CHOICESISSUE 2, 2018

CHOICES

in this issue

• Mortgage repayments – ten easy ways to get ahead and stay ahead

• Increasing your house value

• Bridging loan

• Would you buy property for your kids or grandkids?

• Your superannuation – bringing it all together

The best compliment you can give us is to refer a friend

Do you know someone who's thinking about getting a new home, car or personal loan? If you’ve been happy with our service, please pass on our contact details. We’d love to help!

Why choose Mortgage Choice?

We care about helping Australians afford to live the life they want to live. Did you know Mortgage Choice can help you with more than your home, car and personal loan needs?

If you’re after insurance or want some direction with financial planning, our experts are here to help. We can even help you with the financial needs of your business.

At Mortgage Choice, we believe better choices lead to a better life.

Contact us today to find out more.

talk to us today

Mortgage Choice Limited ACN 009 161 979. Australian Credit Licence 382869. Mortgage Choice Financial Planning Pty Limited ACN 158 645 624, AFSL 422854.

7555.fairchild@mortgagechoice.com.augageChoice.com.au/colin.fairchild

2/14 Newmarket Road, Windsor, QLD 4030

Colin Fairchild

07 3262 colinMort

309335

News from...

The information provided in Choices is for general education purposes only and does not constitute specialist advice.

Mortgage Choice Limited ACN 009 161 979. Australian Credit Licence 382869. Mortgage Choice Financial Planning Pty Limited ACN 158 645 624, AFSL 422854.

Paying off your home loan sooner is an important goal, and we explain how easily it can be done (with valuable savings in the process) in our feature article, “Ten easy ways to get ahead and stay ahead”.

While the property market has cooled in many parts of Australia, it’s possible to add value to your home with carefully chosen improvements. Take a look at our article, “Increasing your house value” to make the most of your home improvements on a budget.

We bring you a wealth of other news too:

• Bridging loans: are they the right solution if you buy before you sell?

• Would you buy property for your kids or grandkids? Plenty of Australians are – but is it a sensible decision?

• Your super: bringing it all together – does combining all of your super accounts together make sense?

• Earning on the side: is it really worth it? We all like to think extra income would make life easier but growing your pay packet can bring a fresh raft of challenges.

Again we bring you the latest property market insights. It’s the big picture on what you need to know about today’s market.

If you would like more information or you would like to provide feedback on any of the articles you read in this edition of CHOICES, please let us know. We value your feedback.

Colin Fairchild

Colin Fairchild

2/14 Newmarket Road, Windsor, QLD 4030

07 3262 7555colin.fairchild@mortgagechoice.com.auMortgageChoice.com.au/colin.fairchild

News from...

Mortgage Choice Limited ACN 009 161 979. Australian Credit Licence 382869. Mortgage Choice Financial Planning Pty Limited ACN 158 645 624, AFSL 422854.

The information provided in Choices is for general education purposes only and does not constitute specialist advice.

Mortgage Choice Calculators Use our suite of popular mortgage & home loan calculators to work out your borrowing capacity, home loan repayments, stamp duty, savings targets and more.

Borrowing powerCalculate your borrowing power based on your salary and financial commitments.mortgagechoice.com.au/how-much-can-i-borrow

Achieve savings targetFind out how much you need to save weekly, fortnightly or monthly to achieve your savings target.mortgagechoice.com.au/achieve-savings-target-calculator

Home loan repaymentsWork out your minimum monthly home loan repayments. mortgagechoice.com.au/repayments-calculator

MONTHLY

How long to repay?Work out how long it'll take to repay your home loan.mortgagechoice.com.au/how-long-to-repay

Compare loansCompare home loans from different lenders based on interest rates, loan terms, fees and more. mortgagechoice.com.au/compare-loans

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How much do you need to retire?Calculate how much money you'll have to spend in retirement.mortgagechoice.com.au/retirement-income-calculator

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3

5 Consider an offset accountA home loan offset is an account linked to your mortgage. The balance of this linked account is deducted from your home loan when loan interest is calculated. It’s a smart way to use your spare cash to get ahead with your mortgage.

6 Harness the benefits of a split loanIf you’re keen to take advantage of today’s low interest rates but you’re not comfortable fixing the full balance of your loan, a split loan can provide the best of both worlds. It means being able to lock part of your loan into a low rate while keeping the balance on a variable.

7 Bundle your loan into a packageThink about bundling your home insurance, credit card or bank account with the same lender. You can typically save on a variety of fees, and, most importantly, enjoy a lasting discount on your home loan interest rate.

