CLIENT INFORMATION NEWSLETTER AUTUMN 2011
Caring for
disaster victims
By Anthony Tomazin,
Good news
for home buyers
Managing Director
With floods in
Queensland, Victoria
and Tasmania, a
T
massive cyclone he financial world has changed clients and can provide expert advice on all
laying havoc to immensely since the turmoil of the finance products at no cost to you.
the far north and Global Financial Crisis and we’re The financial world can be a confusing
devastating bush happy to report that in recent months place. How do you find the home loan deal
fires in the West things have definitely changed for better. that suits your needs while taking advantage
it’s certainly been a tragic start Australia has weathered the financial storm of this increased competition?
to the New Year for many of our very well.
customers. If you are worried
Where once about the hassle of
At Royal Guardian we’ve been taking the purse strings changing loans and
every step possible to ease the plight were drawn getting something
of those facing great difficulties and tightly shut, better, relax.
attempting to make their immediate today banks and
financial situation as easy as possible. We’re here to
other lending make it easy for
We understand what you’re going institutions have you and make the
through and we’ve contacted our developed more whole experience
funds suppliers to ensure they do of an appetite as hassle-free as
everything possible to take care of our for lending and possible.
clients. credit conditions
Our specialised
We’re happy to report that they, too, are becoming
computer software
understand the difficulties clients face more normal.
guarantees we
and they’re handling the situation Australia’s will find the best
with great sensitivity. banks and other financial product from any bank and non-
As I said, it’s been quite a wild start financial institutions are becoming more bank Lender.
to the year. Let’s hope for better times competitive and that’s very good news for
So if you’ve had the same home loan for
ahead. homeowners because it helps exert a little
a number of years, your circumstances have
I hope you find this edition of the downward pressure on interest rates.
changed and you’re concerned you’re paying
newsletter interesting and useful. Another piece of good news is that we too much, it will be worth your while to let
offer free finance health checks to all our our financial experts take a look to see if
we can find you a better deal and save you
money.
Inside
» Getting the best finance for your » Median house price expected to
new car is vital break $650,000 this year We’d be pleased to take a look at your
» Lo Doc Loans are still alive » Would you lend money to yourself? existing home loan and other finance
» The easy way to get the right » QLD Flood Appeal arrangements so if you would like us to give
leasing deal for your business » Flats and townhouses prove a
you a free finance health check and help you
» Sydney building will surge by 2015 steady investment
save some of your hard earned cash, call us
on 133 455.
Getting the
best finance
for your new car is vital
Getting the finance right is just as
They don’t make cars like they used to. It’s little wonder then, that a shiny new important as getting the right car.
Thanks heavens for that! car is right at the top of many people’s wish
Today even the most basic models come lists. A far better idea is to let Royal Guardian
loaded with a host of comfort and safety If you’re in the market for a new car find the car finance package for you, rather
features and are vastly better built, more then getting the finance right is just as than the finance that suits the car sales
durable and more reliable than cars from important as getting the right car. person.
the “good old days.” Leaving it to the last minute and letting Call us today on 133 455 and let our
And in comparative terms, they’ve never the car dealer arrange the finance for you finance experts find the car finance
been cheaper. could cost you a lot of money in the long package that best suits your needs.
term.
Lo Doc loans The easy way to get
are still alive! the right leasing deal
Here’s a bit of welcome good news for the self-
employed. Lo-Doc loans are still available if you’ve got
for your business
solid evidence of your sound financial position.
There’s a renewed sense of business optimism in the Australian
It’s possible to get an 80% Loan to Value Ratio (LVR) loan air – a quiet confidence that the worst of the Global Financial
without BAS statement if you can supply financial details Crisis is behind us and it’s time to move forward.
such as an accountant’s letter verifying your income.
If your business is looking to growth and better times then you
In fact the more evidence you can supply to your would- might be looking at leasing equipment to make that a reality.
be lender, the better.
Leasing makes excellent business sense, but whether you’re leasing
That’s the good news. The not-quite-so-good-news is trucks, excavation equipment, earthmoving machinery or business
that the days when you could obtain a Lo-Doc loan for equipment of any kind, it’s vitally important to get the right leasing
almost the same interest rate as a PAYG income earner are deal to maximise the benefits.
behind us for the moment.
We’re experts at business leasing, so why not give us a call today if
As far as lenders are concerned, you’re still something of it’s time for your business to expand?
a risk to them and they’re demanding an interest rate that
reflects that.
However if you’re confident of your financial position and
have the evidence to prove it, then a Lo-Doc loan might be
just what you’re looking for.
If you’re interested we’re happy to explain the details and
organise appropriate applications for you, so pick up the
phone and call us today.
Sydney building
will surge by 2015
S Would
ydney’s supply of building lots
is expected to double by 2015,
according to BIS Shrapnel.
