Get Answer to your Questions about Property Valuation

Property Valuation – The Meaning

A property valuation is often conducted by a qualified and certified valuer on the request of a lender/credit provider who is looking to fund the purchase of a property. The valuation can also be requested by you (if required).

Property Valuations – The Need

It is an essential part of the home loan application process and is usually performed by when lenders are in the process of financing a property. The lender/credit provider will usually use their own nominated panel or preferred licensed property valuers.

Property valuation is requested for number of reasons, such as:

• To assist in the calculation of the Loan-to-Value Ratio (LVR)

• Develop an opinion of the market value of the property

• Assess the value of land, buildings, improvements and other factors that influence the current and past value of your property (i.e. the process involves both external and internal inspection of the property)

What Information is available in Property Valuation Reports?

Property valuation reports will include the following relevant property information details:

• Executive Summary - which is a summary of the report itself showing who ordered the report and who the owner of the property is to be

• Land Details – such as dimensions and area

• Title Particulars – shows the Title volume and folio numbers and any other encumbrances registered on Title

• Topography – a description of the land and the area

• Services – what infrastructure is available e.g. water, electricity, sewerage

• Town Planning - the Zoning of the property and if the buildings conform to that zoning

• Planning Constraints – whether the property has any Council planning constraints

• Environmental – if any environmental issues are in evidence

• Location – describes where the property is in relation to CBD’s and other suburbs

• Improvements, which include:

- Dwelling Description – a brief statement of the dwelling

- Construction – describes the materials used e.g. brick and tile

- Accommodation – the number of rooms and the type of rooms within the building

- PC Items – covers the kitchen, bathrooms, laundry

- Fixtures& Features –describes such items as the air conditioning, ceiling fans and floor type, etc.

- Other Improvements – will show a swimming pool (if installed), and fencing

- Building Areas – shown in square meters the living, outdoor and garage areas

- Condition

• Photographs of Improvements – photos of the building in and outside

• Comparable Sales – shows the recent sale of other properties in the same area

• Sales Evidence - lists the address, sale price and date of sale

• Risk Analysis – shows the property risk and marker risk ratings on a scale of 1-5 with 1= low risk and 5=high risk

• Comments – Valuers overall assessment of the property

• Valuation Approach

Remember that several factors constitute the property valuation report. If you keep in mind the factors mentioned in this guidebook, it will enable you in choosing the right property.

Getting instant property finance is very important for a property buyer. Contact Singh Finance for getting affordable home loan solutions for your property. The firm’s home loan experts will help you in completing the finance procedure quickly.

The Easy Guide for understanding Capital Gains Tax

Capital Gains Tax (CGT) was introduced in Australia on 20th September 1985. The tax applies only to assets acquired on or after that date. Gains (or losses) on earlier assets called pre-CGT assets are ignored.

CGT was introduced to reduce the inconsistency between the taxing of wealth and the taxing of income. The CGT system works by including the assessable gain on the disposal of a CGT asset in the assessable income of the entity disposing of it.

What is a Capital Gains Tax (CGT)?

Put simply, Capital Gains Tax is not a separate tax; it is part of your income tax liability. CGT is the tax you pay on the difference between the amount you sell an asset for and the amount you paid for it.

Capital Gains Tax in the context of the Australian taxation system applies to the capital gain made on the disposal of an asset, except for specific exemptions (e.g. the most significant exemption is the family home).

What is a Capital Gain?

A capital gain will occur when a capital asset is sold at a higher price than it cost you. For example:

• When you sell an asset for more than what you paid for, this is referred to as a "capital gain" , and

• If you sell an asset for less than what you paid for, this is referred to as a "capital loss"

Whether you make a capital gain or not depends on the purchase price of an asset compared to its selling price.

A capital gain usually has a different meaning for the tax department, the economists and the accountant.

Is a Capital Gain Treated as Taxable Income?

Yes, Capital Gains Tax operates by having net capital gains treated as taxable income in the tax year an asset is sold or otherwise disposed of.

It is important to note, that a Net loss in a tax year cannot be offset against any income. But, the net loss can be carried forward to be deducted against any capital gains in future years.

What is a Capital Gain Discount?

