6 Steps to Build that Home Loan Deposit when You’re Your Own Boss.

When you’re self-employed you know only too well, your income can vary each month and that makes saving up for a home pretty tough going. If you really want to show potential lenders you’re a good candidate for a home loan, having a history of steady, regular savings is a really great place to start. Here are six ways you can amp up your ability to put that money aside.

 

 

 

 

 

 

 

1. Doing well? Save more

When things are going well and you’re earning more money, don’t be tempted to splash out and reward yourself – keep your eye on the bigger, more important goal you care about. Stash a good piece of that extra cash. The real reward is the bigger number in your interest earning savings account.

2. Set yourself a target

Work out where you want to live first, then calculate how much you need to save for a deposit in that area – and don’t forget to add on those extra costs like stamp duty and legal fees. Remember that, depending on the product you‘re applying for, different lenders may charge different fees. It’s technically possible to get a loan with a five per cent deposit, but hitting the 20 percent target will help you avoid extra fees.

3. Watch your progress

It’s not just kids that respond to visual reminders – we all do. Make a colourful wall chart of your savings target, so it is always front of mind and you can see it grow when you add each new amount to the top.

4. Be smart with taxes

If you’re self-employed, there are tax deductions for business related expenses that can really add up to help you save. These might include things like home office expenses. To get good information about what you can claim, check out the ATO website or have a chat with a qualified tax professional or an accountant who can help.

5. Always put a little something away

A little goes a long way. When your income is different each month it can be tempting to only put money aside when you get large payments in. Everyone’s situation is unique but if you save a bit of what you earn every time you get paid, you’re always working towards your own home target and you’re getting there one step at a time, every time.

6. Protect your income

If you can’t work because of injury or illness, income protection insurance can help cover for lost income so you don’t use your deposit savings to live on. ASIC’s Money Smart website offers some good tips and information about income protection insurance that’s worth checking out.  If you’d like more information talk to us today about how we may be able to put you in touch with a lender that can help if the major banks say ‘no’ to your loan application.  0419 664 186.

Disclaimer: Original content source: Pepper Money. It is designed for publication through Accredited Brokers, to provide you with factual information only, and it is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. If you need financial or tax advice you should consult a licensed financial or tax adviser. The information in the article is believed to be reliable at the time of distribution, but neither Pepper nor its accredited brokers warrant its completeness or accuracy. For information about whether a non-bank loan may be suitable for you, call Don on 0149 664 186.

 

 

 

 

 

 

 

 

 

 

 

Shocking Statistics

According to Peter Nichol on LinkedIn, “Remember 62% of all personal bankruptcies in the United States are due to healthcare bills and 72% of these people HAD healthcare insurance before bankruptcy.”  He was referring to the ever-narrowing margins available to Hospitals to fund new technology, like Medical Imaging Equipment.  The gist of it was a question about the wisdom of GE to make Medical Technology one of the three pillars of its new restructure.  I wonder if he knows how much GE makes on Medical Imaging Equipment sales in the U.S.  It’s huge – about double what it makes elsewhere in the world.  That is, unless things have drastically changed since I left in ’06.  I doubt it.

Over 60? Asset Rich, but Cash Poor?

There is a way to unlock the equity in your real estate:  a Reverse Mortgage.  I’m now an accredited broker, and the first loan I wrote was for my wife and me.  It’s made a significant improvement in our cash flow (>$4000 / month), we’ve made a lot of overdue repairs and updates to our home, and we still have enough for nice, long holiday in Fiji.  It’s given us a real lift in terms of Peace of Mind.  Why not give me a call?  A brief discussion will reveal if a Reverse Mortgage is worthy of serious consideration.  Ring Don Greenamyer on 0419 664 186.

Don’t be among the 33%

According to AustralianBroker, 33% of Australians are failing to put in the effort and seek out better home loan deals despite slow wage growth and piling levels of household debt.  Apathy and the hassle of switching lenders seem to be the main reasons, but it’s very easy to ring your broker and let him or her save you the hassle and potentially save you a lot of money.

Revolutionary Technologies: the Printing Press, the Internet, and now Blockchain

For those interested in learning about Blockchain, I strongly recommend a very well-written book by Tim Lea, Down the Rabbit Hole, Discover the Power of the BLOCKCHAIN.  Blockchain is not exactly new and has had some bad press, because it’s the underlying technology of Bitcoin, which recently rose in value to more than an ounce of gold.  The most powerful quote on the subject is from Goldman Sachs in December 2015:  “…the Blockchain, can change…well everything”.