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Monthly Archives: September 2017

Mortgage Guidelines

The following list is a brief review of acceptable sources for the down payment on a mortgage.

• Cash and Unsecured Debt – Any deposits that cannot be documented, originated from cash, or borrowed on unsecured debt, such as: credit cards or personal loans cannot be used towards the purchase of a house.

• Checking and Savings Accounts – Your lender will require and review your last two months checking and savings account statements. If there are any large deposits made on these statements, you will be required to document the source of these funds. Acceptable large deposits include, but are not limited to: paychecks, reimbursements, tax refunds, sale or liquidation of asset accounts, and transfer of funds from one account to another. These large deposits will require a thorough paper trail to document the source of the funds. Unacceptable sources of large deposits include: cash, unsecured loans, and credit card withdrawals.

• Retirement Accounts – If you are using funds from a 401(k) or retirement account as part of your down payment, you will be required to document the withdrawal from the account(s) as well as the deposit into your checking or savings account(s).

• Gifts – Gift funds are allowed on some loan types depending on your credit score. Typically, gifts are only acceptable if they are from a family member. They require a fully completed gift letter that shows the relationship of the donor. The gift letter should also include their contact information and the amount of the gift. The person gifting the monies will have to show their most recent bank statement documenting the withdrawal of the gift funds. In addition, the lender will require a copy of the gift check and a printout of your bank statement showing the deposit and new balance.

• Down Payment Assistance – There are many sources for down payment assistance. Prior to entering into a purchase agreement, it is important to discuss your options with your lender to make sure that you qualify for down payment assistance based on your income and your credit scores.

SMSF Property Investment

Strict rules, restrictions and limitations apply to self-managed super funds and buying property using your superannuation.

Make sure to become familiar with the rules as imposed on trustees by the ATO. As an SMSF trustee some of your obligations include: developing, implementing and reviewing the fund’s investment strategy, considering the insurance needs of all fund members, as well as several ongoing compliance and administrative obligations which involves; appointing an SMSF auditor, lodging the SMSF’s annual returns, valuing the fund’s assets, recording and keeping accurate tax and super records and more.

Setting up and managing your SMSF will incur costs both in time and money. Because individual needs, goals and requirements vary the costs involved will differ.

Make sure you’re able to make sufficient contributions to fund your SMSF.

This is where seeking advice from a licensed financial adviser, before diving into the world of property investment, will pay off. Your financial adviser should provide you with the hard data to show whether you can afford to invest in property inside super and potential outcomes.

Choose the right property.

The goal of buying property using your superannuation is to invest in a property that will pay off handsomely to financially benefit your retirement. Make the right choices. Find properties that have the potential to increase in value; get properties that will be sold or leased fast.

Get financial advice and guidance.

Finally, seek out SMSF professionals who can help you make informed decisions and guide you through the whole process. Your property investments through self-managed super funds will deliver more favourable results when you have help every step of the way.

In order to ascertain whether this super fund is right for your specific needs, you have to consider a few things.

First, you need to consider whether having direct control and an understanding of where your superannuation is invested is right for you. An SMSF requires your active interest and participation in setting up and maintaining your super fund.

Effectively Selling Home

1. Strategy: The finest representation, requires a clear – cut, focused, meaningful, relevant strategy, based on a number of relevant factors, etc. The process must begin, with a discussion between agent and client, and agreeing to proceeding, on the same page, focused on the best way, to market a specific property, in order to achieve one’s needs, and objectives.

2. Pricing: Creating the best, initial listing price, means doing so, not based on emotion, and/ or pie – in – the – sky, wishing, hoping, greed, or unrealistic expectations. Quality agents will discuss pricing strategies, and which, might make the most sense, in the specific market, local area, and time. A meaningful rule – of – thumb, should be, to price a house, right, from the start!

3. Marketing; same page: Successfully marketing and selling a specific home, requires agent and client, to be on the same page, and commit to their agreed – upon, strategy. Homeowners must do all they can, to make their houses, readily available, so the most, qualified, potential buyers, are able to view it. When you get many views, you optimize your marketing efforts and possibilities! Homeowners should interview potential agents, and have a thorough discussion on how, a particular agent, might market the house, and the reasons!

4. Competitive; comparables: Remember, houses are not sold in a vacuum! There are generally several houses, for sale, in your area, and, you will, get your best possible results, when you are competitive, and make your home, stand – out, from the pack, in a positive way! Don’t guess about listing price, but examine and consider comparable properties, so you position your specific home, where, you’ll get the best results!

Effectively Marketing A Home

1. Price it right, from the start: One of the major obstacles to selling a house, is generally, the listing (or asking) price. This effort should not be based on either ignorance or greed, or haphazard, but, rather, should be based on the guidance of the qualified agent, you hire. Using, what is generally referred to as the C.M.A. (Competitive Market Analysis), you enhance your ability, to price the house, most effectively. This makes sense, because, historically, the best offers, come within the first few weeks, after a house is listed on the market, and, therefore, attracting, as many qualified buyers, in the appropriate price range, as possible, will best realize the objective, of fetching the best available offer.

2. Coordination between agent and homeowner: The homeowner, and the agent, he hires, must be, on the same page, to achieve the best results. Before hiring an agent, homeowners should interview several agents, discuss philosophies, perspectives, and marketing system, and agree, to a well – coordinated, team – based, effort!

3. Determine and address curb appeal: It’s often challenging for a homeowner to objectively look at, and evaluate, his own home, for many reasons, but, perhaps, most essentially, the emotional factors! Discuss any and all factors which might have an impact on the curb appeal, and effectively address these, proactively!

4. Consider if staging is needed: Since there is a cost, to staging a house, have a complete discussion, to determine if it makes sense, in the marketing of your property. Factors should include: condition of existing furniture (including size, etc); unusual room size and/ or dimensions; esthetic considerations; etc.

5. Showings; open houses; easy to show: If you want to get the best offers, commit to making the house readily available, and easy to show! Potential home buyers may need to look, at times, which may not always be, the most convenient, to you, but if you really want to sell, you should make that commitment! Discuss showings – strategy, use of open houses, and a thorough discussion, on philosophies and strategies!