The Aqua Blog — Aqua Wealth
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The RBA has kept interest rates on hold at 3.00% The Reserve Bank has kept interest rates on hold at its April board  meeting. The RBA’s decision means the cash rate has remained at 3 per cent — a  historical low — since the last 25 basis points cut in December. The decision matched financial markets’ expectations. The markets were  pricing in a 5 per cent chance of a fall in rates, and a 72 per cent chance that  a 25 basis points cut could take place this year. A string of recent economic data pointing to improving consumer sentiment and  a lift in the housing market, as well as better-than-expected jobs data for  February, meant the Reserve Bank was unlikely to cut rates further today. The easing cycle has seen the central bank take 175 basis points off the cash  rate since November 2011. RBA interest rate decisions in current easing cycle 2012 Dec 5: -0.25,...

Lenders continue to launch new loan products to cater for the soaring popularity of self-managed super funds (SMSFs). With many of the features of regular home loans, these products entitle trustees to borrow within their SMSF to buy residential investment property or refinance an existing SMSF loan. The loans are repaid from rental incomes and contributions paid into the funds. Since the laws were changed in 2007 to allow SMSFs to borrow funds to acquire residential property, this type of property transaction has become increasingly popular. Currently more than 800,000 Australians invest around $280 billion of superannuation through the SMSF structure and this is a trend that is expected to accelerate. SMSFs make up around one-third of the overall superannuation sector and have an asset value of $14.87 billion. One of the many attractions of a SMSF is that is puts you in the driving seat and allows you to do something pro-active...

Predicting the perfect time to buy is difficult, even for the experts, yet many investors get caught in the fear of buying at the 'wrong time'. The truth is that when to buy is not nearly as important as actually buying a property, particularly if you are planning to hold onto it long term. As long as you are prepared to keep your property through the good times and the bad, you needn't worry too much about temporary shifts in prices because it is still likely to end up being profitable in the end. If there's a timing issue that's important, it's getting your personal timing right: are your finances ready, do you have a plan...

While many buyers kept out of the property market in 2012, there are signs of a comeback. 2012 saw many buyers adopt a 'wait and see' attitude, but they are once again becoming active as the market starts to stabilize and interest rate reductions lower the cost of ownership. Four cash rate cuts by the Reserve Bank during the course of last year have meant that the rate now sits at a historic low of three per cent. The combination of low interest rates, improving rental returns and potential rises in home prices is tweaking buyer interest. The strength of the share market and relative economic calm overseas is also helping. RP Data's Tim Lawless is among the analysts who believe house prices will make a modest recovery during the year ahead, driven primarily by low interest rates. Chief economist at the Housing Industry Association, Harley Dale, also says he expects to see "some...

A strange thing happens in the mind when you buy something. No matter what it is—a pair of jeans, a car or even a house—in that moment when an object becomes your property, it undergoes a transformation. Because you chose it and you associate it with yourself, its value is immediately increased (Morewedge et al., 2009). If someone offers to buy it from you, the chances are you want to charge much more than they are prepared to pay. That is a cognitive bias called 'the endowment effect'. It's the reason that some people have lofts, garages and storage spaces full of junk with which they cannot bear to be parted. Once you own something, you tend to set its financial value way higher than other people do. When tested experimentally the endowment effect can be surprisingly strong. One study found that owners of tickets for a basketball match overvalued them by a factor of...

Aqua Wealth has been awarded Securitor's 2013 Practice of the Year Award for Victoria! The team at Aqua Wealth are very proud of this achievement and what we have been able to deliver to our clients in such a short period. A special mention also to Stefan and Frank who were nominees for the Victorian Rising Star Adviser of the Year awards respectively. Go team! ...

As Tony Schwartz of The Energy Project remarked, “The way we are working isn’t working.” It’s as true for the C-suite business executive and high-powered lawyer as it is for the tireless teacher and caring nurse. Think about the nurse who often skips her lunch to care for a patient, or the teacher who spends his free time helping students, leaving very little time for himself. Or the social innovator running on a daily regimen of two pots of coffee, five hours of sleep, and an exclusive diet of Ramen Noodles in order to bring about a better future. These people have a common thread throughout their work: a deep dedication and often all-consuming drive to give and serve others—at the expense of their own health. For the past few years, I’ve been working to help people establish the habits needed to better manage the unsustainable “give more, work more” cycle these...

When most well-intentioned aid workers hear of a problem they think they can fix, they go to work. This, Ernesto Sirolli suggests, is naïve. In this funny and impassioned talk, he proposes that the first step is to listen to the people you're trying to help, and tap into their own entrepreneurial spirit. His advice on what works will help any entrepreneur. Ernesto Sirolli got his start doing aid work in Africa in the 70's -- and quickly realised how ineffective it was. ...

You've overspent at Christmas and now you realise your bank balance won't cover your credit card debt. Before you plunge further into debt, it's a good idea to act quickly and consolidate your debts into a relatively low-interest product such as your home loan. Consolidation can be done by using features of your existing home loan, like redraw or line of credit, or alternatively by refinancing the entire home loan to borrow a larger amount. You might have several loans and debts like a car and personal loan, credit and store cards - and each of these will be charged at different interest rates, perhaps with account fees and other charges. Debt consolidation allows you to minimise the interest rate and fees being charged, while maintaining the same monthly payment as before. The more debts you have the more likely you are to miss a repayment. By consolidating your debts into one payment...

What features make a great apartment that renters will love and will make you money when you sell? Unique appeal Look for a feature that sets your apartment aside from others, whether it is larger floor size, a view, hallway entrance or hardwood floors that could be polished up. Older-style low-rise apartments are often considered a good choice by investors because this means there are fewer units the same as yours and greater opportunity to add value via renovation. New apartments also have their advantages as they can attract higher rent and depreciation benefits. If you can't decide between old or new, study the rental yields and capital growth history of other apartments on the block (request figures from the agent or use online property research reports). Small blocks Blocks with fewer apartments compare favourably to a lot of units in a large block because each owner owns more of the land - which...