A cash bond is a type of investment used by some investors when they approach their debt serviceability limit with banks, and is a way of increasing serviceability by “ticking the boxes” of a lenders debt serviceability criteria so that you can borrow more money to invest. In order to do this you need to have at least some equity available to use, either through borrowings from a line ... »
As you may have noticed, we haven’t written a lot about bonds! It’s not that we don’t like bonds, we do – bonds are good for diversification and as a counter-cyclical asset to shares (ie. bonds tend to do well when shares don’t), and to reduce risk and improve risk-adjusted returns. That being said, we feel that most people should be able to adequately meet most of their lo... »
When getting a home loan for a principal place of residence (PPOR), you will usually have the option of putting repayments of the principal loan amount (and any extra cash savings on top of this) either into a redraw account attached to the home loan or into a 100% home loan offset account. In both cases, the cash that goes into either the redraw account or offset account reduces the effective int... »
When immersed in your job, business and daily routines it’s easy to lose sight of the purpose of wealth building. Below is the classic story of a Mexican fisherman and an American investment banker. We hope this simple story helps give you some clarity in the pursuit of financial freedom. And a worthwhile reminder that you don’t need to be that wealthy to live a happy, meaningful and f... »
We haven’t used buyers agents in the past as we prefer to buy property directly on our own, though would consider one if buying interstate. For those who are very time poor, then it may be worth considering too if the alternative is not being able to buy any property at all due to this lack of time. When deciding on using a buyers agent you need to make sure you choose one that charges a tra... »
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