It now more important than ever to fully disclose all your liabilities and keep all your payments up to date.

All the major lenders now have access to more data about you when you apply for a loan and many of the smaller lenders will be gaining access in the coming months. This is through your credit report and is called Comprehensive Credit Reporting.

Going forward the lenders you apply to will be able to see:

The financial institution where the account is held - ANZ, NAB etc.The type of account that is held - Personal Loan, Home Loan, Overdraft or Credit CardAccount dates - open and closed (where applicable)Current account liability (for loans, the balance plus redraw amount) or credit limit

If you aren’t sure what is listed on your credit file, you can request a free copy using one the following links:

Illion - www.checkyourcredit.com.au

Experian Australia Credit Services - www.creditsavvy.com.au

Equifax - www.mycreditfile.com.au

Get in touch to find out more about how Comprehensive Credit Reporting may impact you.

For the third year running, we have been listed as a Local Business Awards Finalist in professional services. After our win in 2017, we are hoping to win again in our new location of Cumberland!

For the past 30 years, the Local Business Awards have recognised and acknowledged outstanding local businesses and their people who go above and beyond in providing an exceptional customer service experience.

To learn more: Click Here

When investing in property most people will need to obtain a loan from a bank or lending institution. The lender will use the property as security and will agree to lend a percentage of the value of the property, for example 80%. This is referred to as the Loan to Value Ratio (LVR).

As part of the loan approval process the lender or your broker will arrange a valuation on the property. Now most of us will assume that the purchase price is the ‘value of the property’ – after all, it was set by market forces and is a true indication of what the market is willing to pay. The lenders and valuers do not necessarily see it this way.

Lenders instruct valuers to take a very conservative approach to valuations. They use historical sales data to compare values within a small geographical area and also take into consideration broader market conditions. Some of these considerations are subjective. Sometimes they only use the sales data (known as a Desktop Valuation) and sometimes they only drive past the property (known as a Kerbside Valuation). In the current market we are seeing very conservative valuation results.

Preparation – The Key to Success!

Let’s face it. Investing in property is a big decision and a valuation shortfall can leave you questioning your decision. It is important to have done your research before committing to a purchase and getting the right advice to help you make the right decision. You need to know your numbers and manage any potential risk by:

Creating a financial buffer – either equity or savings so you can cover any valuation shortfallDo not wait until the last minute to apply for financeConsider a number of lender options so you can mitigate the results of a valuation – not all valuers and lenders are equal!

I am available to answer any questions and help you to achieve your property dreams. Contact me on 0448 258 716 or by email to rebecca@sattouts.com.au.

With all of the confusion surrounding the Royal Commission into financial services it is time to re-evaluate how you deal with your bank or other financial institution.

The banks still have not learned the lesson that it is their valued customers that allow them to continue to return record profits year after year.

The banks offer special deals to new customers and yet do not advise their existing good customers that they are able to access these cheaper loans simply by asking. When was the last time that your bank contacted you and advised that the current loan you have is inappropriate for your current circumstances and that you should review your facilities? When have they ever pointed out to the customer the pitfalls of taking out inappropriate loans?

The banks are now telling everyone that if they did not need to pay brokers’ commissions that they can offer a cheaper loan rate and they expect people to believe them? Really!!!!!!

The fact is that the banks do not want brokers to advise customers which product best suits their personal situations. A good broker will always look after the best interests of his/her customers and can explain all of the conditions imposed on any loan. Some loans may look cheaper because of the ‘interest’ rates charged but after examination of the “on costs” such as application fees, valuation fees and annual or ongoing package fees the actual loan cost is more than a slightly higher interest rate with no fees. Will your bank tell you that?

At Sattouts, we provide our valued clients with a comprehensive service, which can include tax advice, financial planning advice through our trusted referral partners and also legal services ranging from the usual conveyancing when buying or selling property to wills and probate and other commercial & family law matters.

Our brokers attempt to review all loan customers’ existing finance facilities at least once per year and will advise if a better deal is available from your existing lender OR a competitor and whether it is financially viable to move your loans. We offer this service as part of our normal business practice as we treat all of our clients as family and take great pleasure in seeing our clients become successful in their businesses.

