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Fixed interest rate ideas are in a spin

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					                                                                                               Autumn Edition 2010

Fixed interest rate ideas are in a spin
                                                 THE Reserve Bank's decision last week to leave the
                                                 official cash rate on hold has put a new spin on the "fixed
                                                 or variable'' debate.

                                                 Financial markets have gone from pricing in a cash rate of 5.5
                                                 per cent by the end of the year to pricing in a rate of less than
                                                 4.5 per cent. That means variable rates are unlikely to rise by
                                                 as much as was feared, and also that fixed rates are due to be
                                                 repriced downwards.

                                                   While the decision of whether to fix or stay variable confuses
                                                   everybody at some point, the pressure on owners of
                                                   investment properties to get it right can be even greater
because many have two mortgages to maintain. However, experts say there are ways to minimise the impact
of a rate rise on your investment property, but any increase on your principal residence has to be taken on the
chin. So, we say, if you're going to fix anything, consider fixing the mortgage on your family home. "Broadly
speaking, there is more you can do about rate hikes on an investment property than there is on your home, but
talk to us as everyone’s situation is different''.

First, there is negative gearing the ability to add up all of your outgoings on your investment property, including
interest, insurances and expenses, and offset a portion equivalent to your tax rate off your tax bill. This doesn't
help much with cash flow. So landlords who are struggling can apply for an income tax variation which enables
them to have the benefits of negative gearing effectively added to their monthly salary. Investors can apply for
a Section 221D variation, which allows you to provide the tax office with an estimate of what your tax position
will be at the end of the year, the ATO will then contact your employer, who will deduct less tax from your pay
cheque.

Our advice from Infochoice.com.au chief executive Shaun Cornelius says the premium to fix rates is just too
high. "If you look at three-year fixes you're paying about 1.1 per cent more for fixed rates compared to variable
rates,'' he says.

Remember if at any time you are concerned about your current loan situation please call me to discuss any
options that may be available to you.

Competition Winner Announcement
The WINNER of our Summer Edition 2009 Newsletter ‘Win an Overnight Stay and Show Package’ competition is:

                                 ANGELA TILBROOK of Everton Park, QLD

Congratulations! You have won an overnight stay and show package in your Capital City to the value of $500.
Also in this issue:
    How big is the Internet?                              The type of getaway you fancy may depend on your star sign!
    Hobbies
 Page 2



How big is the internet?
                                                                        Epic scale... feel like you've got
                                                                        information overload? There are
                                                                        now so many website addresses
                                                                        that it would take one person
                                                                        31,000 years without any sleep to
                                                                        visit all of them | Source:
                                                                        news.com.au The internet has
                                                                        permeated everything from buying
                                                                        to banking. But just how big is it?
                                                                        Microsoft's Bing team puts the
                                                                        amount of web pages at "over one
                                                                        trillion". And Google has already
                                                                        indexed more than one trillion
                                                                        discrete web addresses. There are
                                                                        more addresses than there are
                                                                        people on Earth. The current global
                                                                        population stands at more than 6.7
billion. That means there are about 150 web addresses per person in the world.

Translated: If you spent just one minute reading every website in existence, you’d be kept busy for 31,000
years. Without any sleep. Bing was more generous with its estimate for those who take more time to read. "An
average person would need six hundred thousand decades of nonstop reading to read through the
information," it said.

Number of users - Mark Higginson, director of analytics for Nielsen Online, said the global online population
had jumped 16 per cent since last year. "Approximately 1.46 billion people worldwide now use the internet
which represents a solid 16 per cent increase from the previous year’s estimate (1.26 billion in 2007)," The
largest internet population belongs to China, which claimed this week to have more users online – 338 million -
than there were people in the US. However InternetWorldStats.com (IWS), a website that combines multiple
data sources, claims China's online population is more like 298 million, just a few million shy of overtaking the
US population. "With the rates of India and China still quite low, there is ample room for growth in the coming
decade," Mr Higginson said.

