledge of the property market can save you thousands of dollars and could prevent you from making a bad investment.
The key to knowledge is research

. . . . and Equitimax can help.

Equitimax can provide you with Property Reports from RPData, number one provider of property information, analytics and risk management services in Australia and New Zealand. We can then provide you with a number of reports to choose from:

What you need to do?

Give us a ring or email, let us know the property address and we can send you the report you want

Need a report - click here

Equipment Finance - Dealer Rates of 2-3%

It is not uncommon to see motor dealers offering finance at around 2% or 3% on new vehicles.

How do they do this?
The car manufacturer compensates the financier for providing the finance at the lower rate on condition that the car is sold at the recommended retail price.

What do they hope to achieve?
To reduce the level of excess stock holdings for certain vehicles.
If cars are being sold at a discount, this could devalue the brand and upset customers that purchased the cars at the old price.

What’s the catch?
You may not qualify for the lower finance rate if you negotiate a discount on the car price.
The period of the finance is normally limited to 4 years with little or no residuals.
The dealer includes excessive establishment fees in the amount financed.
You may be considerably better off waiving your right to the low interest rate offer and take the discount on the car.

What you should do.
DONT GET RIPPED OFF!
You could consider a buyers agent or make sure you getting the best price for the car.  At the least you should get an expert to have a look at the finance arangement and makes sure it is OK.  If you need assistance, please contact Equitimax and we can put you in touch with Darren Goodman from ProLease.  Darren not only looks are after our clients - he also looks after our own equipment finance. Both Robert & John have a chattel mortgages & commercial hire purchase financed through Darren.

For more information Click Here 

Congratulations to Vow Financial

Wholesale Aggregator of the Year - 2011 and 2012: MFAA Excellence Awards

Vow Financial have won the MFAA award for Wholesale Aggregator of the year for the second year running, which is a fantastic achievement considering they have only been in business as Vow for two years!

Vow Financialal thank all of our broker partners for your ongoing support over the last two years of us being in operation. 

The awards were held on Friday night at the Westin Hotel in front of a crowd of over 400 industry participants. This award is judged by a panel of Industry stalwarts who review each applicants strategy, information and communication. I had several people who were on this judging panel congratulate Vow on the quality of the submission and how much we had achieved in such a short space of time. A number mentioned that our diversification initiatives (Vow Wealth, Vow Legal & Vow Leasing) made us an easy stand out in the aggregation space.

This is a great achievement that the team at Vow Financial are very proud of and is an acknowledgement that aggregation is just more than software, compliance, commissions and lender agreements. This award continues to support our strategy of diversification and creating value for you - our broker partners.

Thank you once again to all of you. This award would not have been possible without your ongoing support and commitment.

Kind Regards, 

Tim Brown
CEO
Vow Financial

Newsletter - March 2012

Hello

March 2012

Equitimax Pty Ltd PO Box 929 Chatswood NSW2057 Tel: 02 9411 5322 Mob: 0417 448 691 Fax: 02 9411 5200

1. Price Bubble Debunked 2. What if... 3. Book Review 4. Fix or not? 5. Technology Trends 6. Did you know?

Price Bubble Debunked Despite talk of a housing price bubble, ANZ research shows there is little chance of a housing market crash this year. The bank forecasts prices to remain on hold or fall slightly, but not crash. In its recent property market assessment, ANZ argues that gains in house prices have been driven by lower interest rates and an increase in household income. The ANZ ‘Australian Housing Chartbook’ reports: “A combination of lower interest rates, falling house prices and rising household incomes has improved Australian house purchase affordability over the past 12 months.” “Despite the continued concerns about significant Australian house price overvaluation from some commentators, housing market fundamentals remain supportive.” This is backed up by ANZ compiled data on international house prices, rental yields and house price-to-income ratio comparisons – showing Australian house prices have not deviated from international trends. HSBC Bank chief economist Paul Bloxham agrees that there is little to fear from a price bubble. In the recent HSBC global research report ‘Australia in 2012’, he states there are three main reasons why prices won’t plummet: the majority of houses can service their debt; the undersupply of housing is growing at a greater rate than the decline in population growth; and there is strong demand for housing close to major urban centres. “We remain unconcerned about the possibility of a large decline in housing prices this year,” concludes Bloxham.

