Zika Virus – What’s the Buzz?

Posted on 14/02/2016 by daniel-admin

If you’ve read the paper, watched television or consumed any social media in recent weeks, chances are you would have heard of the Zika virus (ZIKV) and its fast growing spread across the world.

But how does the heightened awareness of the Zika virus relate back to financial wellbeing? And why are we writing a blog post on it? Well, allow us to present some facts and figures within this article to point out the relevance of this current affair and its link to your financial security – more specifically, insurance.

What is it?

Since 2015, the Zika virus has spread rapidly to a number of countries, particularly in the Americas. It is known to be transmitted by mosquitoes and people planning travel around the world are advised to check whether the country they are planning to visit has active Zika virus transmission.

Most infected people have no symptoms or experience only a mild illness but the virus has been linked to microcephaly, a neurological disorder in which infants are born with undersized heads.

Key facts

A mosquito-borne disease
Transmission has been confirmed by various scenarios. Predominantly by the bite.
Usually no symptoms
One in every five cases, infection causes an illness with fever, rash, conjunctivitis, severe headache and muscle pain
Transmission of the virus is usually not severe or require hospitalisation
Outbreaks have been reported in tropical Africa, Southeast Asia and the Pacific Islands
All cases in Australia have been a result from travelling overseas
No specific treatment or vaccine currently available
Best form of prevention is of course avoiding being bitten by mosquitoes in impacted countries
Pregnant women who get ZIKV, may have birth defects in their offspring, including a serious condition known as microcephaly. Studies on this are required and evolving.

Zika virus infection is diagnosed through:

medical history, including a travel history to look for any exposure in a country with active Zika transmission in the two weeks prior to illness
physical examination, to look for evidence of the infection
blood tests

Is it in Australia?

Currently, 23 cases have already been identified in Australia. The World Health Organisation has officially declared this virus as a world health emergency.

Recent news stories have reported that while people have tested positive for the Zika virus in Australia, there was no risk to the public as the virus was not be transmitted person to person and was not present in Australian mosquitoes.

A recent ninemsn article confirmed the breed of mosquito capable of carrying the Zika virus has been found at Brisbane’s international airport seven times in the past year.

But what’s the link to my financial wellbeing?

Given this virus is all over the news, we thought it would be a good idea to investigate how it is relevant to one’s insurances. Basically, we expect that through the insurance application process, insurers will increase questions surrounding your previous or intended travel and any potential relationship or links to this virus.

Should the unthinkable happen and your or a member of your family get struck down by this virus, you need to make sure you have appropriate insurance in place to cover all sorts of outcomes.

Why is it important to review my insurance now – Including Child Trauma cover?

This virus has the potential to increase liabilities on insurer’s books, specifically for claims pertaining to consequences of contracting the virus and more specifically if your offspring is affected by microcephaly.

Insurance has always been an important part of client’s long term financial wellbeing, however more specifically, Child Trauma cover has never been so important with many consumers unaware of its existence.

The cover provides financial support should the unforeseen happen to your children and most importantly, it helps with any financial stress, to provide choices to aid in your child’s recovery.

Many insurance providers include child cover options allowing cover for children to be added to any Death, TPD, or Trauma cover taken out by the parent(s).

What does it mean?

If either you or your partner become exposed and this exposure is evidenced through your medical history, the policy terms offered to you may include an exclusion.

What next?

For the most up to date information on countries experiencing active Zika virus transmission, stay tuned to the Department of Foreign Affairs and Trade Smartraveller website.

In terms of making sure you and your family are protected or to check the clauses in your own insurance policy, contact your Financial Planner to discuss your personal insurance plan.

References

Claiming Your Mobile Phone as a Work-Related Deduction

Posted on 24/01/2016 by daniel-admin

Most people would know that you are able to claim your mobile phone expenses as a work-related deduction, however there is often confusion around how much can be claimed and how the claim can be supported. To help clear this up a little, here is what we do with your mobile phone expense claims at The Hopkins Group.

First of all to be able to claim work-related deductions the Australian Taxation Office (ATO) has a few requirements:

You must have spent the money yourself and weren’t reimbursed
It must be related to your job
You must have a record to prove it (there are some exceptions to this rule)

When considering mobile phone expenses, we break claims down into two categories, split by how much you intend to claim.

