Finance Consider lenders mortgage insurance premium costs at other banks before deciding on a financier. All banks have different premiums. Will A Will is an in important legal document which will ensure your assets are passed on according to your wishes. In the absence of a valid Will, your assets will be passed according to the rigid laws of Intestacy – you will have no say in the matter and the distribution of your estate may not accord with your wishes. Don’t take any chances; a Will can be drawn up quickly. Enduring Power of Attorney An EPA authorises another person to act on your behalf in your financial and health affairs if you are unable to act for yourself. The benefit is that you get to choose who you want as attorney, rather than leaving matters to chance. Choose someone you absolutely trust and who is capable of looking after your affairs. Advance Health Directive An Advance Health Directive is a document which allows you to instruct decisions on your future health care should you be unable to at the time. The document is valid during a period of lost capacity. Finance Choose someone you absolutely trust and who is capable of looking after your affairs. *Advice provided by financial adviser Peter Cooper from Cooper Financial Connections. Surveying Consider a re-peg of the property by a surveyor. Boundary pegs are often moved and you want to avoid expensive legal stoushes with neighbours. Always in older areas have it re-pegged. In newer estates people move the pegs too. As a general rule, engage the original surveyor, it could be the best money you spend. If you are investing, consider using a quantity surveyor for a report. In apartments or units, TV aerials etc are tax deductable to each owner and there a general common areas where responsibility is shared. Body corporate Consider sighting body corporate meeting minutes to get a handle on various administration funds to cover costs such as roof repairs, landscaping, concrete cancer and any other maintenance surprises that may arise. It’s also a good way to get some background on the owners. Rent increases Legislation protecting both the landlord and tenants means that rent increases can be negotiated and need to be reasonable. The Australian Government social welfare policies means that residential property investors can still increase rents where they rent to low income earners because rental assistance through Centrelink is based on market rates. Liquidity Remember that if funds are needed in the shortterm, property is not an asset that you can quickly liquidate or just sell a small portion. Interest rates Interest rates play a significant part of the costs of owning a property. When interest rates rise, investors need to be able to bear the brunt of the increased payments. Consider advice around fixing a part of the loan and understand the risks associated with doing so. Negative gearing If a rental property is negatively geared then the investor needs to find the difference each month between the income and the expenses. Many brochures show the annual result - not the monthly cashflow required. pm Pindara M 112 agazine Summer | 2014/15
Pindara Private Hospital Magazine - Issue Three
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