What if... Considering investing in property, but worried about all the things that might go wrong? Here we look at how to deal with a number of common ‘what if’ scenarios. What if I buy the wrong property? Rental yield, capital growth, tenant quality and demand should be upmost in your mind when searching for properties, which means not allowing your emotions or personal preferences to influence your decision. Think about what appeals to a tenant and what property types are in demand now and in the future. Researching your market is an important part of knowing what features tenants are looking for. What if I have problems with my tenants? Screening tenants before signing contracts is the single most important tip for protecting yourself against this scenario. If you choose to hire a property manager to screen tenants, make sure their process is thorough and detailed, like using industry databases that list bad tenants. Conduct as many background checks as privacy laws allow and always ask for the tenant’s references to include company names (not just mobile numbers) to ensure their legitimacy. Remain vigilant after the tenant has moved in by conducting regular general property inspections and promptly dealing with any issues that arise. Landlord insurance can cover you against damage by the tenant or loss of rent. What if I can’t get a tenant? This is a common fear among first time investors but you only need look at the low vacancy rates for rental properties to realise you are unlikely to have trouble finding tenants. Of course nothing turns potential tenants off faster than a run-down, dirty house, so for the greatest tenant appeal ensure the property is in good condition and the rent is on par with other similar properties in the area. What if now is not the right time to buy? Many property investors will tell you that ‘when’ to buy is nowhere near as important as actually ‘buying’. With a long term strategy in mind, so long as you take a reasonably cautious approach, a decent property is more than likely going to deliver growth in the long term. The longer you hold off, the more time you spend missing opportunities to enter the market and grow your wealth. What if I get the wrong advice? You wouldn’t take advice from an unqualified doctor, so don’t take property advice from smooth talking sales people. Do your research and triple-check all the fine print before you enter purchasing schemes like rent guarantees and off-the-plan purchases. Remember, if it sounds too good to be true, it probably is!

Book Review A Short History of Nearly Everything by Bill Bryson This book is a quest to understand everything that has happened from the Big Bang to the rise of civilization - how we got from there, being nothing at all, to here, being us. Bill Bryson's challenge is to take subjects that normally bore the pants off most of us, like geology, chemistry and particle physics, and see if there isn't some way to render them comprehensible to people who have never thought they could be interested in science. It's not so much about what we know, as how we know what we know. How do we know what is in the centre of the earth, or what a black hole is, or where the continents were 600 million years ago? How did anyone ever figure these things out? Bill Bryson takes us with him on the ultimate eye- opening journey, and reveals the world in a way most of us have never seen it before.

Fix or not? A drop in fixed rates by a number of banks and lenders has increased the number of borrowers who are fixing their home loans. If you decide to do the same, make sure you are fixing for all the right reasons not just the lure of a cheap rate. Be fully informed of the implications of locking into a fixed rate as you don’t want to later regret your decision if variable rates drop. Your financial situation and personal preferences should always be the guiding factors in whether to choose a fixed or variable home loan. Both loan types have their pros and cons so talk to us for the best advice about what product suits your budget and lifestyle. The insurance of fixing Choosing a fixed loan is similar to buying an insurance policy; it gives you certainty over a period of time. In the current climate of global economic upheaval, a fixed rate can be a good option if you are on a tight budget because it allows you to know exactly how much each repayment will be. On the downside, many fixed loans charge for extra repayments and early payout (break fees). Seek advice before you sign the contract on how the break fees are calculated in case you have to sell or refinance within the set term. The more rates fall, the higher the break cost because the re-financer has to compensate themselves for the loss of re-lending the money at a lower rate. The ups and downs of variables Variable loans have more features and greater flexibility than fixed loans but as the rate fluctuates according to various market conditions they can be risky if you’ve overcapitalised on your loan. If your variable rate falls, you may be making lower repayments than if you had fixed your rate but if the variable rate rises, your monthly repayments increase. When choosing a variable it’s important to plan for the possibility of rate rises and be able to adjust your budget accordingly. Other options Split rate and capped loans are hybrids between fixed and variable loans. Split rate loans allow you to divide your loan between fixed and variable interest rates, which gives you a foot in both camps. Capped loans are often offered as honeymoon or introductory loans and under this type of loan the interest rate is fixed for the capped period. During this period, the interest rate cannot go higher but it may go lower if the lender’s standard variable interest rate falls below the capped rate.

Technology Trends Just as the fax machine has been relegated to dinosaur status, so too will email be considered old hat. Analysts predict that 2012 will see technologies become more social, more connected and increasingly voice controlled. Embracing the rapid movement in technology is not always easy but investing the time and effort to take on a new technology almost always pays dividends. Let’s look at what’s in store for us over the coming year. Voice Command The success of Siri (a speech-recognition ‘personal assistant’ that's built into all Apple iPhone 4S smartphones) will prompt this type of technology to be used in other handsets, computer tablets (mobile computers), PCs and on websites. Email on the Out The popularity of social networks and messaging products marks the decline in email usage. Downloading services that allow the sharing of links has also proved quicker and more smart-phone-friendly than email. App on the Up App stores will grow in the number of available options as more companies come forward to help free us from content overload. Windows 8 - Touch Windows 8 Touch will bring ‘touch’ into the mainstream PC market, narrowing the gap between notebooks and tablets. Users of Windows 8 devices will be able to tap and swipe their way to touch-based applications via big, touchable panels. Social media Social media will continue to grow and insert itself into even more aspects of daily life, particularly those that are geared to photo and video based interaction. Social networks will add more features and get even more competitive, with Google+ trying to dominate the market. Mobile capabilities There will be an increase in mobile phone capabilities in every aspect and a growing number of internet users will demand access to content through mobile devices. Phone hardware and software will become more sophisticated and phone video will continue to improve in quality. Getting Thinner Our TVS, PCs and tablets are thin – so too will our laptops become as thin as manufacturers can allow. The emphasis will be on laptops that look great, run quietly, and are easier to carry.