Sattout Accounting has been in business for over 35 years and we have been finance brokers for the past 20 years and are now acting on behalf of 3rd. generation clients. We are proud to accept the trust placed in us by our clients and strive to provide a professional service for all.

So you have seen media reports that borrowing money today is harder than it has ever been. Why are the banks making it so difficult? What has changed to cause a “tightening”? Can I still get a loan?

Since 2014 the Australian Prudential Regulation Authority (APRA) has been introducing measures for the banks to follow where they see a potential issue. These have resulted in a change in the appetite in the more “risky” investment loans that they will grant and the cost of these to you, the customer. In effect, APRA’s measures have contributed to a slowing down of growth in the investment lending market. For those who are using equity from existing properties, have saved healthy deposits and/or choose to make principal and interest repayments on their investment loans, the impact has been minimal.

In 2017 the Federal Government announced a Royal Commission into the banking industry. Another set of banking rules changed.

And, the property market in Sydney and Melbourne has slowed.

In essence that this means for you is:

Your living expenses will be scrutinised and compared to benchmarks. At least 3 months’ history needs to be provided to confirm your regular spending patterns, regular direct debits and to uncover any liabilities that you may not have disclosed or realised are liabilities including ZIP Pay and AfterPay. Be prepared to answer lots of questions about your transactions. Our clients are often having to explain parking fines!You may be assessed at a higher interest rate and loan repayment than you were in the past. This will be across all your debts. Most lenders are looking at your loans as if the interest rates were 7.25% and needed to be repaid in full over 25 years or the remaining loan term if that’s shorter.It may be more beneficial to begin repaying your investment loans from day one as the interest rates for Interest Only facilities may be higher. A conversation with your accountant before getting a loan is more important than ever before.Even if you pay your credit cards in full each month the limits and a minimum payment (up to 4% of the limit) have to be included in the banks affordability assessments. Keep your limits to a minimum.You will need to provide more documents to your broker or lender. The checklists we have to follow are getting longer and longer and longer.If you are over 40 years old be prepared to discuss your retirement plans and exit strategy for the loan. Copies of superannuation statements and details about how you will repay the loan in full will be needed.Your existing properties may not be valued at what you think they are worth. With a slow down in the market comes nervous valuers and more conservative property value estimates.All of these changes can mean that the processing of your loan application will take longer than it did in the past.

Pre-approvals are your friend. Now is the time to speak with us about your plans. We will work with you to get a solid pre-approval in place to ensure that you can fulfil your property dreams in 2019.

What a start to 2019!

We have hit the ground running after the Christmas break and are very happy to be helping many clients secure properties in the current market so early into the new year.

With the heat having been turned down on property prices many investors and first home buyers are taking the opportunity to snap up some bargains. From all across Australia we have seen some great purchases on the Gold Coast, in Newcastle, Western Sydney, Inner West Sydney and country NSW in just the last few weeks.

Our home owners are enjoying interest rates as low as 3.55%. Recent changes to APRA’s guidelines for the lenders has meant some reductions in investment interest rates too across a few lenders. The media is reporting lots of negativity in the lending market. If you have any questions give us a call and we will happily review your current loan structure and rates obligation free.

We are very excited to announce some changes to our team. Sharon Teran and Sid Sarkis have been with us for some time now and are moving into new roles in 2019.

Sid will be providing exceptional customer service as our Loan Support Officer. He will be helping us to keep things flowing with our loan submissions and will be keeping you in the loop along the way. He will also be focusing on car and equipment finance so if it’s time for an upgrade give us a call. Sharon will be working closely with me to get your finance applications approved quickly to enable you to secure the property of your dreams.

We have also welcomed Sarah Stanton to the team. Sarah is an experienced bookkeeper and has come on board 3 days per week to work with the accounting team. Welcome Sarah!

We would love to hear from you with your feedback and questions. To know more about how we can help you please call me on 0448 258 716 or email to rebecca@sattouts.com.au.

From all of us at Sattout Accounting Services, we wish you a healthy, happy and successful 2019.

It’s fascinating being a mortgage broker.

Why? Because you get to see how people make decisions. While helping hundreds of clients finance their investment properties, I noticed very clearly that a lot of my clients base their decisions on three areas; what they have read in the media, the advice of well-meaning but ill-informed family and friends, or what they know (for example, buying investment property where they live because it’s familiar).