If the asset is held for at 1 year and you have determined the total capital gain, the CGT discount can then be applied. The total gain on the assessable income is first discounted by:

• 50% for individuals taxpayers, or

• 33.3% for self-managed superannuation funds

Companies and other trusts are not entitled to a CGT discount.

What Assets are Liable for Capital Gains Tax?

All assets are subject to the CGT rules unless they are specifically excluded. Capital gains and losses in a given tax year are totalled into three separate asset categories according to the class of the asset. The three separate asset categories are:

Collectables: This category includes assets acquired for above $500.00 and used for personal enjoyment, such as:

• Boats

• Furniture

• Electrical equipment, etc.

Personal Use Assets: This category includes assets acquired for above $10,000 used for personal use, such as:

• Paintings

• Art

• Jewellery

• Postage Stamps

• Antiques

• Coins, etc.

All Other Assets: This category includes assets that are not categorised as collectables or personal assets, such as:

• Land

• Shares in a company

• Rights and Options

• Leases

• Units in a Unit Trust

• Goodwill

• Licences

• Convertible notes

• Your home or unit

• Foreign Currency

• Contractual rights

• Any major capital improvement made to certain land or pre-CGT asset

The existence of separate categories for collectables and personal use assets works to prevent losses from them being offset against other gains, such as from investments. This works to prevent taxpayers subsidising hobbies from their investment earnings.

What Assets are exempted from Capital Gains Tax (CGT)?

A Capital Gains Tax exemption applies to:

• An asset owned outright

• A partial interest in an asset, and

• To both tangible and intangible assets

The current Capital Gains Tax (CGT) exemptions are:

• Any asset acquired before 20th September 1985, known as a pre-CGT asset

• The house, unit, etc. which is the taxpayers main residence and up to 2 hectares of adjacent land used for domestic purposes

• Collectables acquired for up to $500.00 used for personal enjoyment

• Personal use assets acquired for up to $10,000 used for personal use

• Capital loss made from a personal use asset (i.e. any capital loss you make from a personal asset is disregarded)

• Car and other small motor vehicles, such as, motorcycles (small being a carrying capacity less than 1 tonne and less than 9 passengers)

• Compensation for an occupational injury, or for personal injury or illness of oneself or a relative

• Life insurance policies surrendered or sold by the original holder

• Winnings or losses from gambling (which are free of income tax too)

• Bonds and Notes sold at a discount (gains and losses from these come under ordinary income tax)

• Medals and decorations for bravery and valour, provided they are acquired for no cost

• Shares in a pooled development fund

• Payments under particular designated government schemes (e.g. various industry restructuring schemes)

What is a CGT Event?

A taxpayer can only make a capital gain or a capital loss if a CGT Event happens. The CGT events include:

CGT Event A1 - The disposal of a CGT asset, which covers a change of ownership (e.g. by sale or giving away) of assets such as:

• Shares

• Units in a Unit Trust

• Debt Securities

• Land and Buildings

• Works of Art, etc.

CGT Event C2 - The cancellation, surrender or similar endings of a CGT asset, which would cover:

• The redemption of units in a Unit Trust (where the units are extinguished)

• The expiry of an unexercised option, or

• The redemption and cancellation of a debenture

There are approximately 50 different CGT events and most individuals will never experience many of these events.

What happens when an Asset is owned by more than one person?

Many assets purchased can be held in the following ownership types:

Joint Tenants - When an asset is owned under a "joint tenancy" arrangement. For CGT purposes, the joint tenants are treated as tenants in common (i.e. they have equal shares in the asset). Therefore, each party has an equal share of:

• Any Capital Gain from a CGT event, or

• Any Capital Loss from a CGT event.

For example, a couple that owns a rental property as joint tenants will split the capital gain or capital loss equally when they sell the property.

Partnerships - When an asset is owned by “partners” then the partnership itself does not own the assets. Instead, each partner owns a proportion of each CGT asset. The partners use their proportion to work out their capital gain or capital loss from a CGT event affecting any asset.

Tenants in Common - Individuals who own an asset as "tenants in common" may hold unequal interests in the asset. Each owner makes a capital gain or capital loss from a CGT event in line with their interest.

For example, a couple can own a rental property as tenants in common with:

• One person having a 20% legal interest and

• The other person having 80% legal interest.