8 Stay on top of money mattersA missed bill, an overdrawn account and even falling behind on your rent can leave a few dents in your credit score.

Aim to stay on top of money matters to protect your financial reputation and avoid the cost of unnecessary fees and late payment penalties.

9 Go easy on the nice-but-not-essentialsMoney saved by sidestepping unnecessary buys can be used to pay down your home loan sooner. Think about what you really need, identifying non-essential purchases and embracing ways to save.

10 Speak to your local Mortgage Choice broker Your local Mortgage Choice broker knows the market, knows which lenders will work with your situation, and which loans offer the right rate and features for your circumstances.

We all want to be mortgage-free sooner. Talk to your local Mortgage Choice broker today for more strategies that can see you enjoy mortgage freedom ahead of time.

Mortgage repayments – ten easy ways to get ahead and stay aheadPaying off your home loan ahead of schedule can slash thousands of dollars off your long term interest bill. Take a look to see how you can save – and become mortgage-free faster.

1 Make repayments more frequentlyInstead of paying monthly, try paying half your regular repayment each fortnight. There are 26 fortnights in a year, so you’ll end up paying an extra month’s repayment without feeling the pinch.

2 Add a bit extra to your repaymentsEven small additional repayments can have a big impact over time. That's because additional repayments come straight off your loan balance and reduce the interest payable on that loan balance.

3 Tip lump sum windfalls into your home loanAlmost all of us receive lump sums of cash at some stage – usually a work bonus or a tax refund. Deposit this money into your home loan and it will come straight off the principal.

4 Tap into redraw A redraw facility lets you withdraw cash from your home loan if it’s needed in an emergency. This makes it reassuring that you can add any spare funds to your loan to help pay it off sooner, and still have access to the cash if it’s needed.

With official interest rates at historic lows, it makes sense to see whether you could save on your loan. Get in touch with your local Mortgage Choice broker for a free

home loan health check -

MortgageChoice.com.au/healthcheck

4

5 Consider an offset accountA home loan offset is an account linked to your mortgage. The balance of this linked account is deducted from your home loan when loan interest is calculated. It’s a smart way to use your spare cash to get ahead with your mortgage.

6 Harness the benefits of a split loanIf you’re keen to take advantage of today’s low interest rates but you’re not comfortable fixing the full balance of your loan, a split loan can provide the best of both worlds. It means being able to lock part of your loan into a low rate while keeping the balance on a variable.

7 Bundle your loan into a packageThink about bundling your home insurance, credit card or bank account with the same lender. You can typically save on a variety of fees, and, most importantly, enjoy a lasting discount on your home loan interest rate.

8 Stay on top of money mattersA missed bill, an overdrawn account and even falling behind on your rent can leave a few dents in your credit score.

Aim to stay on top of money matters to protect your financial reputation and avoid the cost of unnecessary fees and late payment penalties.

9 Go easy on the nice-but-not-essentialsMoney saved by sidestepping unnecessary buys can be used to pay down your home loan sooner. Think about what you really need, identifying non-essential purchases and embracing ways to save.

10 Speak to your local Mortgage Choice broker Your local Mortgage Choice broker knows the market, knows which lenders will work with your situation, and which loans offer the right rate and features for your circumstances.

We all want to be mortgage-free sooner. Talk to your local Mortgage Choice broker today for more strategies that can see you enjoy mortgage freedom ahead of time.

Mortgage repayments – ten easy ways to get ahead and stay aheadPaying off your home loan ahead of schedule can slash thousands of dollars off your long term interest bill. Take a look to see how you can save – and become mortgage-free faster.

1 Make repayments more frequentlyInstead of paying monthly, try paying half your regular repayment each fortnight. There are 26 fortnights in a year, so you’ll end up paying an extra month’s repayment without feeling the pinch.

2 Add a bit extra to your repaymentsEven small additional repayments can have a big impact over time. That's because additional repayments come straight off your loan balance and reduce the interest payable on that loan balance.

3 Tip lump sum windfalls into your home loanAlmost all of us receive lump sums of cash at some stage – usually a work bonus or a tax refund. Deposit this money into your home loan and it will come straight off the principal.

4 Tap into redraw A redraw facility lets you withdraw cash from your home loan if it’s needed in an emergency. This makes it reassuring that you can add any spare funds to your loan to help pay it off sooner, and still have access to the cash if it’s needed.

