Lloyd Hughes - Finance Specialist

31/12/2022

As 2022 comes to and end we can all look forward to a better 2023.

30/03/2021

THREE WAYS TO SURVIVE THE END OF JOBKEEPER
https://corporatemomentum.com.au/three-ways-to-survive-the-end-of-jobkeeper/

24/03/2021

THREE WAYS TO SURVIVE THE END OF JOBKEEPER

The COVID-19 crisis has caused an extraordinary amount of strain for the majority of South-East Queensland businesses. If JobKeeper is the only thing helping your business stay afloat, you’ll be anxiously awaiting the Government’s announcement on 23 July, and dreading the end of September. But i...

23/03/2021

A financial health check is a bit like going to the dentist – we never do it often enough. But I can guarantee this one will be far more painless than any stint in the dentist's chair. If you could quickly spot the gaps in your finances and put a few easy plans in place straight away that could save you thousands of dollars in a few years (or maybe even next week) would that sound like an exercise worth the time? Call me on 0400 700 214 and let's examine your finances.

With the Government's Job Keeper support now coming to an end, it may just be an opportune time to consider a health check and ensure you can still keep your financial goals without drowning.

Without significant new government financial support, many businesses that continue to be adversely impacted by COVID-19, particularly in the tourism, travel, wholesale and retail industries will come under renewed liquidity and employment pressure from April this year.

We anticipate that asset-light small to medium-sized businesses, with fewer funding options available, will be most affected. Solutions may be to permanently reduce employment, seek further concessions from suppliers, landlords and lenders, or take more drastic measures such as closure or insolvency. Such actions will have a knock-on effect, impacting employment, liquidity, and working capital through industry value chains and the broader economy. Businesses that are experiencing cash flow issues at this point may need to look at the business more broadly. It’s possible that underlying business issues were compounded by the COVID-19 crisis, magnifying and accelerating the impact of these issues for those businesses. If small businesses are likely to struggle to meet their overheads without JobKeeper, they should speak to me ASAP to ensure a positive future for your business.

22/03/2021

A financial health check is a bit like going to the dentist – we never do it often enough. But I can guarantee this one will be far more painless than any stint in the dentist's chair. If you could quickly spot the gaps in your finances and put a few easy plans in place straight away that could save you thousands of dollars in a few years (or maybe even next week) would that sound like an exercise worth the time? Call me on 0400 700 214 and let's examine your finances.

17/12/2020

Merry Christmas to you all.

07/10/2020

Predictions are that Australia could be a cashless society within 2 years, following the Sweden example. With COVID, we have accepted, even embraced, the use of cards in preference to cash for payment. The Reserve Bank of Australia has already mooted that cash will become a ‘niche’ payment with limits of $10,000 for any cash payment being considered by the Government. There are many questions about surveillance and who may have access to these data trails but it will cut out some of the black market currency yet add challenges to the vulnerable - elderly, disabled and other marginalised persons without computer access.

With ongoing regulatory changes impacting how lenders have assessed borrowers over the last few years, there’s been another issue bubbling away beneath the surface, which many people haven’t factored in: the impact on borrowers’ privacy.

Paying by card has become the norm. Online shopping and hand-held apps that can get us places and serve us meals at the tap of a screen have taken us to the point where few of us spend with cash - how much cash would you have in your wallet?

However, such transparent account activity in a tightened lending climate begs the question: is the make-up of your monthly bank statement impacting your chances of being approved for a home loan? Your spending habits are there on your statement to reveal everything, your spending behaviour is verified in an instant. Whilst I'm sure the banks are not fussed if you are wine drinker or rather a boutique beer, or if you have KFC for dinner, quite frankly they actually don't care. What they care about is how much money is going into your account and how much is going out. Your management of credit cards depends on your goals and whether you are already comfortable enough with the serviceability of any borrowings.

Debt is still a good thing if you can service it properly as it will lead to better things in life.

24/03/2020

Do you need a financial check-up?
Many of us are working from home and spending more of our free time at home too, take advantage of this time to sit down and examine your finances. What are your goals? Are you on track to reach them? What do these economic changes mean for you?
Some people will be looking into financial uncertainty. I am available to assist you in managing this. I want to ensure you understand your redraw facilities, offset accounts, your rights in regard to mortgage 'repayment holidays', applying for financial hardship with your bank, and how you might take advantage of the RBA rate cut. Reach out and book a video or phone call with me this week.

