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2013 – Your New Year Renovations

You may know what your New Year Resolutions are for 2013 but what about your New Year Renovations?

Now that 2013 has really kicked in, whether you’re planning for it to be full of hard work and consolidation, family time and fun or more study or travel, make sure you renovate your finances including those wrapped up in your properties.

Add the following “renovations” to your resolutions and you’ll go a long way to securing a financially strong future for you and your family.

Do you know what your home and investment properties are really worth?  Not knowing your true wealth makes it more difficult to financially move forward so at Empire, we advise our clients to get all their properties re-valued once a year so that they know exactly where they stand.

While many suburbs did well in growth in 2012, if you know for sure that your property has gone back in value, don’t make that call and keep paying the mortgage/s you have until the market turns.

However, if recent sales and the media are showing that your area/s have done well, you may be on your way to buying your next investment property!

When organising valuations with your bank, check with them that they plan to walk into your properties to see exactly what they’re valuing.  “Desk top” valuations aren’t always accurate.

Tip: If valuing investment properties make sure your tenant isn’t spooked! Your Property Manager will need to tread gently and make it clear to them that you are not selling and simply want to know the value of the property for your own finances.

 

Buffer

Consider taking a lump sum of money from your equity and placing it in your mortgage off-set account.  By having cash set aside for emergencies, even if the worst was to happen, such as losing your job, you’ll know that you have a certain amount of funds available to cash flow your living expenses, including your mortgage.

While the country is enjoying low variable interest rates, the likelihood is that you’re on a pretty good mortgage rate but are you sure you can’t do better?  Shop around other lenders and you could end up saving yourself $1,000’s per annum!

As most people’s lives are fast paced and ever changing, wills usually need updating regularly. If you’re part of the 65% of Australians who don’t even have a will then make the call now – your hard earned assess should be bequeathed exactly where you want them to go.

You need to visit your solicitor if any of the following have happened since you last updated or wrote your will….

  • You have bought/sold a property
  • You have set up a trust
  • You have got married or divorced (including de-facto relationships)
  • You have had a child or grandchild
  • You have changed your mind about who to leave your assets to
  • Any of your beneficiaries circumstances have changed, especially if they’ve died
  • Your executor has died, become unwell or unwilling, changed their name or been convicted of a crime
  • You’ve changed your financial affairs in anyway such as sold or bought a business, set up a self managed super fund or retired

 

For more information please check the NSW Legal Aid link below:

http://www.legalaid.nsw.gov.au/publications/factsheets-and-resources/why-make-a-will/

 

There are many insurance policies needed to enable most of us to sleep at night! However, are you sure yours are up to date? If your circumstances have changed maybe it’s time to revisit your policies? Here are some of the main reasons you should call your Finical Planner:

  • You’re bought or sold a property
  • Your income has changed
  • Your responsibilities have increased or decreased (including having children)
  • You’ve been widowed, got married or divorced (including de-facto relationships)

Putting a big, fat tick next to the above “to do” list will provide a strong foundation for the rest of your resolutions to build from.

Wishing you all a fabulous 2013 and looking forward to hearing from you soon!

 

Elaine Davies

0412 362 133

Elaine@yourempire.com.au


By Elaine Davies

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