Measuring the online population can be tricky. There are servers, users, per capita numbers, and penetration
percentages to evaluate. It's an epic-scale guessing game using a series of sources to get just one number.
IWS combines data from the UN's International Telecommunications Union, Nielsen Online, GfK and US
Census Bureau. Its latest global figures puts the number of internet users in the world at 1,596,270,108. That's
just 23.8 per cent of the estimated 6,0706,993,152 people in the world. But it changes every day. "In terms of
the future, we anticipate mobile to contribute significantly to internet usage," Mr Higginson said. "In the US, the
number of people accessing the internet through mobile devices grew 74 per cent between February 2007 and
February 2009."

How we size up - According to IWS, the top 5 countries with the most internet users are:

1 - China (298,000,000 users, or 22.4% of their population)
2 – US (227,190,989, or 74.7%)
3 – Japan (94,000,000, or 73.8%)
4 – India (81,000,000, or 7.1%)
5 – Brazil (67,510,400, or 34.4%)

Australia comes in at 25th, with 16,926,015 internet users. But we zoom all the way up to 7th place if we
measure what percentage of the population uses the internet – a whopping 80.6 per cent, according to IWS.
"The Australian online population has now reached maturity in terms of the number of people online and their
experience using the internet," Mr Higginson said. "Despite this fact, the rate of internet participation, Australia-
wide, increased notably for the first time in several years," he said, adding that the latest Nielsen statistics
showed it had jumped 6 percentage points to 86 per cent. However, even experts aren't keen to guess when
every person in the world will be online. "It's too hard to tell,"
 Page 3


The type of getaway you fancy may depend on
your star sign!
                                                         Adventurous Aquarians tend to travel to exotic
                                                         destinations such as Thailand and Hawaii. Source: The
                                                         Sunday Telegraph

                                                         WE all love to go on holiday, but the type of
                                                         getaway you fancy may be written in the stars,
                                                         according to Jetstar. The airline, after looking at the
                                                         travel habits of almost 2000 of its customers over six
                                                         months, said it found that travel choices were strongly
                                                         influenced by the horoscope.

                                                       Aries travellers, who astrologers say tend to be
                                                       dynamic types, were most likely to holiday in long-haul
                                                       destinations such as Hawaii. The apparently more
cautious Virgos, on the other hand, preferred to stick closer to home: a third of their bookings were for flights
to the Gold Coast.

Libras, said to be free-spirited, tended to buy tickets at the last minute, while the apparently cool-headed
Scorpios were most likely to take advantage of sales and special deals.

David Koczkar, executive manager commercial at Jetstar, said he was taken aback by the results. "It's
uncanny. I was a little cynical ... to see how star signs could actually influence people's travel choices, but the
proof is in the stats," he said.

Geminis, reputed to be restless, spent the most on international travel, forking out 20 per cent more than any
other star sign, Jetstar said.

Cancerians, meanwhile, liked to hunt down the best deals, booking a wide variety of destinations from Cairns
to Singapore.

Taureans (unpretentious) and Sagittarians (fun-loving) were mad about cheap and cheerful Bali, Leos
(creative) hanker for culture-rich cities such as Melbourne, and Aquarians (adventurous) favoured the exotic,
such as Bangkok.

Astrologer Shauna Crowley, of Camberwell, said: "I'm pretty pleased someone has done such a study. I think
it's on the ball." Terry Kelly, president of Victorian Sceptics, said he was suspicious. "In any scientific research,
there's never been any link established with star signs being a predictor of personality or outcomes," he said.

Whatever your holiday choice is, next time we meet let me know if the study was reflective of your choice.
Above all enjoy your next holiday, wherever that may be!