Claiming under $50

If you use your phone for the odd phone call or text message, you can calculate your deduction using the following from the ATO:

$0.75 for work calls made from mobile, and
$0.10 for text messages sent from your mobile.

Example:

On occasion Jane uses her phone for work, making on average three calls and ten text messages a month. This works out to be:

3 calls x 11 months x $0.75 = $24.75

10 SMS x 11 months x $0.10 = $11.00

Overall Jane can claim a deduction of $35.75

Why 11 months? The ATO makes the assumption that Jane has taken the four weeks annual leave allocated to her during her working year, bringing 12 months down to 11.

Claiming above $50

For those that use their phone more regularly, you are required to keep a record of all work-related calls and messages. To work out how much you can claim, the easiest option is to identify on an itemised bill the percentage of work-related calls made from your phone or the percentage of time the phone is used for work purposes.

Example:

Bob is on a $70 per month phone plan. To claim some of this cost, he goes through one of his bills and determines that 60% of his calls are work-related.

Bob is able to claim:

$70 x 11 months = $770

$770 x 60% = $462

If you don’t receive an itemised phone bill, don’t despair — it is still possible to claim your phone expenses. To do so, you will be required to keep a log book of your calls for a four week period, showing all calls made and the nature of each call.

Example:

Phoebe uses a prepaid mobile, which costs her $40 each month. Phoebe keeps a record over four weeks of all her calls and calculates that 30% of her calls are work related.

Therefore, Phoebe can claim:

$40 x 11 months = $440

$440 x 30% = $132

Substantiation of claims has been a focus of our accounting team, as we work with clients to ensure that we ask the right questions and that you have the right information on file for your claims. As a general rule any deductions you intend to claim need to have supporting documents, except for those under $50. These documents need to be kept for up to five years.

If you have questions about claiming work-related deductions such as mobile phone usage, please don’t hesitate to contact The Hopkins Group Accounting Team.

—

Abigail Lee is an accountant with The Hopkins Group (John Hopkins Accounting Pty Ltd). This blog post contains general advice only, which has been prepared without taking into account the objectives, financial situation or needs of any person. You should, therefore, consider the appropriateness of the information in light of your own objectives, financial situation or needs.

Much ado about Brisbane

Posted on 18/01/2016 by daniel-admin

Sydney may have the harbour and Melbourne’s known for its graffiti laneways, but why is everyone talking about Brisbane at the moment?

From an investor’s point of view, it has so much to offer. Strong economy? Tick. Increase in council approvals? Tick. Growing population? Tick.

As investors are being priced out of the market in Melbourne and Sydney, attention is turning to Brisbane where it is still affordable to invest in property. However, it won’t stay like this forever. Prices are rising and it won’t be long before Brisbane catches up to the other major metropolises. Median house prices have increased to $610,000 and auction clearance rates have also steadily increased.

So the time to strike is now. Conditions are ripe for exploring opportunities in Brisbane thanks to a number of factors.

Population growth

Queensland’s population is growing – but where are they all going to live?

Previously, the sunshine state’s population growth has been stimulated through overseas migration and natural births. However, with the cost of living in Sydney becoming unaffordable, the recent increase in population can be linked to the number of people moving north from Australia’s major cities. Queensland is experiencing the highest percentage of interstate migration than any other state as people seek a ‘sea change’ and more affordable lifestyles and housing. This in turn creates long term demand for housing and opportunities for investors to capitalise on the current housing shortage.

Diversified economy

In recent years, Queensland has been known for its resources boom, but as the saying goes, you can’t put all your eggs in one basket.

The state has a diversified economy and remains the jewel in Australia’s tourism crown. International visitors are ensuring the state’s tourism industry remains buoyant with Tourism Research Australia figures showing that foreign tourists injected a record-breaking $4.6 billion into the Queensland economy in the year to June 2015. International visitors arriving in Queensland were up 7.7 percent on the previous year.

And there’s no sign of it slowing with the lower AUS dollar encouraging overseas holidaymakers.