With official interest rates at historic lows, it makes sense to see whether you could save on your loan. Get in touch with your local Mortgage Choice broker for a free

home loan health check -

MortgageChoice.com.au/healthcheck

5

Increasing your house valueOne of the joys of home ownership is the ability to improve and add value to your place even if the market is going through a slow patch.

Long before you start thumbing through colour swatches or paint charts, it pays to understand why you are renovating. Whatever your strategy, five factors should be addressed in your renovation plans.

What does the market want?A golden rule of renovating is that it’s not just about you. Always bear in mind what would appeal to buyers. Think about the nature of your street and suburb. Is it dominated by families, who may be interested in a 3 or 4 bedroom home with extensive living areas? Or does the location appeal more to couples or even investors, who may be looking for a low maintenance property?

One of the best ways to be sure your proposed improvements appeal to a broad cross-section of buyers is to speak with local real estate agents. They can explain what’s in demand in the area, and what will turn buyers off.

Which renovations will pay a tidy return?A big hazard of renovating is overcapitalising. It can occur when the cost of the project exceeds the value it adds to your home.

But it’s not just about how much the property is improved. It’s also a case of knowing which improvements add real value.

The value you add also hinges on the cost of renovations. A major structural addition such as a second storey can be expensive, often calling for council development approval and possibly an architect. The greater the cost, the easier it can be to overcapitalise – and that’s critical if you’re renovating to sell.

Simple renovations, particularly cosmetic improvements like replacing worn carpets or installing new light fittings, can often be completed on a tight budget. Yet they can add instant appeal and value to your home without the headache of a major project.

Is the G-factor an option? One renovation you may be considering is the addition of a granny flat. It’s a growing trend as the combination of housing affordability, our ageing population and increasing multiculturalism fuels multi-generation living2.

But will a granny flat add value? Since 2013, changes in planning laws have made it legal to publicly rent out granny flats in a number of cities. So it can be a way to earn additional income, which may appeal to some home buyers.

However, granny flats can also be surprisingly multi-purpose, acting as a home office, guest accommodation, teen retreat, or simply providing additional storage – all of which can add value to your home.

The downside is that a quality granny flat can cost upwards of $100,0003. It’s a major outlay, and one you need to be sure will be reflected in an uptick in your home’s value. It all comes back to speaking with local real estate agents to gauge whether it’s a good idea for your location.

Are you able to add plenty of “wow” for not much cash?If your renovation is pitched largely at boosting your home’s value, it can be worth sticking to improvements that deliver plenty of bang for your buck.

Money spent on rewiring for instance isn’t visually obvious. But retiling, polishing floorboards, a fresh coat of paint or new carpets can instantly lift the look of your home. So can other projects like adding built-in robes to add extra storage space. A garden makeover can create instant curb appeal.

How you will fund the improvementsDepending on your financial position, you may be able to use home equity to cover the cost of works. Or you could use a construction loan that lets you draw on funds as they’re needed when various stages of the project are complete. It’s especially useful for large-scale renovations, as you pay interest only on the part of the loan drawn down.

One of the best ways to explore your options is by speaking with your local Mortgage Choice broker, who can walk you through the different strategies available. That way, you can be sure your finance choice fits your budget just as well as the renovations suit your home.1 https://www.finder.com.au/property-value-indicator-statistics2 McGrath Report 2018 3 https://www.finder.com.au/investing-in-a-granny-flat

Research shows 65% of Australians will pay extra for air

conditioning, 60% for a carport or garage and 33% are happy

to pay more for a home with solar panels. But fewer than one

in five buyers will pay more for a swimming pool1.

6

Increasing your house valueOne of the joys of home ownership is the ability to improve and add value to your place even if the market is going through a slow patch.

Long before you start thumbing through colour swatches or paint charts, it pays to understand why you are renovating. Whatever your strategy, five factors should be addressed in your renovation plans.

What does the market want?A golden rule of renovating is that it’s not just about you. Always bear in mind what would appeal to buyers. Think about the nature of your street and suburb. Is it dominated by families, who may be interested in a 3 or 4 bedroom home with extensive living areas? Or does the location appeal more to couples or even investors, who may be looking for a low maintenance property?

One of the best ways to be sure your proposed improvements appeal to a broad cross-section of buyers is to speak with local real estate agents. They can explain what’s in demand in the area, and what will turn buyers off.

Which renovations will pay a tidy return?A big hazard of renovating is overcapitalising. It can occur when the cost of the project exceeds the value it adds to your home.

