That Mortgage Guy

Are you looking for a way to diversify your superannuation portfolio and achieve your retirement goals? Have you considered self-managed superfund lending? First things first, any decision around this or discussion must be held with a financial planner and your accountant, the right advice is paramount to ensure you stay compliant to the laws that sit around SMSF lending.  Self-managed superfund lending is a type of investment loan that allows your SMSF to use its funds as a deposit to purchase an investment property and borrow the remaining amount required to fund the purchase. This can allow your SMSF to invest in properties that it may not otherwise have the funds to immediately purchase. The benefits of SMSF lending include: Potential capital growth and rental income from the property Tax advantages such as deductions for interest and depreciation, and lower capital gains tax rate. Greater control and flexibility over your superannuation investments Ability to leverage your sup...

As a homeowner navigating the intricate world of mortgages, it’s essential to explore all available options to optimise your financial strategy. One such tool that can significantly benefit borrowers is the offset account. In this article, we’ll delve into what offset accounts are and how they can work to your advantage. What is an Offset Account? An offset account is a financial product linked to your mortgage, typically a home loan. It functions as a transaction account where your salary, savings, and other funds are deposited. The outstanding balance in this account is then subtracted (offset) from the balance owing on your mortgage before interest is calculated. How Does it Work? Let’s break down the mechanics of how an offset account operates: 1. Linked to Mortgage: Offset accounts are usually linked directly to your mortgage account. This linkage allows the funds held in the offset account to directly offset the principal of your mortgage, reducing the interest payable. 2. In...

Let’s delve into the differences between a finance lease, commercial hire purchase, and chattel mortgage: Chattel Mortgage: Ownership: With a chattel mortgage, you own the asset from the start of the finance term. Security: The assets you purchase act as security for the loan. Interest Rates: Generally, chattel mortgage interest rates are competitive. Tax Benefits: There are GST benefits associated with chattel mortgages. Use Case: Ideal for businesses that want full ownership of the asset immediately. Finance Lease: Ownership: During the lease term, you don’t own the asset, but you may have the option of ownership when the lease ends. Ownership Benefits: You have the option of full actual ownership at the end of the term. Tax Deductions: Business tax deductions are available on lease payments. Use Case: Suitable for businesses that prioritize flexibility and want ownership benefits. Commercial Hire Purchase (CHP): Ownership: Similar to a finance lease, CHP involves leasing a...