Are you one of those people? This is where a research house can help you!

What is an investment property research house?

For property investors, getting to know the dynamic property market requires a lot of time, deliberation and agility. An investment property research house can help ease the burden on investors by sharing in-depth knowledge on market trends, including growth areas, hot spots and positive and negative cash flow areas.

An investment property research house is comprised of a team of experts in the field of property investment. They conduct research into the macro and micro factors which influence growth and decline and assess property’s desirability. Utilising detailed property data, they are equipped to advise investors on the best properties to invest in, in order to achieve the best possible return on investment.

A wise property investor will manage two main factors when buying property, knowledge and emotion. They will gain as much knowledge as possible on the property market by speaking to experts in the field and they will keep emotions at bay when making any investment decisions. The latter can often be difficult as investors can easily get swept up in the excitement of a purchase, or make choices based on their personal preferences, which can reduce the quality of an investment. This is why many investors choose to work with an investment property research house. Engaging these experts can help investors understand the hard facts while eliminating emotion from the equation.

Which macro and micro factors do the experts consider?

Some of the macro factors that are considered by an investment property research house include how the economy is performing, where jobs are growing, where the population is growing and the demographics of growth areas. They will also consider where public and private infrastructure is being invested in, where construction is taking place, which areas are desirable and where there is a lack of supply but high demand.

These macro factors provide insights into hotspots and growth areas, ultimately uncovering the best suburbs in which to invest.

Some of the micro factors that are considered include the quality and design of a property, a property’s proximity to transport, a property’s walkability score and potential rental return.

All of these factors can help investors to locate the best places in which to invest and narrow down the specific properties within these areas to achieve the best return on investment.

Using extensive research methods and comprehensive data, investment property research houses provide unlock information for investors to ensure they make the right property decisions.

Contact me today on to discuss your potential investing opportunities.

What you need to know about rental yields when investing in property

When investing in a property, there are various measures which need to be taken into account to assess the quality of your investment. Chances are you’ve come across one of the more important terms – “rental yield”. As an investor it is important to understand rental yield and how it can impact the success of your investment and your cash flow.

What is a rental yield and how is it calculated?

A rental yield is the rate or percentage of rental return compared to the value and costs of the investment property.

There are two ways you can calculate rental yield – either as a gross percentage before expenses are deducted (Gross rental yield), or a net percentage which will take into account expenses, such as purchasing and transaction costs, fees and expenses, and vacancy costs. (Net rental yield).

Because a gross rental yield does not take into account costs and expenses, it is a less accurate measure. However a net rental yield isn’t always 100% accurate either as it is based on assumptions about external factors out of the owner’s control (such as vacancy periods and mortgage interest rates).

It is important to engage with a professional when calculating rental yield to get it right.

What can rental yields tell us about the market?

Rental yields are a great indicator of the market. The below chart illustrates Australian capital city rental yields today versus 15 years ago. We can see that Sydney and Melbourne – the country’s biggest rental markets – have continued to provide lower yields than other cities.

At the moment we are experiencing record low yields in Sydney due to rising property values, which many debate is an indication that Sydney house prices are nearing their peak – something which will come as a relief to many with the median house price now reaching in excess of $1 million.

Source: Dividend, 2016, http://dividend.net.au/property-rental-yield-calculator/

Why high yields should be approached with caution

You know the saying “if it seems too good to be true, it probably is”? The same applies with rental yields. Property is easily affected by both economic and noneconomic factors and high rental yields alone may not be an indicator of a good investment.

Analysing rental yield is important, but an investor should never hang their hat on this one significant indicator – it’s important to look at the entire picture before making any purchasing decisions. Rental yield should be added to the mix of other factors including property location, potential capital growth, as well as new and existing infrastructure in the area to determine the overall potential return of a property.

To discuss your property investment options, contact me on 0448 258 716.

Energy efficient assets are becoming buzzwords these days, and with the price of energy going up why wouldn’t you look at ways to save on it. More and more finance companies are now offering commercial finance for energy assets, solar panels (including installations costs) and energy efficient lighting, power correction units, battery storage and gas engines to name a few.

They can be financed on a chattel mortgage or a rental product and each product has their own benefits :-

Happy to discuss either option with you. Some installation under $35,000 will not require financials but this is not always the case. A quick call to us and we will be able to let you know.