Did you know? If you apply for a fixed rate loan, the advertised rate offered is current only for that day. By the time your home purchase happens, that rate may no longer be on offer unless you opt for a Rate Lock. Some lenders offer this service automatically, while others require you to pay a fee to put the rate lock in place.

Big Switch sees small finish

Except from BrokerNews 20/02/2012
By Adam Smith

Consumer watchdog CHOICE has closed its controversial Big Bank Switch campaign with only one in 20 registrants potentially switching lenders.

The group said the campaign - a joint effort with One Big Switch - has now closed, after attracting 40,000 registrations. Of these 40,000, CHOICE said 2,000 "went on to have discussions" with lenders participating in the promotion. Those who switch lenders stand to save an average of $375 each, the group claimed.

Non-bank lenders including Firstmac, Resimac and Mortgage Ezy partnered with the campaign, which saw CHOICE receive a flat $250 per switch. The group, previously critical of mortgage broker commissions, said it would use the money received for its referrals to "help pay for the running of the campaign".

A CHOICE spokesperson said the group had not joined in any further campaigns with One Big Switch, and was "not involved in any current group switching around mortgages, energy or any other products". However, the spokesperson defended the value of the Big Bank Switch promotion.

"We believe that group switching has great potential to create savings for consumers in essential areas like banking products and energy," the spokesperson said.

Though only 2,000 of the initial 40,000 registrants switched lenders, CHOICE claimed that "many more" used the campaign as leverage to secure a better offer from their current lenders.



http://www.brokernews.com.au/news/newsletter/122397/

Broker market share set to grow: NAB

Monday, 20 February 2012

Simon Parker - theadvisor.com.au The head of NAB’s third party mortgage business believes brokers will become more popular as an increasing number of time-poor customers grapple with a complex array of financial products. In an interview with The Adviser, Antony Cahill, the executive general manager of growth partnerships – a NAB business unit which brings together a number of entities that provide products and services to the mortgage industry – said mortgage brokers now accounted for up to 48 per cent of NAB’s loan transactions, and this was likely to grow. “I think it will continue to get larger, and I think there are a number of reasons for that as we see regulation coming through and continued professionalisation,” he said. “People are becoming more aware that financial products can be quite complex – and they are seeking help, guidance and advice. Brokers are ideally placed to provide that.” Since his commencement in the role 15 months ago, Mr Cahill’s Growth Partnerships portolio has posted growth of more than six times system. He said the relationship between banks and mortgage brokers had matured in recent years, which will support ongoing growth of the broker channel. “I think the industry has come a long way,” he said. “Ten years ago, in a sense there was a bit of a confrontational relationship. “Ultimately, we’re all part of that end-to-end business, and we have valuable relationships with brokers to ensure we give great service to clients, and everyone has a role to play.” “From our perspective in NAB, we want our customers to choose which channel they come through,” he added. Link to article http://www.theadviser.com.au/breaking-news/6733-broker-market-share-set-to-grow-nab

Standard Variable Rates - The Truth

We have recently seen banks lift and decrease their Standard Variable Rates and some banks now claim "We have the Cheapest Standard Variable Rate". Other lenders will say they are: "Always cheaper than the Major bank's Standard Variable Rate".

The Reality is that almost no-one pays the Standard Variable Rate.  

(if you are paying the Standard Variable Rate - talk to us now)

If all you were looking at was the Standand Variable Rate then it would be easy to work out what is the cheapest rate. See below a table of Standard Variable Rates as at 14th Feb 2012

Lender	Standard Variable Rate
Homeside/NAB	7.34% pa
ANZ	7.36% pa
CBA	7.41% pa
Suncorp*	7.43% pa
Westpac	7.46% pa

What is the actual rate you will pay?
It all depends on what Discount are you getting?

What the lenders do not tell you is how much of a discount you can get of these rates. Some lenders also offer you a 0.50% discount and some will offer 1.0% or more.

How much of a discount can you get? Well that depends on a lot of things.
- How much you borrow
- How much equity you have
- Other loans you have
- Your Knowledge of the market (ie what is the Competituion Offering)
- The competency of your broker

Below is an example of the discounts offered for a $550,000 loan with a Lending Ratio of 70% (ie 30% equity position) as at 14th February 2012. As you can see the Standard Variable Rate is part of the story but it really does not matter. The actual Rate you pay is what counts (and this is before we even look at fees, charges, features and suitability of the loan). If you need advice - come and talk to us.

Lender	Standard  Variable Rate	Discount Offered	Actual Rate
Homeside	7.34% pa	0.95%	6.39%
ANZ	7.36% pa	0.90%	6.46%
CBA	7.41% pa	0.80%	6.61%
Suncorp	7.43% pa	1.03%	6.30%
Westpac	7.46% pa	0.80%	6.66%