05/11/2019

The Reserve Bank of Australia (RBA) has left the official cash rate at the record low of 0.75% for November. Good times never last with these low, low rates.

02/10/2019

A Beginner’s Guide to Deposit Bonds

Struggling to get access to a 10% cash deposit for your property purchase? You’re not alone.

Whether you’re a first home buyer, downsizing or investing, getting the deposit together is one of the major hurdles facing home buyers today.

But more and more Australians are realising there’s a smart alternative to a cash deposit: a deposit bond.

In this article, we’ll cover what you need to know about deposit bonds, so you can decide whether it’s the right solution for you.
What is a deposit bond?
Also known a deposit guarantees, a deposit bond is used in place of the cash deposit required between signing the contract of sale and settlement.
Think of a deposit bond as an IOU for the deposit amount you need to secure your property.
Just like a cash deposit, a deposit bond guarantees your commitment to an unconditional contract of sale. Then, at settlement, you simply pay the full purchase price, including the deposit amount and any other costs, like stamp duty.
The only money that is exchanging hands is the deposit bond fee, which you pay to the deposit bond provider upfront.
What it is not?
There can be confusion that a deposit bond can be used as a deposit to help secure finance from your bank or lender. That’s not the case.
In fact, a deposit bond can only be used as the deposit (up to 10%) to guarantee your commitment to the purchase of real estate or land to the vendor.
Why use a deposit bond?
Deposit bonds are a smart option if you want to purchase a property but don’t have ready access to a cash deposit - but you will by the time of settlement. You might be a first home buyer who simply doesn’t have enough cash sitting in the bank for the deposit. Or you might be downsizing to a smaller property, but because you haven’t yet sold your current home, your deposit is still tied up.
Here are 3 facts you need to know about deposit bonds:
Fact 1: A deposit bond guarantees up to 10% of the purchase price
A deposit bond provider “guarantees” you for the deposit bond amount right up until you get the funds at settlement. In other words, it gives comfort to the vendor that you are committed to the sale. The most important thing is that you always check with the real estate agent, developer or vendor to make sure they will accept a deposit bond instead of a cash deposit.
Fact 2: You pay no interest

This is where a deposit bond becomes really attractive. There’s no interest to pay on deposit bonds – you only pay the one-off fee just before your deposit bond is released. In most cases, this means a deposit bond is more financially advantageous than taking out a personal loan or redrawing to pay your home deposit.

Fact 3: Deposit bonds are very versatile
Deposit bonds can be used for lots of situations:
• To buy a home, vacant land, commercial property and off the plan.
• For settlements of less than six months or more than six months.
• For private treaty sales and auctions.
• Whether or not you currently hold finance approval from a bank or lender. If you don’t, you may still be eligible by assessing your income, assets and liabilities to verify that you will have the funds to settle on your purchase.
To find out more about deposit bonds and work out whether they’re the right option for you, talk to me, Lloyd Hughes on 0400 700 214

09/09/2019

ADVANTAGES OF PRE-APPROVAL FINANCE FOR A HOME PURCHASE
• Securing a formal pre-approval gives you great negotiation power at offer stage; as it demonstrates to the vendor that you are in a genuine financial position to purchase and have the strong motivation to do so. An offer from a buyer with pre-approved finance will generally carry more weight and influence than an offer without this.
• It also assists you to research properties within the appropriate price range – saving you time and possible disappointment if you found your dream home, only to learn it's out of your reach, financially.
• Furthermore, the closing period of your loan is shorter as you don't have to wait for the bank to go through the entire loan application process, as you're more likely to obtain finance quickly and the purchase process will be smoother.
Don't forget, the lender is still under no obligation to loan you money. The final guarantee that you'll receive finance for a property will always be subject to the proposed property you wish to buy. If the valuation doesn't stack up, and you are stretching beyond your ability to pay, then despite having a pre-approval, you may or may not get the final approval. A bank will also decline a final approval if they find a discrepancy that has been completely missed or they have reason to suspect something like fraud.
Once your offer has been accepted by sellers, you may have a set time period to get your finances in order - this could be just 14 days with a contract having 'subject to finance' clause included. Having pre-approval will enable you to have a shorter period to make your contract unconditional. If you haven't already done so, I can assist you through this process before you find the perfect home