Blog written by Tina Clark, an Equipment Finance Specialist at Laurentide Financial Services.

This information is for general use only and the recipient should seek their own advice in relation to any product or service referred to in this document.

If you’re looking for a creative way to overcome being locked out of the property market by rising prices, buying a house with a group of friends may be a solution. It can also be a minefield though, so here’s how to avoid a blast.

While the excitement of banding together in such a life-changing moment can put everyone on a bit of a high, you need to plan for situations in which things might go wrong.

It’s essential you have all been completely upfront from the start about what you want to achieve by purchasing property together, as well as your personal expectations about timelines for purchasing the property, paying it off and selling it. And all of this must be documented in a co-ownership agreement.

We can refer you to a solicitor of conveyancer with experience in working on co-ownership agreements, who can advise and create yours and make sure it is suitable, providing the necessary legal protection for everyone involved.

The big question will be what structure your ownership takes. There are two options: joint tenants and tenants in common. Joint tenancy is the most common ownership structure in Australia, as it is how most family homes would be owned.

However, because friends are less likely to share assets and long-term debts than a couple, and less likely to will their assets to each other, the ‘tenants in common’ model would usually be more suitable for this situation.

Under this model, each person owns a specified share of the property’s value. These shares may be equal, but needn’t be. So, if you are willing to contribute $500,000 to the price of a property, but your two friends are not quite at that stage and only comfortable contributing $250,000 each, you could own a 50% stake while they each own a 25% stake. Keep in mind, each stake is in the property’s value, not control of the property. Legally, under this model, each owner has the right to full access to the entire property.

The co-ownership agreement created in collaboration with your conveyancer should set out how the costs of maintenance and insurances are divided, as well as how sale proceeds will be divided.

It should also cover plans for depreciation and capital gains tax, selling a share of the property to another co-owner, choosing tenants or determining rent, selling a share of the property to a third party (otherwise there are no restrictions on this under the tenants in common model), and selling the property altogether.

If all purchasers are planning to occupy the property, the agreement should make plans for if one wants to move out but continue their ownership. Under the tenants in common co-ownership structure, the other owners occupying the property would not be obligated to pay rent to the one who has moved out, as long as they are not restricting that co-owner’s access to the property.

As is the case with any property purchase with any structure, each co-owner should have an up-to-date will that specifies who inherits their stake in the property.

There are many more considerations when buying property jointly, so chat with us today to learn more!

Some of the most important decisions a business owner will make are about their premises: whether to rent or buy, where to base the business and even the style of the property are important to get right. For those with an SMSF, there is one more option to consider: landing business premises and an investment property at the same time.

At Sattout Accounting Services we work closely with Financial Planner Domenic De Filippi of Trend Financial* to give you the advice you need in making decisions about your superannuation.

Figuring out whether buying your commercial premises through your self-managed super fund (SMSF) is an option that’s suitable for you is imperative to the success of your investment.

There can be many gains through purchasing commercial property through your SMSF, including creating a certain level of freedom by smart use of resources.

“It frees up capital for the business owner. They are unlocking super to do more for them,” explains Domenic.

Further to this, the property is protected against insolvency. Depending on the type of business, this can be particularly appealing.

“There’s a tremendous level of protection of assets within super, so it ticks the asset protection box for a lot of SMEs that may be subject to litigation due to the nature of what they do,” Domenic says.

Then there are the tax benefits.

“While it is in accumulation phase, income tax is only $0.15 in the dollar. In retirement, as the law stands, its zero,” Domenic says. This means that the money accumulated in an SMSF through the investment does not get taxed.

On the flip side of the shiny self-management coin, we offer a word of warning regarding obligation. “There is an absolute element of responsibility on compliance matters. You are the trustee of an SMSF and you need to understand what those responsibilities entail,” Domenic warns.

You must pay commercial rates for rent through a prearranged lease agreement and, although having a protected asset is great for some businesses, it also means that equity is locked within the fund. You can’t take earnings elsewhere.

Having a SMSF means you can’t give all of this work to someone else to do for you, but you can seek advice. Ask us how it works today.

*Domenic De Filippi, Financial Planner Authorised Representative of Trend Financial Pty Ltd Australian Financial Services Licence No. 468923

When purchasing an investment property, there are a number of factors that could increase or reduce your potential return on investment. In this case it's not just location, location, location.