Starwood’s W Hotel, which is one of the world’s most prestigious hotel chains with hotels in Paris, New York, Beijing, will be building its first Australian hotel in Brisbane in 2018 in preparation for Gold Coast’s Commonwealth Games and the opening of Queen’s Wharf. These tourism related projects act as a catalyst and stimulate the entire state economy – especially within the property and business sectors.

HIA senior economist Shane Garrett said residential building was making a crucial contribution to economic growth at a time when other areas of investment were weak.

According to Master Builders Queensland Executive Director Grant Galvin, the building industry had recorded its best figures since the global financial crisis.

“It’s driven by low interest rates and no change in unemployment,” he said.

“As mining has come off, housing and construction have picked up. We’re buoyed by the residential sector driving the economy at the moment.”

Approvals boom

Local councils are coming to the party and giving the greenlight to building developments like never before.

According to the Courier Mail, there has been a 22 per cent increase in the number of residential house approved by councils compared to the previous year, taking it up to 30,000 approvals in 2014. This is good news for investors, as developers are being given the greenlight to start new projects.

Urban Development Institute of Australia Queensland boss Brett Gillan said the approvals boom had been a growing trend for the past 12 months. While Sydney and Melbourne prices continue to soar, the development boom is expected to continue in Brisbane and in doing so, stimulate the local economy.

Rental yield

Investors can feel confident that their properties will deliver a return in Brisbane. CoreLogic data reported last year that Brisbane delivered the highest rental yields of any of the five mainland capitals with houses returning 4.4 per cent and apartments sitting at 5.4 per cent at the end of August.

Investing in Brisbane

The Hopkins Group has long identified Brisbane as an untapped market for property investors. Our portfolio offers a number of recommended properties in the sunshine state and we see the potential in this major metropolis for investors who want to think outside the square.

Click here for a recent webinar on why we’re investing in Brisbane and click here to view our latest recommended properties including projects in Fortitude Valley, Lutwyche and Cannon Hill.

The Queensland housing boom is here for the long term. Now is the time to get in early before this major metropolis becomes another Sydney or Melbourne. You don’t want to miss the boat.

Resources

Building on Housing Boom, Matthew Killoran, Jeremy Perce and Jacinda Tutty, Thursday 3 September 2015, Courier Mail
Investors drive up Brisbane prices, Michael Bleby, Thursday 3 September 2015, The Australian Financial Review
Metro Property Development – News, Jimmy Huynh, Thursday 3 September 2015
Construction boom to flow into 2016, Courier Mail, Tuesday 1 December 2015

Monica Jiang is a Property and Contracts Coordinator with The Hopkins Group (John Hopkins Property Pty Ltd). This blog post contains general advice only, which has been prepared without taking into account the objectives, financial situation or needs of any person. You should, therefore, consider the appropriateness of the information in light of your own objectives, financial situation or needs.

Sharing is caring | 2016 New Year’s Resolutions

Posted on 07/01/2016 by daniel-admin

Once the dust settles from Christmas and we settle back in to work, study and the daily grind, our thoughts inevitably go to what lies ahead.

For some, the coming twelve months promise to deliver significant events and milestones to look forward to, but for others, the new year provides an opportunity to focus on smaller achievements and starting the year on the right foot.

Whether they are finance, fitness, travel, career or relationship focused, goals are best realised when said out loud. By sharing your goals or New Year’s resolutions with others, you have a much better chance of achieving them. Friends, family and colleagues can hold you accountable and check on your progress to keep you on track. Pride can kick in and you’ll want to achieve so as not to have egg on your face at the end of the year when it comes time to review!

It’s also important to set SMART goals – specific, measurable, attainable, relevant and time bound. When you follow this framework, you’ll find it easier to tackle your goals and keep an eye on your progress. And make sure you have a good balance between long term and short term goals, you need to be able to see progress and tick things off your list to keep you motivated for the bigger goals. It also helps to vary the themes – don’t only focus on your finances. Challenge yourself socially and physically and this will keep you interested and engaged. There’s nothing like conquering a soufflé to feel accomplished and clever!

