Are you an experienced accountant that regularly works with property investors? We need to hear from you if you are comfortable discussing and assisting clients with some of the following:
Taxation returns for investment property holders
Debt minimisation strategies
Asset protection via trusts and other vehicles
Tax planning
Assisting with record keeping
Craft beer

Element Finance are keen to establish a reciprocal referral relationship with a reliable and knowledgeable accountant. If you want to hear from a lot more investors and would also like to have confidence your clients’ finance is always done right, get in touch now, we need to talk.

Happy New Year! We hope that you and your family enjoyed a very relaxing holiday break and managed to get into the great outdoors to enjoy this lovely summer weather.

Are you ready for another fantastic year in our property markets? 2015 was a fast and furious year that favoured property owners and sellers in almost every capital city. However, many analysts are predicting that our property markets will improve for buyers this year, with conditions starting to look much more favourable for first home buyers and owner occupiers.

This is largely due to a reduction in property investment activity in response to the tightening of controls on investment lending by the Australian Prudential and Regulatory Authority (APRA) in June last year. Activity from foreign property investors also slowed in the last quarter of 2015.

Both of these factors have contributed to reduced competition for properties. This has caused a slow-down in rapid rises in home values around the country, but particularly in Melbourne and Sydney where markets were running hot all year.

Sydney home values increased by 11.47% during 2015, but they were down by 2.37% for the final quarter. Melbourne values were up by almost 11% for the year, but fell by 1.70% for the final quarter.

Other capital cities saw more modest movements in home values for the year. Brisbane/Gold Coast saw a 4.57% rise in home values and Canberra saw home values increase by 4.09% for the year. In Perth, home values decreased in 2015 by 3.73% and Darwin also saw home values fall by 3.63%. Hobart also showed a marginal decrease in home values for the year of 0.72% and Adelaide showed an overall decrease of 0.13%.

During December, there was still a great deal of activity going on in most states. Auction numbers were surprisingly high for that time of year, however clearance rates were much lower and many more properties sold prior to auction than was usual for the year.

With many people only just returning from holidays, we can expect property market activity to be continue to be quiet for the remainder of January. However, with interest rates remaining at historical lows, and further rate cuts looking likely in 2016, we can expect general property market activity to be busy again this year, with large auction numbers already on the horizon for February and March.

Whether you’re a first home buyer, looking to refinance or are planning to invest in property this year, we’re here to help you formulate your plans and access the right financing for your needs. We look forward to assisting you to achieve your goals in 2016, so please don’t hesitate to give us a call to get started today.

The temperature is UP here in Fremantle and Perth so its time to hit the water – in style! This month,Element Finance are giving you AND a friend the chance to get into the Indian Ocean in the most unique way we can find – on a Jet X-treme jet board! For your chance to dive like a dolphin into the deep blue, enter our competition with these 2 easy steps:

1. LIKE the Element Finance Facebook page
2. Visit the Element Finance page and comment on this image with the name of the person you want to fly across the water with.
But hurry, competition closes on 18 January. Winner announced 19 January. For full T&Cs, please email mike@elementfinance.com.au

A home loan isn’t just a debt, it’s a great financial tool that you can use to build wealth and facilitate your lifestyle. That’s why few people keep their original home loan for the life of the loan – it pays to keep it up to date to meet your needs as circumstances change.

Refinancing your home loan means replacing it with one that better suits your current needs – and it’s something you may consider for a variety of different reasons. Here are the top four reasons why you might consider refinancing your home loan.

1. To save money on your home loan repayments

The top reason why people talk to us about the possibility of refinancing their home loan is because they may now be eligible for a better interest rate. Cutting back on the interest you pay could reduce your repayment amount and save you a considerable amount of money over time.

When you first apply for your home loan, your financial circumstances are one of the factors that influence the home loan interest rate available to you. As your personal situation improves over time, you may be able to refinance to get a better interest rate.

Additionally, you can often get a better interest rate by switching lenders. For example, the big four banks recently made a move to raise interest rates outside of RBA movements. However, not all lenders raised rates at the same time, with many of the smaller lenders keeping their rates between 0.20 and 1 percent lower than the bigger lenders.

If your lender raised your rates recently, now may be a good time to ask us to shop around for a better deal that could save you money.

2. To access your equity

Property investment is currently one of the most popular ways of building wealth for your future. Whilst saving the deposit to purchase a second property may be difficult for many, rapid rises in property values in recent years have provided an opportunity to refinance in order to access some of the equity in their homes to use as a deposit instead.

The equity in your home is calculated by subtracting the amount you owe from the current value of your home. In order to refinance to access your equity, you will need to have your home valued to determine its current value.

Accessing your equity will increase the amount you owe on your original property and increase your mortgage payments. However, if you use the equity to make a property investment, you will have the opportunity to capitalise on home loan value increases on two properties over time and this has the potential to help you increase your wealth in the long run.

Other uses for a lump sum in cash are literally endless – you could use your equity to buy your family a boat, a caravan, the overseas holiday you’ve always wanted or even use it to invest in a business or stocks and shares. However, we encourage you to act responsibly and only access your equity for lifestyle reasons if you can genuinely afford it. That means talking to us to help you discover your real financial position and if accessing your equity is a good idea for you.

3. To renovate or extend your home

Renovating or extending your current home to meet the needs of your growing family or changing lifestyle is often a better option than purchasing an entirely new home. By renovating or extending, you will be able to create the home that exactly meets your needs and if you’re careful about the improvements you make, perhaps even increase its value at the same time. Even though you will need to access your equity, you may be able to improve the value of your home to offset this cost.