When considering a property for investment purposes, the most important question to ask is 'will be attractive to tenants?'. But how do you know what will appeal to someone you've never met? Settling on a handful of locations is a good start. Young families and couples are often the ones that drive capital growth and so a location that is within a reasonable distance to schools, entertainment, transport, and an employment hub is one to look out for. Other ideal factors are a low vacancy rate and relatively high rental yield.

Although location plays a major role, it's by no means the only defining factor. There is a mistruth a lot of people subscribe to when selling investment properties, which is to disregard the quality because you don’t have to live in it. It is important to buy a homeowner quality property to protect your investment in the long term and make it a desirable property for your tenants. When buying an investment property, you have to have an exit strategy, which will generally involve selling to homeowners as well as investors.

To get the most value, you need to think about the demographic of renters who are likely to be living in the area. You have to match the property with the population in the area. For example, if you put a good quality, decent sized, one bedroom apartment in the inner city, it would be a great investment, however if you put it 30km out, it may not garner as much interest.

When investing in any kind of property, be wary of any danger signs. One of the biggest mistakes Australians make is not knowing what their cash flow is. It is vital to know how much your chosen property is going to cost after tax, every week after you settle. There’s no point in buying a top quality property if it’s going to send you broke.

When looking to purchase an investment property, ensure the expert you are dealing with is actually an expert and your best interests in mind. Only buying for cash flow is flawed, only buying for capital growth is flawed too. You have to buy property that’s going to work for you.

When implemented well, buying off the plan – be it a studio in an inner city apartment tower or a house and land package in suburbia can be a powerful way to quickly build your property portfolio.

One of the big advantages is the small amount of upfront capital needed to lock in your piece of real estate. Whether it’s buying your first home, starting that portfolio you have always wanted or expanding your current holdings, buying new can be very advantageous. Most developers only require a 5 or 10% deposit, with some developments taking about two years until completion. This means investors can get in with little capital and spend the months ahead saving and for rising markets, this gets you ahead of the growth curve with little money down.

Finance Expert and Economist, Craig Cobb argues that “What most Australians don’t know is that buying new property over pre-existing property opens up some significant benefits. Buying new means low maintenance, higher yields, tax benefits and builder’s warranties are in place. A major added bonus is that you tend to get better tenants that take pride in the new residence and will look after it.”

As a strategy, purchasing new stock can work well for most investors and deliver excellent benefits – providing you pick the right project, in a good location. So who usually buys new property?

High-Income Earners

For high-income earners who are time poor, purchasing new property can offer excellent upside. On the time-front, new investments require minimal maintenance consequently providing a ‘set and forget’ option for a busy professional.

From a financial perspective, the tax breaks available via depreciation provide investors on high-incomes great savings by reducing their overall taxable incomes. Tax Depreciation Specialist, Mike Mortlock of MCG Quantity Surveyors concludes that “If you’re buying an investment property now, buying new is the only way to ensure you’re getting the best possible depreciation.

“High-income earners benefit the most from depreciation as the deductions can sometimes drop them into a lower tax bracket, but essentially the higher your tax rate, the greater the real impact of depreciation deductions will be.”

Low-income earners

At the other end of the spectrum, low-income earners can also benefit greatly from this type of investment. Higher-yielding, a new property can generate increased cash flow and help cover mortgage repayments. With smaller amounts of cash required to be injected up front and the potential to reap Capital Gains benefits during the building stages, this strategy can help kick-start a low-income earner’s portfolio.

Additionally, building issues covered with Builders Warranty can be a saving grace in the early part of any low-income earners investor journey – limiting a buyer’s need to dip into their pockets if any building issues arise. This being somewhat overlooked by those buying older properties that require a lot more maintenance ongoing and affecting nett return.

SMSF investors

As an SMSF investment, the new stock offers a great ‘set and forget’ option. Generally lower ongoing maintenance and high yielding (requiring a little top up from SMSF funds to maintain cash flow), it can be ready to tenant immediately and start earning straight off the bat.

Craig Cobb agrees stating, “ASX has grown little over the past 3 years and global stock markets have been going up for 9 years and you have the perfect storm for a significant stock market fall in the 40/50% range.