We asked around The Hopkins Group office to find out what our team members are focusing on in 2016, and also if they had any tips to share – both professionally and personally – to help others on their journey this year.

Samandah Matty, Property Manager

To actually use my gym membership more than once a week!
Spend more time at home with my family.
To travel to Europe! (But I need to have leave approved first . . . Lorena!?)
To stop eating all the biscuits in the kitchen at work!

Abigail Lee, Graduate Accountant

Donate more to charity – I have always donated to charity and have volunteered for the leukaemia foundation, this year I want to do a little more for those that need it.
As I am marrying a Dutch man I will be taking on lessons this year to learn how to speak Dutch.
I want to finish what I start – I always get excited about new projects but tend to never finish… So this year I plan to finish everything I currently have started before taking on anything new.
Be more organised – I feel I am normally an organised person, but with family coming from overseas, a wedding and a trip to Europe to plan, I think I need to up my game.

Charmaine Offer, Office Assistant and Personal Assistant

I’m doing no chocolate for a month which includes my love, Nutella. I have a massive tub with my name on it on my bedside table waiting to be used!
The Herbalife one month challenge – clean eating for the month!
The 52 Week Saving Challenge where you put away that week’s number in cash i.e. if it was Week 23, that week I must put away $23. By the end of the year I hope to have saved $1378.

Pip Middleton, HR Coordinator

My goals for this year are pretty, um, not sure the word… I don’t think they are deep, but they’re things I know I’ve struggled with and now that I’m having a baby, I think that I would like to work towards achieving them in order to (hopefully) influence my own little girl!

Patience: I sometimes struggle when things aren’t done my way and on my time frames. Be better at accepting (and even embracing!) a lack of control!
Love myself a little more: I’m not good at believing I’m good at much, so I want to try change that and not beat myself up if I make mistakes. This one is not just related to motherhood. I want to be a good mum by doing the right things, but more than that, I want my kid/s and those around me to see that it’s ok to not be good at things or perfect: there’s no harm in that and it’s not a reason to be down on yourself!

Editor’s note: On a less serious note, Pip also provided a list of hilarious New Year’s Resolutions that were too good not to share.

Look to Kanye for inspiration on how to love myself a little more. NB. However, I am fully cognisant that I would make a terrible leader of our country and therefore will not aspire to such ridiculous ideas of grandeur.
Not call my daughter Saint Middleton. See above ‘Kanye’ for reason (if you need a reason to not call a child Saint).
Not leave my daughter in a coffee shop like I regularly do with my mobile and sunnies. Probably should have put this as Priority 1…
Not allow Bradley Cooper to fall in love with me: so far so good for 2016, but I think this one will be a struggle.
Not get annoyed when my mum asks me (again) what her wifi password is. 1. I don’t know it, and 2. It’s set up to auto connect.
Passwords: Branch out and add a second password to my world.

Brian Godfrey, Finance and Mortgage Adviser

Visit Berlin
I committed to only buying three ties this year
Dine in a different Yarra Valley winery every ten weeks
Definitely time to build up my repertoire and expand from my one chicken curry dish

Nicholas Siemensma, Paraplanner

Only buy something with a note. All the coins you get as change, put into a money box. I find it works well because a) it’s a good way to save all that annoying change; and b) having to break a note to buy something small like a chocolate bar or something will make you less likely to do it!

Durham Kenigsvalds, Group Financial Controller

Clearing the clutter! I’ve started with my desk at work and plan to keep it tidy for the rest of the year

We’ll check in with our staff throughout the year to see if they’re on track to realising their goals for 2016, but in the meantime, we encourage you to put pen to paper and actually set out some plans for yourself this year.

While we can’t snatch a Tim Tam from your grasp or take out a restraining order on Bradley Cooper (sorry Pip!), we can help you with your financial planning and investment goals. Call 1300 726 082 to book in with one of our Financial Advisers who can help map out your financial future for 2016 and beyond.

Strike while the iron is hot! It’ll be Easter before we know it . . .

All I Want for Christmas is to Stay out of Debt

Posted on 16/12/2015 by daniel-admin

Merry Christmas and Happy New Year!

With Christmas rapidly approaching, now is the time to set your Christmas spending plan in motion.