But it’s not just about how much the property is improved. It’s also a case of knowing which improvements add real value.

The value you add also hinges on the cost of renovations. A major structural addition such as a second storey can be expensive, often calling for council development approval and possibly an architect. The greater the cost, the easier it can be to overcapitalise – and that’s critical if you’re renovating to sell.

Simple renovations, particularly cosmetic improvements like replacing worn carpets or installing new light fittings, can often be completed on a tight budget. Yet they can add instant appeal and value to your home without the headache of a major project.

Is the G-factor an option? One renovation you may be considering is the addition of a granny flat. It’s a growing trend as the combination of housing affordability, our ageing population and increasing multiculturalism fuels multi-generation living2.

But will a granny flat add value? Since 2013, changes in planning laws have made it legal to publicly rent out granny flats in a number of cities. So it can be a way to earn additional income, which may appeal to some home buyers.

However, granny flats can also be surprisingly multi-purpose, acting as a home office, guest accommodation, teen retreat, or simply providing additional storage – all of which can add value to your home.

The downside is that a quality granny flat can cost upwards of $100,0003. It’s a major outlay, and one you need to be sure will be reflected in an uptick in your home’s value. It all comes back to speaking with local real estate agents to gauge whether it’s a good idea for your location.

Are you able to add plenty of “wow” for not much cash?If your renovation is pitched largely at boosting your home’s value, it can be worth sticking to improvements that deliver plenty of bang for your buck.

Money spent on rewiring for instance isn’t visually obvious. But retiling, polishing floorboards, a fresh coat of paint or new carpets can instantly lift the look of your home. So can other projects like adding built-in robes to add extra storage space. A garden makeover can create instant curb appeal.

How you will fund the improvementsDepending on your financial position, you may be able to use home equity to cover the cost of works. Or you could use a construction loan that lets you draw on funds as they’re needed when various stages of the project are complete. It’s especially useful for large-scale renovations, as you pay interest only on the part of the loan drawn down.

One of the best ways to explore your options is by speaking with your local Mortgage Choice broker, who can walk you through the different strategies available. That way, you can be sure your finance choice fits your budget just as well as the renovations suit your home.1 https://www.finder.com.au/property-value-indicator-statistics2 McGrath Report 2018 3 https://www.finder.com.au/investing-in-a-granny-flat

Research shows 65% of Australians will pay extra for air

conditioning, 60% for a carport or garage and 33% are happy

to pay more for a home with solar panels. But fewer than one

in five buyers will pay more for a swimming pool1.

7

What are the associated risks?Of course, buying a property before you sell your existing home is not without risks and bridging loans often carry a higher interest rate. Their short term nature means that if you don’t sell your property within the loan term, you will suffer financially by having to pay large amounts of interest.

What you should consider with bridging financeAs is the case with any home loan product, you should consider the interest rate, any fees and features associated with the loan. If you think you may need to consider bridging finance, it’s essential that you seek professional advice.

Your local Mortgage Choice broker will analyse your financial situation and help tailor a home loan solution for your unique needs now and into the future.

Bridging loan – how to get that new property when the old one hasn’t sold In an ideal world, the amount of time between selling your home and moving into your new one would be negligible. Unfortunately, life doesn’t always go according to plan and you may find yourself needing to buy a new home before selling your existing one.

You may already be servicing a mortgage on your current home and will need to finance the purchase of the new property. However, most buyers will need the funds from the sale of their existing home to finance the purchase or construction of their new one. How can this be managed while you’re still servicing a mortgage on your current home? A bridging loan could be an option.

What is a bridging loan?A bridging loan is a short term loan - typically 6-12 months - which covers both the existing mortgage on your current home and the costs associated with buying the next one.

If you’re looking to upgrade to a newly built home, you might benefit from this type of loan. Bridging finance will allow you to remain in your existing home until you’re ready to move into your new one.

How do they work?There are a few ways you can structure a bridging loan. It will depend on your unique financial situation, the equity in your current home and of course, the lender you choose.

One of the more common ways a bridging loan can be structured is as an additional loan on top of your existing home loan. This will cover the cost of purchasing your new home, before you sell your existing home. This means you will be paying interest on two home loans until you sell your current home.

Another way bridging finance works is through a loan using both properties as security over a designated period of time. This loan typically carries a 6-12 month term. During this period you may have to pay only the interest on the loan (i.e. no principal payments). Then, once you’ve sold your home, the proceeds from the sale will pay off part of the debt and you’ll revert to principal and interest repayments for the balance or enter a new loan arrangement.