It’s expected to peak at over 7,000
you lend
lots in 2012/13, following an increase in
production from an average of 1700 per
year between 2005 and 2009 to just under It’s expected to peak at
3,000 in 2010. over 7,000 lots in 2012/13
money to
The research firm attributes the change economic conditions and bigger incomes.
to “a confluence of factors” including a
reduction in the cost of buying a new The upturn has been greatest in North
house compared to an existing, cheaper West Sydney but BIS Shrapnel predicts
yourself?
home. that as the upturn continues lot releases
will increase in South West Sydney and the
Developers are also being helped by Central Coast.
reduced state government levies which
have allowed them to proceed with more BIS Shrapnel also expects lot production
I
marginal projects. to increase across the county in the
f you’re thinking of applying for a
next five years with the Gold Coast and
Demand has also been strengthened by home loan in the months ahead then
Sunshine Coast seeing average annual
a shortage of dwellings and by stronger it really pays to do some preparation
increases of 32% and 27% respectively.
before applying for it.
Median house price expected
Lenders are interested in only one thing –
your ability to reliably repay their loan, so it’s
important that you can clearly demonstrate
to break $650,000 this year your ability to do that.
The easiest way to achieve that is to
reduce your existing debts, or potential
Rents are predicted to rise by 5%, and debts.
tight vacancy rates, will tighten further by A good place to start is by closing any
up to 1%. credit cards you’re not using. It doesn’t
Some economists are predicting a matter that the card in question has a zero
further two interest rate increases. If this balance and you haven’ t used it for months
happens it will have a negative impact on or years. What matters to a lender is your
affordability as buyers’ borrowing capacity potential for drawing on it, increasing your
is reduced. debts all round.
Widely anticipated electricity price hikes With that in mind it’s also an excellent
will make energy efficient features a “must idea to pay off your remaining credit card
have” for many buyers. Solar hot water and debt, reducing it to zero, then reducing
power will definitely make homes more your credit limit to $500 or $1,000 for
N
saleable. emergencies.
ew South Wales’ property market
Reducing debts on car loans is also a very
is expected to strengthen Hot spot good idea, as is paying off any outstanding
in 2011, as a limited supply Sydney remains NSW’s property’s“hot
of properties for sale or rent meets HECS debt.
spot”thanks to rental returns and strong
continued strong demand by investors Try to see your financial situation from the
employment, especially in the south west
and upgraders. perspective of a potential lender and ask
where house and unit rental returns are at
House and apartment/strata property yourself this simple question: “Would I lend
5.3 % and 6.8% respectively. In the west,
prices are expected to rise between 1- 5%, money to myself, given my income and level
house and unit rental returns are 5.1% and
while land prices are expected to stay flat. of debt?”
6.1% respectively.
Vacancy rates are heading downwards Remember, we’re here to help you with
Coastal areas will remain lucrative for
and weekly rentals rising as a shortage of home loan advice, so if you have any
investors. Investment is expected to
accommodation and worsening housing questions about preparing for a loan, or any
increase this year, as rising weekly rental
affordability, makes it harder for first other matter, just call one of our home loan
prices will improve returns.
homebuyers to get into their first home. experts today.
Queensland flood appeal
When the extent of the floods in
Queensland was becoming readily
apparent Australians responded with
Royal Guardian has long been
characteristic generosity, donating
recognised for its financial
goods and money to help the victims.
expertise, and it’s pleasing to note
It didn’t take long for one of our staff the awards we have received
members, Remonda Gabriel, to swing into commending our market-leading
action. products.
She encouraged staff members, family It is therefore particularly pleasing to
and friends to give generously. Items such list the awards we have received that
as clothes, food, appliances, furniture and honour the market-leading services
mattresses were donated to those in need. offered by Royal Guardian.
Well done Remonda!
Flats and townhouses
prove a steady investment
T
he collapse of the Between September 1980 and
equities market in September 2010 the price
2007-08 highlighted of a unit in Sydney rose by
the steady returns available 7.4% a year compared to the
from property in contrast to sharemarket’s average of 7.7%
the boom and bust nature of a year, but units didn’t see the
the stock market. stock market’s wild dips and
A comparison of the S&P/ spikes.
ASX 200 Index and the Real In fact shares and unit prices
Estate Institute of Australia have intersected during market
median price of units highs and lows at various
shows the share market points in the last 30 years.
outperforming units up to This shows that the steady-
September 2007 when the as-she-goes nature of property
Global Financial Crisis really bit, can provide less spectacular
at which time the share market returns but it also highlights
really took a tumble. the volatile nature of the ASX,
It pays to take a long term which can be quite a wild ride.
perspective on investment.
Client Services Variations
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P: 1300 888 077 F: 02 9715 4882
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E: clientservices@royalguardian.com.au
Sales P: 133 455 F: 02 9715 4700
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