 Hobbies
                                      Did you know? : About 2.1 million people in Australia were involved in
                                      art and craft only as a hobby, during a 12-month period. A further
                                      356,900 people were involved in writing as a hobby only, and 265,000
                                      people had a musical hobby only. This information was collected during
                                      a 2007 survey by the Australian Bureau of Statistics on hobby activities
                                      for art and craft, writing and music. Hobbies were defined as activities
                                      undertaken solely for a person’s own use or for the use of their family or
                                      friends. In addition to this, around 2 million Australians work in arts and
                                      crafts; 606,500 in writing; and 335,100 in music. These figures include a
number of people who both work in these industries and enjoy them as hobbies. But the top hobby in Australia
is: Recreational Fishing - without any doubt the most practised leisure activity in Australia. Source :Australian
Bureau of Statistics, Work in Selected Culture and Leisure Activities, April 2007 (cat. no. 6281.0).
Page 4

Thank You.......
A note to say thank you for your business and some helpful
                                                                                                         Helping you achieve
hints to help you explain how we as finance brokers can help
your friends, relatives etc, get their finances in order and find
                                                                                                          your lifestyle goals
the best deal to match their current financial arrangements.

If they are serious about finding a professional to help them with
their finances, particularly if they are looking to borrow money,
then finding a broker that is reputable, experienced and well
connected is the key.

One thing when comparing other brokers to us, is that we do
not charge. We are paid on a commission basis by lenders and
providers on a per transaction basis, so as a result both you
and your referrals do not need to pay any brokerage fees.

But why use a broker in the first place? Well you know the
answer to that - because we can save time and money - and we
all want to do that dont we!

As finance brokers we know a lot about the products that are
available in the marketplace.                                                                          The Moneywise Group
                                                                                                       P.O. Box 1074,
This means that we can save time and hassle of having to do                                            Epping NSW 1710
the research - after all we have it all at our fingertips.                                             PH: 02 9868 4193
                                                                                                       FAX: 02 9868 4357
If your friends & relatives are prepared to take the time to share
the details of their current financial situation with us, we will be                                   mike@themoneywisegroup.com.au
able to not only find them a product, but find one that meets                                          www.themoneywisegroup.com.au
their financial and lifestyle needs.

For your opportunity to enter the Newsletter competition, call us                                      Member of:
today or visit our web site.

Thank you again for your valued business.

Regards,




                                                                                                    If you have received this Newsletter via the
                                                                                                    mail and would prefer to receive it via email,
                                                                                                    please email us:
                                                                                                           mike@themoneywisegroup.com.au


WIN an Overnight Stay and Show package in your Capital City to the value of up to $500.
For full details of prize contents, please go to: www.nationalbrokersgroup.com.au/prizeInfo.htm
How to Enter:
Refer a friend, family member or acquaintance to:
Receive a copy of this Newsletter and receive one entry per referral. Make an appointment with someone from our office and receive one entry. Refer a friend, family
member or acquaintance for a consultation with someone from our office and receive one entry per referral. Note: for full details of the terms and conditions of this
competition, please go to www.nationalbrokersgroup.com.au/termsandconditions.pdf
Authorised under NSW LTPS/09/00882, ACT TP 09/00357
Conditions:
1. All travel is subject to availability at all times and maybe dependent on specific room category availability with accommodation partner. Travel must be completed by the
28 February 2011. Blocked out for travel periods will apply including but not limited to Easter Long Weekend, Christmas School Holiday period and during special event
periods. All bookings and documentation regarding the prize must be made via Free-2-Travel Holidays Pty Ltd or their agents. Redeeming the prize is conditional on
acceptance of the terms and conditions of travel as detailed by Free-2-Travel Holidays Pty Ltd in accordance with normal travel practices. No portion of the prize is
redeemable for cash. The prize is not refundable or transferable. In the event the winner is under the age of 18 years, they must be accompanied by a parent/guardian.
Winner is responsible for any amendment fees issued by suppliers once booking is confirmed and ticketed. Additional spending money, meals (other than those included),
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are the responsibility of the prize winner and his/her nominated.
2. Staff & Members of Vow Financial Pty Ltd are not permitted to enter this competition.



DISCLAIMER: This newsletter is intended to provide general news and information only. Readers should rely on their own enquiries before making any decisions for their
own interests. Please do not rely on any part of this newsletter as a substitute for specific legal or financial advice.

				
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