Teach Me Money

• You've received an inheritance - here's what you could do with it...

  Spare money: what even is that? We’re in the middle of a cost of living crisis and naturally, there isn’t a lot of extra cash in the bank for most people. However, there are circumstances where people do unexpectedly receive a windfall of money, such as an inheritance from a death in the family, a sold asset or a payout. Receiving an unexpected lump sum can be bittersweet, because while it’s exciting, there can also be a bit of confusion as to what to do with it. As we know, you can only spend money once. So what’s the best way to make the most of your new financial situation? In this episode, I’m taking you through some options and what I think is the best way to approach it:Identifying your financial goalsPaying off debtsSaving for propertyLowering your mortgageSuperannuation and investmentsUltimately, the best choice for your lump sum will depend on your personal circumstances and aspirations. Whether it's providing for your family's needs, saving for retirement or ensuring your children’s education, these strategies are not one-size-fits-all. However, they all follow one golden rule: make your money work for you. Use it with purpose, and you're likely to see it multiply in value and opportunity.So, reflect on these options and decide what truly feels right for you. You just might find that unlocking the potential of spare money could lead you to a bright financial future.LinksBook a free 15 minute discovery call with Alissa: https://calendly.com/gtagWant to know more about commercial property? Join our commercial property mailing list here:https://preview.mailerlite.io/preview/145360/emails/143452890515637989Website: https://goldentrianglefinancegroup.com.au/

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• Think Bigger: Using Equity to Buy Commercial Real Estate

  If you have equity in your home and are wondering what to do next, chances are you’ve thought about using it to buy a residential investment property. But what happens when you want to take your property investment to the next level? There is another way to successfully grow your equity, set yourself up for retirement and see higher yields: commercial property investment.Whether you're a seasoned investor or just beginning your financial journey, understanding the nuances between commercial and residential property can open up a world of opportunities.In this episode, we'll explore:Breaking Down Commercial Property InvestmentCommercial properties have a potential for higher rental yields, making them pretty appealing. Imagine earning yields from 5% to over 10%; that’s starkly higher compared to the typical 5% yielding residential counterpart.A commercial property lease also often covers most expenses; the tenants pay for water, rates, and even repairs—sometimes making it a more hands-off investment experience. Who's Suited for Commercial Property Investment?While residential properties offer a gateway to owning physical assets, their loans often come with easier terms—sometimes covering up to 95% of the purchase price. In contrast, commercial property requires heftier upfront investments, with deposits ranging from 20% to 40%. Utilising your property equity can bridge this financial gap, activating the power of otherwise dormant assets.My Personal Commercial Property JourneyMy husband John and I once invested extensively in residential properties across Queensland, a route initially taken to ease our tax burdens. But the constant management and cash flow constraints during sensitive life periods (like maternity leave) proved taxing. I share why the switch to commercial property in 2019 was a game changer for us.Property investment, whether commercial or residential, is rife with complexities and rewards. It's vital to weigh the potential return against personal circumstances and market volatility. If our discussion on commercial property has struck a chord with you, don't hesitate to reach out. Our team includes a buyer’s agent who would love to explore how commercial property might fit into your investment strategy.Until next time, take care and enjoy your money management!LinksWant to know more about commercial property? Join our commercial property mailing list here:https://preview.mailerlite.io/preview/145360/emails/143452890515637989Book a free 15 minute discovery call with Alissa: https://calendly.com/gtagWebsite: https://goldentrianglefinancegroup.com.au/

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• Super Fund Strategies: Property Loans in Your SMSF