There are some simple rules to follow to avoid unwanted January debt. Most of us know them, yet how well do we implement them?

Avoid Impulsive Buying

Write a list. Know who you need to buy for and set limits on how much you will spend for each person. Stick to this limit.

“The closer it gets to Christmas, the more likely you are to panic buy and break your budget,” says ME Bank spokesperson Rebecca James.

Plan to shop ahead of time to avoid putting too many purchases on the credit card at the last minute.

Do some research before going to the shopping centre by going online and comparing prices.

Be in Control of Your Credit Card

The Retail Council Christmas Spending Index for 2015 is forecasting that “Nationally $35 billion is expected to be spent in the lead up to Christmas”.

Credit cards make it too easy to spend money. Only spend money that you know you can afford to pay back by the time the interest free period runs out on your credit card.

With an average credit card interest rate around 17% that thought alone should deter you from overspending on the plastic. Credit card interest rates are more than nearly four times the interest rates of some mortgages.

Don’t kid yourself by sharing the spend over multiple cards. Consider using only one card as it is a lot easier to keep track of what you have spent when it’s all on the one bill.

Use Software to Track Your Expenses

If you have been unsuccessful at sticking to a budget in the past, take advantage of free software to track your expenses.

The MoneySmart website features an application called TrackMySPEND which tracks your spending and allows you to set a limit. It can be downloaded to your smart phone so you can monitor your spending on the go and keep track of every single purchase.

During this festive season it is easy to overspend. Remember;

If you fail to plan; then you plan to fail.

Speaking of planning, if you would like some help developing your financial plan for 2016, why not give us a call on 1300 726 082? Our financial planning team is here to help. We can discuss your current situation, and look what you want to achieve, both now and in the future. It’s never too early to start planning for next Christmas and I look forward to the opportunity to help you reach your financial goals.

—

Disclaimer: John Hopkins Financial Services Pty Ltd are Representatives of WealthSure Financial Services Pty Ltd Level 1 190 Stirling Street PERTH WA 6000 ACN:130 288 578 AFSL: 326450.

General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

How to Pass a Final Inspection

Posted on 14/12/2015 by daniel-admin

At the end of every tenancy, our property managers conduct a final inspection to ensure the property is left in the same condition as it was given to the tenants at the start of their lease. This is an important step in the vacate process, as it helps us determine how much, if not all, of the bond will be refunded to the exiting tenants.

Our aim at this inspection is not to “nit-pick” or grab at your bond – we always take wear and tear into consideration – but we need to make sure that the property is presented in a reasonable condition to the next tenants. If for some reason we need to deduct from the bond, we will only take what is needed to bring the property up to this reasonable condition.

To help you avoid any unnecessary deductions, I have come up with a few hints and tips to help ensure you pass your final inspection and make the process of moving out a smooth and stress-free experience. I’ve highlighted a few areas below that your property manager will always pay close attention to, as in the hustle and bustle of vacating, they are often overlooked by even the most discerning tenants.

Showers, screens and base
Make sure you scrub! Check to ensure that any soap scum has been removed and shower screens are clear. Your bathroom should sparkle.

Kitchen stove top and oven

Like the bathroom, a little bit of elbow grease goes a long way in the kitchen. Wipe down the stove top and splash back, and ensure the oven is thoroughly cleaned. Don’t forget to clean the range hood, there can often be a build up of oil in the mesh so make sure you pull it out and rinse it!

Walls and minor scuff markings

Sugar soap works a treat when cleaning walls of minor scuff marks. Wipe down the walls as you would any other surface, and watch the scuffs disappear!

Carpets

Ensure your carpets are professionally steam cleaned, and receipt is provided when you return your keys. Have a chat with your property manager before you book in a carpet clean, as they’ll often have a preferred cleaner that they can recommend.

Light globes

Don’t leave the next tenants in the dark! Check to all the light globes to ensure they are in working order, and replace any that have blown.

There is an old adage that says “treat others how you want to be treated”, and I am a strong believer that the same sentiment should apply to your rental property. You wouldn’t want to move into a neglected property, so it makes sense that you leave your property in tip-top condition for the next tenant. By watching out for the items above and following our helpful tips, hopefully we can make your vacate a dream and refund your bond in full.