To find out more about buying your next home, visit

MortgageChoice.com.au/home-loans/ next-home-buyers

$

$

8

What are the associated risks?Of course, buying a property before you sell your existing home is not without risks and bridging loans often carry a higher interest rate. Their short term nature means that if you don’t sell your property within the loan term, you will suffer financially by having to pay large amounts of interest.

What you should consider with bridging financeAs is the case with any home loan product, you should consider the interest rate, any fees and features associated with the loan. If you think you may need to consider bridging finance, it’s essential that you seek professional advice.

Your local Mortgage Choice broker will analyse your financial situation and help tailor a home loan solution for your unique needs now and into the future.

Bridging loan – how to get that new property when the old one hasn’t sold In an ideal world, the amount of time between selling your home and moving into your new one would be negligible. Unfortunately, life doesn’t always go according to plan and you may find yourself needing to buy a new home before selling your existing one.

You may already be servicing a mortgage on your current home and will need to finance the purchase of the new property. However, most buyers will need the funds from the sale of their existing home to finance the purchase or construction of their new one. How can this be managed while you’re still servicing a mortgage on your current home? A bridging loan could be an option.

What is a bridging loan?A bridging loan is a short term loan - typically 6-12 months - which covers both the existing mortgage on your current home and the costs associated with buying the next one.

If you’re looking to upgrade to a newly built home, you might benefit from this type of loan. Bridging finance will allow you to remain in your existing home until you’re ready to move into your new one.

How do they work?There are a few ways you can structure a bridging loan. It will depend on your unique financial situation, the equity in your current home and of course, the lender you choose.

One of the more common ways a bridging loan can be structured is as an additional loan on top of your existing home loan. This will cover the cost of purchasing your new home, before you sell your existing home. This means you will be paying interest on two home loans until you sell your current home.

Another way bridging finance works is through a loan using both properties as security over a designated period of time. This loan typically carries a 6-12 month term. During this period you may have to pay only the interest on the loan (i.e. no principal payments). Then, once you’ve sold your home, the proceeds from the sale will pay off part of the debt and you’ll revert to principal and interest repayments for the balance or enter a new loan arrangement.

To find out more about buying your next home, visit

MortgageChoice.com.au/home-loans/ next-home-buyers

$

$

9

As a guarantor, you allow the equity in your own property to be used as additional security for your loved one’s loan. However the borrower is still the one responsible for making the repayments on the mortgage.

Guarantors do not have to secure the entire loan, however. There is an option to guarantee only an agreed portion of your loved one’s home loan for a designated period of time. This means you will not be financially liable for the life of the loan.

Why would I do it?In Australia, property has proven to be a safe long-term investment strategy. A report by the Grattan Institute found that house prices have more than doubled in real terms over the past 20 years1. While going guarantor is not without risk, helping a loved one achieve their property ownership dreams, sooner rather than later, can be an incredibly rewarding experience.

What are the risks involved if I guarantee my child’s/grandchild’s loan?Going guarantor can have a lasting impact on your credit score and future borrowing power so you will want to be prepared for any and all risks. As a guarantor, you are potentially liable for the home loan. You will need to seriously consider if you are in the financial position to pay the loan in the worst case scenario, keeping in mind that if your loved one defaults, you would be legally responsible for the repayments. Not only can this have a significant impact on your own financial position, it can also have a detrimental effect on your credit score.

If you are considering guaranteeing a loved one’s loan, it’s critical you seek legal and financial advice. Our mortgage brokers can help you determine whether going guarantor is a good option for you and your loved ones and discuss which options you could consider. 1 Grattan Institute, Housing Affordability Re-imagining the Australian Dream March 2018.

Would you buy property for your kids or grandkids?High house prices across Australia’s capital cities are seeing more and more parents and grandparents helping their loved ones enter the property market.

If your children or grandchildren are struggling to save the large deposits needed to buy a home these days, you may be wondering how you can help financially support them in meeting this goal. Becoming a guarantor might seem like the right answer - but, while it might seem like a great idea to step in and help, it pays to be across all of the pros and cons involved.

Here are some of the major things to consider.

How does it work?Going ‘guarantor’ is commonly known as the act of securing the purchase of a loved one’s home using the equity in a property you own.

For most lenders, the ideal borrower is one that has saved a minimum of 20% of the purchase price of their desired property. But, for many first home buyers, this can seem like an impossible feat.