“Buying new investment property in your super not only gives a strong yield and growth play but also reduces the risk by diversifying against potential stock fall scenarios of 40/50% and effectively putting your retirement behind by potentially a decade.”

Like anything involving superannuation, having the right advice to suit your needs, goals and specific scenario is key before embarking on any investment journey.

First home buyers

For first home buyers, new properties can be an attractive option, providing stamp duty concessions and savings via the first home owners grant.

Lawlab Director, Richie Muir suggests that “Housing affordability, especially for first home buyers, has been a hot topic over the past year and federal and state governments have introduced policies that aim to assist first home buyers. Some examples of this are the introduction of the first home super save scheme, and increases in first homeowners grants and first homeowner stamp duty concessions in some states.

First homeowner grants mostly apply to new homes, which can be purchased as a newly built home or as a house and land package, or built by the first home owner.”

A further benefit of purchasing new as a homebuyer can occur, if a purchaser gets in early, a developer may make changes to the layout, finishes and inclusions to secure the purchase. From a lifestyle standpoint, the new stock tends to be built in close proximity to amenities and transport hubs – a big plus for homeowner residents.

Overseas/FIRB buyers

New property stock offers Overseas/FIRB Buyers an entry point into the Australian market. Foreign investors are often able to secure FIRB pre-approval through Australian Developer’s, thus simplifying and de-risking the process. For many overseas investors, the Australian market offers a safer and more stable property investment option in comparison their home country market.

As with all investment strategies, it is critical to understand your personal situation and make purchasing decisions in accordance. While new property brings with it a range of benefits to many investors at various stages in their respective property journeys, be warned: not all projects are created equal and as with all things property, location is everything.

To discuss the merits of buying a brand new property versus an old property, please contact me on 0448 258 716.

As property prices continue to rise, purchasing in a centrally-located or sought-after area is out of reach for the average working millennial. Instead, many are opting to rent rather than buy as it means not having to compromise their inner city or beachside lifestyle. But for those who are still eager to enter the market, there is a way to get the best of both worlds.

‘Rentvesting’ is the term coined for when you purchase a property for investment purposes in an affordable location and continue to live and rent in the area of your choice. An example of how the market is evolving, it is a wealth creation strategy that is popular among the younger generation due to the flexibility it offers in comparison to being an owner-occupier.

“Millennials aren’t interested in purchasing a property in the outer suburbs and then having to commute into the CBD,” says an MFAA accredited finance broker. “Rentvesting allows your rental income to cover the mortgage expenses, so you can keep living the lifestyle you want without it costing you any money.”

For this strategy to work, you’ve got to be a good saver and there needs to be a focus on delayed gratification, advises the broker. “It’s all about living within your means. Don’t spend big at the start while you’re building it up. Step away from the mentality of negative gearing and tax minimisation and buy neutrally, or ideally, a positively geared property as this provides higher rental yields.”

A recent Mortgage Choice survey highlighted an increase in ‘rentvesting’ from 21 per cent of investors to 37 per cent over the past twelve months alone. But while this strategy may appear ideal to many, it’s not suited to everybody.

“It’s still a foreign way of thinking,” says the finance broker. “In the past, the great Australian dream was to buy a home on a quarter acre block and then do everything you can to pay that down as fast as possible in the hope of living debt-free. ‘Rentvesting’ is quite the opposite. It says we’re okay with good debt as long as we stick to our budget and keep using the money to invest further. You’ve got to have an open mind and be comfortable with debt.”

To ensure you have the means to make ‘rentvesting’ work for you, contact us for advice on good debt and other strategies that will allow you to maintain your current lifestyle.

Whether you’re after lower repayments or want to tap into the equity sitting in your home, refinancing can offer a world of benefits. Here are some things to be aware of so that you don’t find yourself hooked into a bad deal.

Don’t be fooled by the interest rate

Finding a lower interest rate doesn’t necessarily mean you’ve scored yourself a better deal. In fact, a product with more features may cost you a bit more in fees or interest, but could save you more in the long run. Including features such as an offset account will prove valuable as it will allow you to make larger repayments or put any extra cash against the loan. Products without this feature may charge a fee for early repayments.