For more tips on how to master a vacate clean and complete all those annoying tasks like scrubbing the walls, cleaning the range hood or getting your shower screens to sparkle, try YouTube for some helpful video tutorials. In the meantime, download a copy of The Hopkins Group Vacating Checklist that might prompt some things you hadn’t thought of.

To discuss any of your vacate concerns as a tenant or if you have any questions about preferred suppliers, don’t hesitate to contact a member of The Hopkins Group Property Management team.

Investment Diversification, the Role of Risk Profiling and the Importance of Advice

Posted on 25/11/2015 by daniel-admin

For the average investor, a short term, sharp decline in the markets and increased volatility can be enough for them to re-engage with their financial adviser and seek advice on moving out of growth assets and into defensive assets. Often, the most common reaction from clients is a desire to liquidate their investments and set aside funds from the sell-off in cash.

While a client’s appetite for risk is assessed through a completed risk profile, before they invest their money, time after time we see the psychology of a client change during a decline in the markets and economy.

What is a Risk Profile and how Does it Work?

A risk profile is an industry standard tool, which varies between Australian Financial Services Licensees, and is designed to identify the amount of risk an investor is willing to accept. Assessing a person’s tolerance to investment risk is a key aspect of portfolio construction and is critical to determining appropriate asset allocation, the recommended investments and expected returns.

Psychology and Emotion

As financial planners we are not experts in psychology, however as subject matter experts in managing clients’ money, through both negative and positive times, we encourage our clients to detach emotionally. We do this by revisiting the client’s original appetite for risk in conjunction with their goals and objectives, i.e. re-visit the client’s journey, why they initially sought advice and what they set out to achieve.

We encourage clients to invest their money in line with their investment time frame into a diversified portfolio of strongly recommended and researched assets. Reacting to market events and attempting to “time the market” is something we do not encourage.

Advice Matters

Instead of making short-term decisions about your investments, a better idea may be to develop and maintain a long-term investment strategy in conjunction with goals and objectives with your adviser. It has been proven through history that kneejerk reactions to sell down underperforming assets may be ill-timed. For example, in 2007 when the global financial crisis started to unfold, the ASX all ordinaries market was at an all-time high of 6,748.90 (October 12th 2007). In March 2009 the market was at its lowest point of 3,145.50 before rebounding in March 2015 where it rose to 5,975.50. Today the market is sitting around 5000 points – sure, it’s not back to its 2007 peak but you’d be kicking yourself now if you’d become impatient and sold at the low in 2009.

If your fund continues to re-invest at lower levels during market down turns, you will be rewarded when the market recovers.

Conclusion

In light of market volatility, I believe clients who seek and pay for ongoing personal advice will be better placed over the long term. Ensuring your portfolio includes an array of different asset classes through diversification is an important strategy to smooth returns over a long investment time frame. Markets will always trade with some level of volatility, but taking this approach helps even out the highs and lows over time.

If you are interested in developing your portfolio and have never sought financial planning advice before, we encourage you to contact the team on 1300 726 132, to make a financial planning appointment. Initial consultations are free and with no obligation. Alternatively, if you are an existing client looking for additional value add advice, please also do not hesitate to contact us to discuss your current situation and future financial plans.

Disclaimer: Shane Light is an Authorised Representative and John Hopkins Financial Services Pty Ltd is a Corporate Representative of WealthSure Financial Services Pty Ltd Level 1 190 Stirling Street PERTH WA 6000 ACN:130 288 578 AFSL: 326450.

Four out of Five Stars for our Property Services

Posted on 29/10/2015 by daniel-admin

John Hopkins Property and Lantern Property Partners have been awarded four out of five stars by SQM Research Pty Ltd.

Excellent; we are thrilled for our property team.

SQM Research is led by Louis Christopher. It would be fair to say his organisation could reasonably lay claim to being Australia’s preeminent property industries rating house.

SQM researches everything from the economy, the property market around Australia, individual properties, general investment vehicles through to organisations in the investment world, including property organisations.