Borrowers who do not have a 20% deposit saved have a couple of avenues they can take. Other than having a family member guaranteeing their loan, they can opt to pay Lender’s Mortgage Insurance (LMI). This insurance covers the lender in the event that a borrower defaults on their loan. The downside to LMI is that it can add thousands of dollars to what is already a significant debt.

Our handy Guarantors Guide explains what a guarantor is, and

outlines the pros and cons involved. Download a copy here:

MortgageChoice.com.au/guarantors

10

As a guarantor, you allow the equity in your own property to be used as additional security for your loved one’s loan. However the borrower is still the one responsible for making the repayments on the mortgage.

Guarantors do not have to secure the entire loan, however. There is an option to guarantee only an agreed portion of your loved one’s home loan for a designated period of time. This means you will not be financially liable for the life of the loan.

Why would I do it?In Australia, property has proven to be a safe long-term investment strategy. A report by the Grattan Institute found that house prices have more than doubled in real terms over the past 20 years1. While going guarantor is not without risk, helping a loved one achieve their property ownership dreams, sooner rather than later, can be an incredibly rewarding experience.

What are the risks involved if I guarantee my child’s/grandchild’s loan?Going guarantor can have a lasting impact on your credit score and future borrowing power so you will want to be prepared for any and all risks. As a guarantor, you are potentially liable for the home loan. You will need to seriously consider if you are in the financial position to pay the loan in the worst case scenario, keeping in mind that if your loved one defaults, you would be legally responsible for the repayments. Not only can this have a significant impact on your own financial position, it can also have a detrimental effect on your credit score.

If you are considering guaranteeing a loved one’s loan, it’s critical you seek legal and financial advice. Our mortgage brokers can help you determine whether going guarantor is a good option for you and your loved ones and discuss which options you could consider. 1 Grattan Institute, Housing Affordability Re-imagining the Australian Dream March 2018.

Would you buy property for your kids or grandkids?High house prices across Australia’s capital cities are seeing more and more parents and grandparents helping their loved ones enter the property market.

If your children or grandchildren are struggling to save the large deposits needed to buy a home these days, you may be wondering how you can help financially support them in meeting this goal. Becoming a guarantor might seem like the right answer - but, while it might seem like a great idea to step in and help, it pays to be across all of the pros and cons involved.

Here are some of the major things to consider.

How does it work?Going ‘guarantor’ is commonly known as the act of securing the purchase of a loved one’s home using the equity in a property you own.

For most lenders, the ideal borrower is one that has saved a minimum of 20% of the purchase price of their desired property. But, for many first home buyers, this can seem like an impossible feat.

Borrowers who do not have a 20% deposit saved have a couple of avenues they can take. Other than having a family member guaranteeing their loan, they can opt to pay Lender’s Mortgage Insurance (LMI). This insurance covers the lender in the event that a borrower defaults on their loan. The downside to LMI is that it can add thousands of dollars to what is already a significant debt.

Our handy Guarantors Guide explains what a guarantor is, and

outlines the pros and cons involved. Download a copy here:

MortgageChoice.com.au/guarantors

11

One account may mean more in superThe easy way to keep track of your super and avoid losing money to unnecessary fees and life cover premiums is to hold all your super in a single account. It's easy enough if you're just starting out in the workforce. Simply take your super account with you when you change jobs and let your new employer know the details of the account you'd like super contributions paid into.

If you already have more than one super fund, it may make good financial sense to rollover (or consolidate) your various super balances into a single account.

What to weigh upBefore consolidating your super into a single account, it's worth taking a moment to check the features and benefits offered by your other funds. Be sure you won't miss out on any valuable perks.

Also, give careful thought to the level of insurance cover held with your other fund/s. In particular, be wary of switching funds if you have an existing medical condition – you could get knocked back on insurance for any conditions you currently have.

Finally, confirm that your employer can contribute to your chosen fund. If your job is governed by say, a workplace agreement, it may specify the fund or funds into which payments must be made by your employer.1 https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Super-statistics/Super-accounts-data/Super-accounts-data-overview

Your superannuation – bringing it all together Try this quick quiz. How many super funds do you have? Do you know what you're paying in total fund fees? How much money is coming out of your super each year in insurance premiums across multiple funds?

Chances are, like many Australians, you could have more than one super fund. The thing is, most of us stick to one personal savings account to save on fees and keep better track of our spare cash. Yet, doubling up on super funds means wasting money on unnecessary fees and insurance premiums – money that is yours for the future. That makes it worth giving your superannuation savings as much attention as your day to day savings account.