Maintaining the value of your largest asset is important. So even if you don’t want to extend your home, keeping it up to date and in good repair is something you should consider periodically. If your home could do with an update, don’t hesitate to talk with us about refinancing to renovate.

4. To consolidate debts

Your home loan interest rate is probably the lowest form of interest you will need to pay on any loan in Australia. Credit card interest rates can be as much as four times higher than your home loan interest rate and this can make credit card debts difficult to pay off. Other expensive debts like car loans or personal loans can also prove to be a drain on your finances.

If the value of your home has increased over the last couple of years, it may be worth considering accessing some of the equity in your home to pay off your more expensive debts. This could dramatically reduce the amount of interest you have to pay on your overall debts each month, offering you some financial relief and helping you to enjoy a more comfortable lifestyle.

It’s a far better idea to be in a position to save money each month rather than waste it on expensive credit card interest repayments. By refinancing to consolidate your debts, you could possibly find yourself in a position to save money to make other investments or even pay off your home loan sooner. Ask us to help you crunch the numbers to see if using your home loan to consolidate your debts will be a good idea for you.

Ask us if refinancing is the right move

If you have plans or goals for your future then remember, your home loan can be used as a financial tool to help you reach them. We’re here to help you make the most out of your home loan, so please don’t hesitate to give us a call for a chat about what you want to achieve and how refinancing your home loan could help to get you where you want to be. We’re always happy to spend the time with you to help you make the right decisions to reach your financial goals, so please call us today.

Home loans are changing with the times. You can now get home loans in a variety of different forms, all with different facilities and features. Deciding which home loan suits your needs can be quite daunting and that’s where sound advice from your professional credit adviser can be invaluable. We’re here to help you sort through all the different home loan options and help you choose the one that’s right for you. But where do you start? What features do you need to consider?

Choosing the right home loan

Before you start shopping for a home loan, why not sit down and discuss your personal circumstances, financial situation and goals with us? Once we identify what’s important to you, it will be easier to decide what features and facilities you might need from your home loan

While the first question some clients ask us is ‘what is the best interest rate I can get?’, choosing your home loan isn’t just a matter of picking the one that has the lowest interest rate. The home loan with the lowest interest rate isn’t always the least expensive option when you take into consideration fees, charges and some of the advantages you might get from a loan with features that better suit your needs. These may include:

• The ability to make additional repayments
• Interest only options
• Lump sum repayments
• Offset account
• Transaction account/credit card facilities
• Redraw option
• Split loan option.

Two common facilities that could help you save money on your home loan include transaction or savings offset accounts and redraw facilities. We get quite a few questions about these features, so let’s have a look at these in a bit more detail below.

Transaction or savings offset accounts

One of the newer and increasingly popular financial products on the home loan market is a transaction or savings offset account and most lenders have one on offer. Whilst they may not come with the lowest interest rate on the market compared to your basic home loan product, they may help you to save money on how much interest you have to pay and may also help you to save on bank fees you would usually pay for your transaction account and credit card.

A transaction or savings offset account can be used like an everyday bank account, but it is linked to your home loan so that the money you have in it reduces the amount of interest you have to pay on your home loan. In other words, the money in your offset account counts against the amount you owe on your home loan – so the more money you have in there, the less interest you have to pay on your home loan!

You use the account like you would your ordinary transaction account – your salary is paid into the account and your spending comes out of it. With good budgeting, you can really make it work to reduce your interest obligation and help you pay off your home loan sooner. This kind of account can also help you save money on overall banking fees as they usually offer fee free use of ATMs, credit cards and more.

Redraw facilities

A home loan with redraw facilities is a popular choice for many home buyers. It allows you to make extra repayments and gives you the option of withdrawing those extra repayments at a later date if you need the funds.

Usually redraw facilities are only available with variable interest rate loans, as other types of home loans like fixed interest rate home loans or basic home loans do not give you the option of making extra repayments.

Every extra repayment you make to your home loan goes toward reducing your term and therefore the amount of interest you will need to repay over the entire life of the loan. If you make extra repayments diligently every month or even every fortnight, you could save years on your mortgage term and thousands of dollars in interest over time. Even an extra $50 a fortnight could have a dramatic affect!

However, redraw facilities give you a safety net in the event that you should ever need to access the funds quickly. A home loan with redraw facilities can give you almost instant access to your money when you need it – say your fridge goes on the blink or your car needs some major repairs, you’ll know you can get at your money right away.

What type of home loan is right for me?

There’s a home loan type available for just about any property purchase. If you want a home loan with a low interest rate and no redraw or offset facilities, credit card or transaction account then a basic variable rate home loan may be the right choice for you.

However, if you need to make sure that your home loan repayments will stay the same every month for the foreseeable future then a fixed rate home loan may be your best option.

Variable rate home loans usually come with the best range of features and although your interest rate may go up or down, you can make savings on your home loan by using the features wisely. It’s also possible in many cases to arrange a split home loan, which allows you to hedge your bets on interest rate rises by having part of the loan at a fixed interest rate and part on a variable interest rate.

As mentioned earlier, the first step in choosing a home loan is to talk with us about your personal circumstances, financial situation and goals. Getting to know you and how you will use your home loan will help us to guide you through the maze of choices when it comes to selecting your home loan. If you’d like to find out more, or just chat about your plans, please do not hesitate to give us a call. We’re here to help you get started.