In order to assure the various individuals and organisations (both large and not so large) that accept our advice with property recommendations and due diligence processes, we undertook this lengthy, arduous and intrusive process. We put ourselves, our past and our present out there to be exposed and to be judged by the best.

This meant the collation of a mountain of documents, thorough inspection of everything from our financials and our balance sheet to our staff and our leaders, contracts and relationships with external organisations and individuals, lists of properties purchased by our clients over thirty five years, our philosophies and values and systems. Ten months later, we have been rewarded with a brilliant result.

Now our aim is to improve even further. Although Louis rang me prior to the formal disclosure of our rating score to explain that his organisation had never delivered a four out of five star rating for an organisation first time up, and he was very pleased to tell me in person.

I really hope you don’t think I am skiting too much, it is just that we are so thrilled and so proud.

We have been involved in property for a long time and to have an independent house with the credentials of SQM recognise our commitments to our clients, associates and the property industry at large is really heartening.

—

SQM Research Star Rating:

Investment products are awarded a star rating our of a possible five stars and are placed on www.sqmratings.com.au

Following are descriptions for each of the star ratings, which have been developed as a guide for dealer group research teams and investment committees:

– 4.5+ stars – Outstanding. Highly suitable for inclusion on APLs.

– 4 stars to 4.25 stars – Superior. Suitable for inclusion on most APLs.

– 3.75 stars – Favourable. Consider for APL inclusion.

– 3.5 stars – Acceptable. Consider for APL inclusion, subject to advice restrictions.

– 3.25 stars – Caution required. Not suitable for most APLs.

– 3 stars – Strong caution required. Not suitable for most APLs.

– Below 3 stars – Avoid or redeem. Not suitable for APL inclusion.

SQM Research has no involvement with Lantern Property Partners, The Hopkins Group, or any of the organisations contained in their product disclosure statement. This assessment does not constitute an investment recommendation. It is designed to provide investment advisers with a third party view of the quality of this fund, as an investment option. SQM Research charges a standard and fixed fee for the third party review. This fee has been paid under the normal commercial terms of SQM Research.

NRAS – What is it and how does it work?

Posted on 22/10/2015 by daniel-admin

The National Rental Affordability Scheme (NRAS) was introduced by the Federal Government in 2008 as a way of creating affordable housing and stimulating the building industry. The incentive was to supply new properties in Australia that would be leased at 20% under the market rate to-low to moderate income earners.

As an owner of a NRAS dwelling, the property must be brand new or not have been lived in before in order to qualify for the NRAS dwelling ID.

To qualify as an NRAS tenant, the household must meet a gross income limit. For 2015/16, a single tenant would have to earn $47,904 or less to be able to participate in the scheme.

The investor, although receiving 20% less market rent for their property, receives a healthy annual tax free incentive (indexed annually) from the government for being involved in the initiative. The incentive for 2015/16 is made up of $8,187.78 (Federal Government contribution) and $2,729.26 (State Government contribution). Although NRAS property management costs are slightly higher, the investor is not charged re-leasing or advertising charges over the term of the NRAS agreement.

The incentive is paid for 10 years whilst the property is still operating under NRAS, unless at any stage the investor decides to owner occupy the property or remove the NRAS dwelling ID attached to the property at any time.

As a property manager at The Hopkins Group, it has been interesting to see the calibre of tenants who apply for properties within the scheme. Open for inspections are conducted as normal and there is a general pre-screening of the applicant done in the office whilst income declaring documents are completed and reviewed by the housing provider.

Having leased over 60 NRAS properties, the application process for NRAS tenants can be quite lengthy, given there is a large amount of accompanying paperwork that is required, including obtaining tenant bank statements, NOA’s, payslips etc. Given the work involved from both the property manager and the tenant, I’ve found that tenants who have successfully applied for an NRAS property are very appreciative of securing a tenancy and generally become good tenants, given the incentives in place for them to remain in the property and work involved to get approved.

If you are a landlord or tenant interested in NRAS, or would like to speak with someone with relation to any NRAS enquiry, please feel free to call our office on 1300 726 082 and ask to speak with a property investment adviser or property manager who will be able to assist.