Keeping track of superOn a practical level, having more than one fund means dealing with multiple sets of super statements, as well as making it harder to have a say in how your super is invested. The big risk however is that you'll lose track of your various super accounts over the course of a working life. Already there’s a vast pool of $14 billion in lost and unclaimed super waiting to be reunited with the rightful owners1.

What many workers don't realise is that having more than one super fund can eat into the value of their nest egg.

Money wasted on unnecessary feesEach fund charges its own set of annual fees – money that's paid directly from your super savings. So having multiple funds means paying several sets of fees.

It pays to check your own situation. The Australian Tax Office recently warned “Australians with multiple superannuation accounts could be paying thousands in unnecessary fees every year.”

Are you in this boat? The Government's myGov.com.au portal makes it easy to check how many accounts you have and where they are all located. Simply set up a link to your Australian Tax Office account and go the ‘Super' tab. Here you'll find a list of all of your accounts, as well as your current balances.

But it's not just about feesLife insurance is an automatic feature of many super funds, and if you have more than one fund, it's likely you're also paying several sets of life cover premiums. It's a cost that can steadily eat away at your super savings.

Want to learn more about how super works? Watch

our video here:

https://youtu.be/9Dj8QTd8jDg

12

One account may mean more in superThe easy way to keep track of your super and avoid losing money to unnecessary fees and life cover premiums is to hold all your super in a single account. It's easy enough if you're just starting out in the workforce. Simply take your super account with you when you change jobs and let your new employer know the details of the account you'd like super contributions paid into.

If you already have more than one super fund, it may make good financial sense to rollover (or consolidate) your various super balances into a single account.

What to weigh upBefore consolidating your super into a single account, it's worth taking a moment to check the features and benefits offered by your other funds. Be sure you won't miss out on any valuable perks.

Also, give careful thought to the level of insurance cover held with your other fund/s. In particular, be wary of switching funds if you have an existing medical condition – you could get knocked back on insurance for any conditions you currently have.

Finally, confirm that your employer can contribute to your chosen fund. If your job is governed by say, a workplace agreement, it may specify the fund or funds into which payments must be made by your employer.1 https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Super-statistics/Super-accounts-data/Super-accounts-data-overview

Your superannuation – bringing it all together Try this quick quiz. How many super funds do you have? Do you know what you're paying in total fund fees? How much money is coming out of your super each year in insurance premiums across multiple funds?

Chances are, like many Australians, you could have more than one super fund. The thing is, most of us stick to one personal savings account to save on fees and keep better track of our spare cash. Yet, doubling up on super funds means wasting money on unnecessary fees and insurance premiums – money that is yours for the future. That makes it worth giving your superannuation savings as much attention as your day to day savings account.

Keeping track of superOn a practical level, having more than one fund means dealing with multiple sets of super statements, as well as making it harder to have a say in how your super is invested. The big risk however is that you'll lose track of your various super accounts over the course of a working life. Already there’s a vast pool of $14 billion in lost and unclaimed super waiting to be reunited with the rightful owners1.

What many workers don't realise is that having more than one super fund can eat into the value of their nest egg.

Money wasted on unnecessary feesEach fund charges its own set of annual fees – money that's paid directly from your super savings. So having multiple funds means paying several sets of fees.

It pays to check your own situation. The Australian Tax Office recently warned “Australians with multiple superannuation accounts could be paying thousands in unnecessary fees every year.”

Are you in this boat? The Government's myGov.com.au portal makes it easy to check how many accounts you have and where they are all located. Simply set up a link to your Australian Tax Office account and go the ‘Super' tab. Here you'll find a list of all of your accounts, as well as your current balances.

But it's not just about feesLife insurance is an automatic feature of many super funds, and if you have more than one fund, it's likely you're also paying several sets of life cover premiums. It's a cost that can steadily eat away at your super savings.

Want to learn more about how super works? Watch

our video here:

https://youtu.be/9Dj8QTd8jDg

13

Housing market update Australian dwelling values held firm in March with regional values recording a 0.4% rise, helping to offset a 0.2% fall across the combined capital city markets.

The softening trend in the Australian housing market is largely due to weaker conditions in Sydney, however, most other capitals are also recording subtle falls. Dwelling values were steady over the quarter in Brisbane and have continued their strong run of growth across Hobart, up 3.4%.