When they decide to sell a rental property (or any other CGT event occurs), they will split the resultant capital gain or capital loss between them according to their legal interest.

Why take help of a Finance Broker?

Every financial decision requires time and expertise. It is because even a small mistake can harm you terribly. So, it is wise to seek expert advice from finance brokers. Contact a professional broker who has a thorough knowledge of Capital Gains Tax (CGT). He/she will be able to guide you through your options in determining what assets can be subject to Capital Gains Tax (CGT).

So, next time you have to pay capital gains tax, do not worry. Use this informative guide and employ the services of a finance broker to pay-off your tax liabilities quickly.

Singh Finance provides complete financial solutions to Australians. The firm’s expert property finance brokers will not only provide you with updated information on Capital Gains Tax but also offer quick loans for home business. Contact now.

Good News for Doctors! Medico Home Loans are here

Doctors and medical professionals are considered very safe by Australian lenders. It is because they have the lowest delinquency rate. And, it is for this reason that many lenders are interested in approving loan applications of medicos. To attract medical practitioners and to fight competition, lenders offer huge discount and benefits on medico home loans.

If you are a medical professional and looking for a home loan, read this financing guide. It will help you in learning everything about the amazing loan package called “Medico Loans”(also known as "Medico Pack").

The Purpose of Medico Loans

A medico loan has several purposes. You can use it for:

• Residential properties purchase

• Practice premises that are converted residential houses

• Owner-occupied dwelling

• Investment property purchase

• Refinance your existing home loan

• Obtain Cash Out (Equity Release), or

• Consolidate your debts

Medico loan has so many purposes. However, keep in mind that refinancing of working capital, equipment finance and all other business related loan purposes are excluded from it.

Features of Medico Loan

Home loan for medical professionals includes special features like:

1. Confirmation and validation of 5 per cent genuine savings is not required

2. A maximum Loan to Value Ratio (LVR) of 90 percent may be approved without Lenders Mortgage Insurance (LMI).

Special Discounts

Usually, medical professional make regular payments. It is for this reason that there is less risk in medico loans. And so, lenders offer special deals and huge discounts on these home loans. Here are few discount deals that are provided to medicos:

• Discounted Interest Rates

• Discounts on Lenders Mortgage Insurance (LMI) or even no Mortgage Insurance

• Easier Loan Approval - even for the typical "hard loan proposals"

• No Set Up Cost or Application Costs

• No Valuation

• Special Interest Rate for Family Members

• Easier Cash Out (equity release policy)

Eligibility Criteria for Medico Loan

A medico loan is available if you fit into any one of the following medical professions:

• General Practitioners

• Hospital - Employed Doctors (e.g. Intern, Resident, Registrar, Staff Specialist)

• Dentists

• Veterinary Practitioners

• Pharmacists

• Surgeons

• Optometrists

• Radiologists, and

• Physiotherapist

Employment Documents

You only have to provide copies of the following:

• Your University degree or qualification, or

• Your Registration with the Medical Practitioners Board of Australia or equivalent body

So, once you prepare a file of your income and employment documents, you can visit a lender or a brokerage firm. Do remember to ask for as much discount as possible.

Singh Finance is famous for providing the best medico loan package. Contact the firm today and its expert finance brokers will start working for you. You can even get pharmacy loans from Singh Finance. So, call now and get ready to choose from a wide array of finance packages.

All the best!

Perfect Guide for getting Pharmacy Loan

Every pharmacist dreams of starting a pharmacy. And, Australian lenders are giving wings to this dream. They have made financing so simple that a recent pharmacy graduate or even an associate can start his pharmacy without any trouble.

What is the Use of Pharmacy Loans?

The main objective of pharmacy loans package is to ensure growth of your business. It can be used for several purposes. Few of them are listed here:

• Buy your start-up pharmacy practice

• Acquire another pharmacy practice

• Expand/remodel your existing pharmacy practice

• Purchase equipment for your pharmacy practice, including fit outs

• Refinance existing pharmacy loan

Eligibility Criteria for Pharmacy Loans

Pharmacy loans solutions are offered by lenders to:

• Recent graduate

• Associate, or

• A seasoned pharmacist

Understanding your Financial Situation

Buying a new or existing pharmacy premises or pharmacy equipment is not a simple task. You need to consider several aspects and then make a profitable decision. Here is the list of things that should be considered before applying for a low rate pharmacy loan:

• Business opportunities

• Your overheads and running expenses

• Amount and term of the pharmacy loan

• Structure of the loan (Fixed / Variable / Combination / Interest only content)

• Expected interest rate

• Redraws, and

• Early repayment provisions (i.e. Exit Strategy)

Importance of a Finance Broker in getting Pharmacy Loans

Every financial decision should be made after meticulous planning. Most pharmacists don’t have adequate finance knowledge. So, it is wise to work out your business plan with a qualified and experienced finance broker. You should sit down with a finance broker and:

• Look at your overall financial position

• Establish a suitable Due Diligence/Business Plan, and

• Create a Budget

A qualified finance broker will advise you and provide financial knowledge of pharmacy business. He will help you in eliminating options that are beyond your budget and save your valuable time. If you employ a brokerage firm, you won’t have to run around from lender to lender on your own. The loan experts will understand your needs and present you with a number of loan options. He will also help you in choosing the best pharmacy loan package.

Truly, having a loan specialist will make pharmacy loans simpler for you. So, next time, you want a loan for your pharmacy business; don’t forget to employ the services of a finance broker.

A pharmacist can start his pharmacy business with Singh Finance. The brokerage firm offers pre-approval on pharmacy loans as well as provides cheap finance for equipment purchase. Contact on 0424 190 908 or enquire online now and, the firm’s expert finance brokers will assist you in finding the perfect pharmacy loan solution.

Finance for Debt Consolidation – Ideal Answer to your Debt Problems

There is one loan packages that will enable you to pay off other loans without any tension. It can be availed easily and it ensures lower repayment amount. Are you interested in it?

It is called "Debt Consolidation" finance. It is an option that you can consider if you find yourself struggling to make your monthly mortgage payments and also trying to pay off of your debts at the same time. Debt Consolidation finance involves the process of refinancing your current mortgage loan and combining any or all of the following debts into one mortgage. All of these debts have their own repayment terms, interest rates, fees and charges, and differing days of the month to repay the debts:

• Short Term Personal loan

• Credit card

• Store card

• Car loan

• Leasing arrangements, and

• Other loans

Are You in this Situation?

Like many consumers you have made your life miserable and stressful by getting yourself into a situation where you have:

• A number of different loans, and

• The loans being held with a number of different lenders/credit providers

Is Debt Consolidation Finance the Right Solution?

If you are currently finding it hard to keep up with your debts and you are struggling to make ends meet, for whatever reason, it is important to act quickly. Look no further because, we can help you get your finances back on track. Here are some practical reasons why debt consolidation finance is the right solution for you:

• You will be able to avoid the stress and pain of overdrawn or over the limit credit card balances

• There will be no higher credit card interest rates anymore

• You will be able to undertake effective management of your personal and household budget

• There will be improvement in your cash flow

• You will have a lower interest rate and affordable monthly repayments

• You will make only one repayment

A Debt Consolidation Loan Example

To see how much you will save monthly is best illustrated in the following example. The example assumes that you have a mortgage loan of $300,000 and credit card with a credit limit of $12,000:

From the example illustrated above you can clearly see that:

Your will save interest by choosing a debt consolidation loan will be $91,003 and your monthly repayments will be reduced by $401 per month.

*Note -The example provided is an approximate guide only and for illustration purposes only. The results generated in the example, do not constitute an agreement to provide credit. All lending is subjected to normal lender/credit provider lending criteria.

What Action should I take for obtaining Debt Consolidation Finance?

The first step is to talk to a brokerage firm. Let the firm’s professionally qualified and expert finance brokers know that you are experiencing financial hardship. The finance brokers are committed to reducing your financial stress and getting you back on track again. Here’s how they will help you:

• They will analyse your overall financial situation and devise a budget plan for you.

• They will help you improve your cash flow and help you manage your payments.

• They will help you obtain low rate debt consolidation loan and find a solution to your debt problems.

Remember that debt consolidation loan has the potential to get you back on track. So, make a conscious decision and choose a perfect finance broker.

Singh Finance will solve all your loan troubles. Obtain fast debt consolidation loan from the brokerage firm and get ready to refinance your existing debts. Call now and ask for personal loan experts.

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