Source: www.dss.gov.au

Top Five Financial Planning Mistakes

Posted on 24/08/2015 by daniel-admin

Life is an uncertain game full of peaks and troughs. Financial planning is all about setting up your current position to best take advantage of any opportunity that may arise whilst protecting against any potential downfalls.

It is the process of meeting your life goals and objectives by channelling your finances so you are free to live with a sense of structured freedom.

When you picture your financial independence, what do you see? Enjoying life to the fullest, having successfully secured your family’s needs? Seeing the world? Working on a cause you are passionate about? Financial planning can help you best achieve your idea of complete nirvana from all your financial worries, so you can best position yourself and potentially attain peace of mind in the process.

Carefully planning you finances can set you up for the long term, yet time and time again many individuals don’t seek financial planning advice until they reach a later stage in their life, often not even until pre-retirement age.

As a financial planner, the best advice I can give is to not put off something so important until you are nearing retirement age; start now!

Financial planning is a systematic process. It doesn’t follow a random path. One size doesn’t fit all. It is a step-by-step process designed to help you evaluate your financial position, goals and aspirations through a carefully constructed financial plan. Financial planning involves calculating the pros and cons of a situation, which can be exhausting if professional guidance is not taken.

There are many mistakes individuals can make when trying to sort out their finances without seeking appropriate advice. Below, I have outlined my top five avoidable mistakes investors can make whilst doing their financial planning:

1. Ignoring Inflation:

To put it simply, inflation is a ‘cost’ we all pay. It is well known that most company’s incorporate annual income increases for employees year after year to coincide with inflation, however what people tend to skim over is the simultaneous rise in expenses too. If ignored, inflation will see your savings deplete leaving little surplus for goals. If you only account for expenses as being “static” (expenses not increasing in value due to inflation), then your anticipated savings will be unrealistic. This paints an incorrect picture about the ability to reach goals due to inflated savings. Hence investors should always incorporate a reasonable rate of inflation whilst planning their financial goals.

2. Clarity of Goals:

We all have multiple goals we want to fulfil in life, be it children’s education, wedding, buying a property, travel or retirement. Whilst most people have some idea about roughly how much money will be needed to achieve each goal, most often than not we fail to put them on paper. Quantifying every goal and adjusting them for inflation helps in determining the savings that will be required in each circumstance. This ensures an asset allocation that is in tune with your individual risk profile and investment goals.

It’s vital you are 100% honest and clear with your financial planner in terms of the clarity of your goals, so they can construct the best plan in line with your objectives.

3. Not planning for contingencies:

Every person should have a Plan B. Whether it’s a cash buffer, exit plan, insurance or defensive investments – something should be considered. Events or circumstances such as temporary disability, loss of job or any other situation could potentially put your income at risk. A common strategy amongst investors is to set aside some money into liquid assets (such as money in a savings account) which can be easily withdrawn in a time of emergency. This fund should not be used for discretionary expenses (like a holiday or luxury purchase).

4. Inadequate Insurance:

A life insurance policy will help the family tide over the loss of income of a deceased individual, or other insured event. Although the loss of the individual cannot be replaced, having sufficient insurance in place can safeguard the family against monetary problems. While a financial planner can advise you on the level of insurance cover you should have, generally this amount takes into account your current debt levels, income, dependents and estate planning needs.

5. Unrealistic Assumptions:

Financial planning is essentially a projection of your future based on certain assumptions, such as life expectancy, rate of return on assets, rate of inflation, etc. Investors generally tend to be over confident when it comes to expected returns from equity and debt. Similarly, life expectancy and inflation assumptions are often inaccurate. Unrealistic assumptions result in unrealistic planning, which can have significant implications.

Whatever your goals or objectives, it’s important you take the time to review all aspects of your financial situation and find an experienced financial planner who you trust and get along well with.

Remember, it’s never too early to put an appropriate financial plan in place. Don’t fall into the trap of making the same mistakes others have made; your financial future is simply too important.

For more information on putting together a financial strategy, or for any queries in relation to financial planning, please feel free to call our office on 1300 726 082 and ask to speak with a financial planner who will be able to assist.