Across the country, the strongest performing regional area is now Tasmania, where dwelling values outside of Hobart are 5.4% higher over the past twelve months. The area is benefitting from an influx of capital from Sydney and Melbourne, as well as higher interstate migration rates as new residents take advantage of the low housing prices and improving economic conditions.

Furthermore, the March results show the unit sector is now consistently outperforming the detached housing market - a trend which has been evident since mid-2017.

In contrast, houses recorded stronger performance to units outside of Sydney and Melbourne. Every other capital city has seen the detached housing sector outperform the unit market over the past twelve months.

While capital city values are still trending lower, the rate of decline is now easing. Overall, the Australian housing market is currently showing every sign of recording a soft landing after the national dwelling values peaked in September last year.Source: Tim Lawless, Head of Research, CoreLogic RP Data

Earning on the side – is it really worth it?For most of us, the thought of earning additional income can be very appealing but there are downsides to boosting your income with a second job or by turning a hobby into a money spinner.

The impact of taxAny additional income you earn is likely to be taxable, and this has the potential to push you into a higher tax bracket. It may mean a lot less of what you earn actually ends up in your hip pocket.

Be careful when it comes to making money from hobbies as the tax office may regard what you are doing as running a business. That can mean paying tax on your profits.

How will your day job be affected?Earning a second source of income will call for an input of your time and energy. This could leave you thinly stretched, and if it impacts your ability to perform well in your main job, your career could be jeopardised.

Check your employment contract too. It could prohibit you from working in the same field.

Additional income may not be insuredIf you have income protection insurance, it’s unlikely that the additional income you’re earning will be included in the policy. This is critical if you gear your spending to include your extra income or take on new financial commitments based on earning a higher income.

Will your lifestyle suffer?Speak with your family, be sure everyone is behind you, and keep a close eye on whether your relationships are suffering as a result of time spent making extra money.

For expert advice on whether the benefits of earning additional income will really stack up for you, make an appointment to speak to your local Mortgage Choice Financial Adviser.

Are you trying to save but not reaching your savings goal

as quickly as you would like? Use our saving tool to estimate

how much you are spending every year on lit tle items

MortgageChoice.com.au/savemoney

Statistics Houses Units

Median sale price $991,000 $725,000

Change in median sale price (12 mths) 7.7% 3.6%

Change in median sale price (3 yrs) 30.4% 18.4%

Change in median sale price (5 yrs) 62.5% 43.0%

Median asking weekly rent $540 $530Source: CoreLogic RP Data Market Trends (Standard, National), April 2018 (all data is to 31 January 2018). All figures are current and based on data available at the time the report is published. Figures are indicative only and subject to revision.

S Y D N E Y H O U S I N G M AR KE T KE Y S TATI S T I C S

14

Housing market update Australian dwelling values held firm in March with regional values recording a 0.4% rise, helping to offset a 0.2% fall across the combined capital city markets.

The softening trend in the Australian housing market is largely due to weaker conditions in Sydney, however, most other capitals are also recording subtle falls. Dwelling values were steady over the quarter in Brisbane and have continued their strong run of growth across Hobart, up 3.4%.

Across the country, the strongest performing regional area is now Tasmania, where dwelling values outside of Hobart are 5.4% higher over the past twelve months. The area is benefitting from an influx of capital from Sydney and Melbourne, as well as higher interstate migration rates as new residents take advantage of the low housing prices and improving economic conditions.

Furthermore, the March results show the unit sector is now consistently outperforming the detached housing market - a trend which has been evident since mid-2017.

In contrast, houses recorded stronger performance to units outside of Sydney and Melbourne. Every other capital city has seen the detached housing sector outperform the unit market over the past twelve months.

While capital city values are still trending lower, the rate of decline is now easing. Overall, the Australian housing market is currently showing every sign of recording a soft landing after the national dwelling values peaked in September last year.Source: Tim Lawless, Head of Research, CoreLogic RP Data

Statistics Houses Units

Median sale price $530,000 $413,000

Change in median sale price (12 mths) 2.9% -1.7%

Change in median sale price (3 yrs) 10.4% -2.0%

Change in median sale price (5 yrs) 20.7% 7.3%

Median asking weekly rent $415 $380Source: CoreLogic RP Data Market Trends (Standard, National), April 2018 (all data is to 31 January 2018). All figures are current and based on data available at the time the report is published. Figures are indicative only and subject to revision.

B R I S BAN E H O U S I N G M AR KE T KE Y S TATI S T I C S