HAPPY EOFY!!!

Welcome to the end of financial year edition my blog for Naked Edge Real Estate. In line with the financial year coming to a close, I thought it would be a great time to reflect on your financial position and where you see yourself in the next 12 months. Below are some ideas/tips on how to best utilise your tax refund and some tips on getting your finances fit for the new year!

What do you do when you receive your tax refund?

Most people receive their refund and say “WOO-HOO! Spend it on something quickly like a holiday, or a new tv!” but this isn’t really working in your best interests. Splurging your tax return money feels great short term, but when you look at your credit card/loan balances a few weeks later you may have second thoughts on that impulse buy…

What should you do when you receive your tax refund?

If you have any unsecured, high interest debt (i.e. credit cards, personal loans, store cards etc) I would be putting the tax refund on these debts first. Pay these down as quickly as possible, as these types of debts generally cost you A LOT of money. Once these debts are paid off, it will improve your cash flow and will put you in a good position to save some money for the well-earned holiday, or even for a house! If you are a first home buyer – banks love to see you have saved funds for at least a 3 month period, so your tax return funds are a good jump start as a deposit for your first home!

If you are in pretty good control of your finances and don’t have any credit card or personal loan debt, but have a mortgage… put it right into your offset account or into the mortgage itself to save you some money on interest! The money is always better in your pocket than the banks!

If you are an investor and have multiple properties – chances are your tax refund is for a relatively good amount! Ideally, you would put the refund into your home loan, and pay your owner occupied debt off as quickly as possible… this will then start to free up equity and put you in a position to assist in purchasing your next investment – and grow your portfolio nicely!

Finance Check Up

EOFY is a great time to give your finance a check-up. Just like we all join the gym in January, it is important to look after the health of your finances at the new year – mortgage or no mortgage. Now days, there is no excuse to have your everyday transaction account in an account that attracts monthly fees! Time to shop around and look for accounts that are fee free and working for you!

Mortgages

When was the last time you had your mortgage reviewed? Banks are SCREAMING for your business, it is such a competitive market with banks offering interest rates ‘under the table’ to beat their competitors along with rebates to refinance to them… so it is a great time to check to see if you can sharpen your home loan product! Not everything is just about interest rates. It is important to check to make sure the mortgage you have has the features you need and at a low cost to you (i.e. redraw, mortgage offset account, annual fee credit card waiver etc).

I can help with reviewing not only your mortgage/s, but looking at your overall banking structure and ensure your accounts are meeting your day to day needs at no cost to you.

Investors

If you are an investor, it is good to have a chat to your accountant and your broker to make sure the structure of your investments is still current to your needs and you are maximising your position. I can team up with your accountant to make sure you are maximising your investments and everything is running smoothly for you.

 

Here’s to a happy and prosperous EOFY and please feel free to contact me on 0401 326 641 or audrey@ashblue.com.au if you have any questions or if you would like an obligation free chat!