  I probably get two calls a week from clients asking me how to buy property inside their Self-Managed Super Fund (SMSF). SMSFs can be a little tricky to get your head around, and it’s a rabbit hole my husband and I are still going down almost two years into deciding to set one up ourselves. However, I’m going to break things down and give you an overview of what to expect if you’re going down the SMSF property purchase road. We'll discuss:Why You Would Use Your SMSF to Buy PropertyOne of the main reasons people turn to their SMSF for property investment is the limitation in borrowing capacity outside of the fund. Often, they find their borrowing power maxed out, but see potential in the nest egg they've accumulated within their super fund. Understanding Costs and LimitationsAcquiring property within an SMSF does come with its challenges and costs. Unlike purchasing a home outside your SMSF, where bank-related costs are relatively minimal, buying within an SMSF involves considerable expenses. This includes application fees, valuation fees and additional costs for commercial properties.Assessing Borrowing CapacityTraditional lending considers personal income, expenses, and existing debts. In contrast, SMSF borrowing bases its calculations on annual contributions, the rental income from the acquired property, and any income from existing assets within the fund.Equity, Set-Up and Management CostsHere's a key difference: unlike property outside super, you can't leverage the equity of a property inside your SMSF to buy more. If a property within your SMSF appreciates, you must sell it to utilise its equity for further investments. This limitation can be a significant drawback.Before venturing into SMSF property purchase, I’d suggest consulting with an accountant and, if needed, a financial planner. Educate yourself well, because managing an SMSF requires quite a lot of work, dedication and precision. If you’re ready to jump into your SMSF property purchase adventure, I'm ready to help you - so be sure to reach out!LinksWebsite: https://goldentrianglefinancegroup.com.au/

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  11:47
• First home buyer grants

  Buying your first home is a significant milestone, filled with excitement, anticipation, and let's be honest, a little bit of stress, too. A lot of clients that I speak to fine the whole process quite overwhelming, and I understand why. I've got some valuable information to share that might just make your journey to home ownership a little smoother. I’ll be covering three essential government initiatives designed to help first-home buyers in Australia: Stamp Duty Concessions, the First Home Owner Grant, and the First Home Loan Deposit Scheme. These schemes can offer you substantial financial relief if you're eligible, so it’s worth reviewing what options may be available to you.Understanding Stamp Duty ConcessionsFirst up, stamp duty—what exactly is it? Essentially, it's a state government tax applied to the purchase price of a property. The good news is, if you're a first-time home buyer, you might qualify for significant discounts on this tax. However, there's a cap; for instance, in Queensland, the purchase price needs to be under $600,000 to benefit from the concession.Remember, the particulars of this can vary from state to state, so it’s crucial to do some research specific to where you're buying. A simple Google search with terms like “Stamp Duty Calculator [Your State]” can give you a quick estimate of what you might have to pay.The First Home Owner GrantNext on the list is the First Home Owner Grant, a federal initiative. This is a straightforward grant of $30,000 for eligible buyers, but there are some strings attached. The new house must be under $750,000, and it has to be recently built. You’ll need to live in this new home for at least six months and move in within a year of purchase. Unlike some schemes, there's no income test for eligibility, making it accessible for most, as long as you plan to live in the home.First Home Loan Deposit SchemeLastly, let's talk about the First Home Loan Deposit Scheme. This initiative allows you to purchase a home with as little as a 5% deposit without the added burden of paying Lenders Mortgage Insurance (LMI). The key criteria include your income; if you’re single, your income can't exceed $120,000, and for couples, the limit is $200,000. There are also caps on the property value depending on your region—for example, up to $650,000 in regional Queensland.One thing to note: lenders might require you to use your entire deposit, even if it exceeds the minimum requirement for this scheme. While this could be inconvenient, it's all about striking a balance between getting into your home and maintaining some financial wiggle room for expenses like renovation and furnishing.Understanding these three main grants—Stamp Duty Concessions, the First Home Owner Grant, and the First Home Loan Deposit Scheme—can provide critical financial support as you step into the intimidating, yet rewarding journey of buying your first home. If you’re looking for personalised advice on your borrowing capacity, don’t hesitate to book a call with us.LinksWebsite: https://goldentrianglefinancegroup.com.au/

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  10:43
• Using equity instead of cash to buy another property

  What exactly is equity? It’s one of those financial terms that gets thrown around frequently, yet often leaves people scratching their heads. In this episode, we'll break it down and also explore how you can leverage your property's equity to purchase another property, substituting it for cash.We'll discuss: Equity Explained: The BasicsCapital Growth and Its Impact on EquityWhy Equity Matters and How to Use ItLeveraging Equity for Property InvestmentA Practical Example of Equity in ActionUnderstanding the Borrowing ProcessMaking the Most of Your EquityAt the end of the day, understanding how to make the most of your equity can set you on a path to financial growth and opportunity. If this conversation has sparked an interest in exploring your own equity options, don't hesitate to reach out. We'd love to assist you in unlocking the financial potential of your property and guide you through the possibilities.LinksWebsite: https://goldentrianglefinancegroup.com.au/

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