Honeymoon rates are just that

Don’t be lured by offers with discounted introductory rates unless you’ve calculated the savings over the life of the loan. While a loan with a discounted interest rate seems a tempting offer, it’s only temporary. Once the introductory period is over, the interest will revert to a higher standard variable for the rest of the loan term. It may be more beneficial financially to negotiate a lower interest rate without an introductory discount.

Be aware of the fees

One of the main purposes of refinancing is to lighten the financial burden, however, that doesn’t mean that it’s not going to cost you. There are many fees involved, which may include discharge and application fees, a valuation fee, land registration fee, and mortgage insurance. You may also be subject to stamp duty depending on what state your property is located in. While these cannot be avoided, you have to ensure that the costs involved are not higher than the savings, to make the process worthwhile.

While there are traps to avoid, a little expertise can take the stress out of refinancing to save you thousands, fund that renovation, or simply find a loan that suits your life a little better. Get in touch and we will guide you through the process.

Sattouts named NSW Finalists in the Connective Awards for Customer Service.

Connective Excellence Awards are a way to reward and recognise outstanding performance and business achievements, while celebrating with peers in the industry. This year Sattouts is a finalist having been recognised for their outstanding Customer Service.

Best Customer Service, also known as the People’s Choice Award, is a great opportunity for companies to engage with their clients and showcase pride in our business. Sattouts would like to thank all of our customers who voted for the brokerage.

Winners of the Connective Excellence Awards for NSW will be announced at the Gala Awards Dinner at the 2017 Connective Conferences in late November.

Sattout Accounting Services was pleased to accept The 2017 Inner West Local Business Award Professional Service Category in a ceremony at Burwood RSL last night.

Sattout Accounting Services is a family run business that has been operating for 34 years. They service individuals and small to medium SME’s as both tax agents and finance brokers. Last night we were pleased to receive the Local Business Awards for Professional Services Category for the inner west region.

For the past 30 years the Local Business Awards have recognised and acknowledged outstanding local businesses and their people who go above and beyond in providing an exceptional customer service experience.

“We are very proud to be part of the inner west and we thank all our clients who have supported us for the past 34 years. As a family run business we are delighted to receive ongoing support from the community. We will continue to provide the services that you have come to expect and look forward to a long and enjoyable relationship. On behalf of our family and our team we want to say thank you.” Sam Sattout said after formally accepting the award.

Attending the Gala presentation evening were Sam’s wife Joan, Daughter Rebecca, Son Matthew and many of their valued team members. “We couldn’t be prouder of our parents and the team. Sattout Accounting Services is a great place to work and we love what we do. The smiles on the faces of our clients when we help them solve a problem is priceless. It is why we come to work each day. ” said Matthew Sattout, an accountant with the firm.

For more information about the awards visit the website.

Reducing the life of your loan isn’t difficult; there are many simple things you can do to cut years off your mortgage. Here are some tips that will help you be mortgage-free sooner than planned.

Small Extra Repayments

One of the most obvious ways to pay off your home loan quicker is to make extra repayments. Depositing lump sums, such as a tax return or work bonus, will always be beneficial, however it doesn’t always take large amounts or windfalls to make a substantial difference – planning for regular, small cash injections can have a great impact over the life of a loan.

For example, putting an extra $50 a fortnight on a $500,000 loan, can save you $32,000 of interest over the life of the loan which in turn will save you just over two years. That’s only $25 a week to make significant savings in the long run.

Switch Your Payment Intervals

If you find that you don’t have the discipline to make extra repayments, then simply switching your payment structure can also help save years off your mortgage, as well as simplifying your finances if you are paid fortnightly.

Because there are 12 months in a year but 13 four-week cycles, by switching your payment intervals from monthly to fortnightly, you are essentially paying off an extra month per year.

Make sure you have the right type of loan

Ensuring your loan allows extra repayments without penalty will let you to make the most of bonuses or funnel small extra payments to reduce the loan principle more quickly, saving on interest immediately, while an offset account will use your savings or living expenses to reduce your principle, while still allowing you to access these funds from a transaction account.

Although you may have to pay extra fees for the offset or redraw account, these may well be lower amounts than the interest saved.

Paying off your home loan faster isn’t difficult, however it does require financial discipline and expertise in ensuring the right loan features are in place. Contact Rebecca on 0448 258 716 to find out more.