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25.01.2022 Land vs Location: Another hotly debated topic when it comes to property is whether to prioritize land over location or vice versa. Both options have their advantages so let's discuss between the two. Some of the advantages to picking land over location is because land is an asset that cannot be grown. The land that is available at the moment will be the same land that is available in 100 years. Land is a finite resource the same way there is a limited amount of gold that is i...n the earth. The more land someone posseses, the more opportunity down the line for the land to potentially be able to be subdivided, which can substantially increase the value of the land. Also due to populations increasing and people moving further away from cities, land values will increase as people move further out to live and increase the demand for the land. Location is preferred by some especially due to lifestyle. Being able to live close to work and also reduce commute time can significantly increase quality of life. Additionally properties in locations that are closer to the main cities will have higher rents due to the better schools and amenities that usually correlate highly with higher home prices. Since location in higher priced areas are limited, the price for these places can also increase at a much quicker rate. Depending on if you are looking for yield or growth or yield can help people to decide which one works best for them. Which one do you prefer property or location? #GTMFinance#Land#Location#Investment#Property#FinancialPlanning#Melbourne

25.01.2022 Principle Place of Residence(PPR): Principle Place of Residence is the residence that you reside in and call home. From a lending perspective a persons PPR is usually at a lower interest rate than the alternative of an Investment property loan. There are a lot of robust discussions on if it is better to have a home to live in that you own, or to rent yourself, or to own and rent out what you own, which is called Rentvest. All are various options that people choose to decide ...on. The reason why some people choose to live in the property they buy, is firstly there is no rent to pay. An advantage of owning a property is that with interest rates as low as they are now, many people will be paying less on their principle and interest on their home loan than if they were renting. Another advantage of owning property is that historically property ownership has been an asset class that the value of the property increases over time, and with the property bought with a loan, some of this equity can be used for projects, or materialized if the property is to be sold later in future. There is also no capital gains tax paid on selling a PPR which is another plus. A disadvantage of owning though is that it does require a substantial amount of savings for a deposit, and it will effect the flexibility of being able to move around without having to deal with tenants. This capital that is put in property also inhibits the opportunity to invest in other projects. So knowing which way to better allocate your savings is important for long term planning. Which one do you think is best for you? #Homeowner#PPR#Leverage#CapitalGains#GTMFinance#Banking#FinancialPlanning#Melbourne

22.01.2022 IRR: Ending the year on a technical note. Hopefully this will be of usefulness to some of you that read this. Firstly thank you all for following and interacting with my content, it really means a lot to me. Looking forward to bigger and greater things with you all in 2020. Now back to the topic: IRR, which stands for Internal Rate of Return. Money has a time value associated to it due to inflation. What $1000 can buy you at the start of the year will not be able to buy those... same good a year later, it will be more expensive. So to counter this dilemma investors have options where IRR calculates an interest rate that can determine how appealing an investment is based on it's current value. This calculation essentially can give the person the tools to understand if an investment is worth while or not, or also how to pick between different presented opportunities. In this era of low interest rates, i encourage you all to learn and apply these types of tools to help you reach those financial goals you set out for yourself. Always here if you have any questions. #GTM#Finance#IRR#Investments#InterestRates#TimeMoneyValue#Opportunities#FinancialPlanning

21.01.2022 The Rule of 72 states that if you divide 72 by an interest rate of return, then the number that equals to is the amount of years it would take to double the investment. For example, if you have a shares valued at $100,000 that is obtaining a return of 7%. It would take (72/7=10.28 years) for the value of the shares to be now worth $200,000. This not only highlights the value of investing, but also compound interest and wealth creation. How are your investments performing?... #GTMFinance#WealthCreation#CompoundInterest#Ruleof72#FinancialPlanning#Growth#Timing#Management#FinancialPlanningAustralia

21.01.2022 Direct Insurance: Direct life insurance policies are the insurance policies that people can obtain fairly easily and quickly. They are advertised a lot on TV and on infomercials. Some are also linked with health and car insurances. These are the Allianz, Quantas, Real Insurance to name a few. One of the disadvantages of direct Insurance is that the person insured does not have a health assessment before obtaining the policy, what this means is that when the person is looking ...to claim, this is when the insurer would start to look for any pre-existing conditions or other health assessments. When doing this evaluation at the time of claim as opposed to the time of application this leads to two main disadvantages, one being most likely undesirable claim outcomes, for the policy holder, and also higher premiums for other people who already have existing policies. When practically everyone that applies for a policy can get insured this increases the risk of the insurer. Because the more people that claim, likewise the more the insurer pays, and therefore the higher everyones premiums are. Retail insurers obtain applicants health assessment before issuing the policy, so healthy people get the best rates, people who aren't as healthy get loadings or exclusions, and people very unhealthy unfortunately are not provided with cover. All of these topics are important when considering which insurance policy to obtain especially when it is usually a long term decision. Let me know if you have any questions. #Insurance#WealthProtection#GTMFinance#DirectInsurance#FinancialAdvice#Melbourne

20.01.2022 Interest Only vs Principle & Interest: When buying a property to live in or an investment property you will have the option of structuring a loan interest only(IO), or principle and interest (P&I), both have their advantages pending on what you are looking to do. For IO the interest rate is usually higher and you can usually get this arrangement for up to 5 years. A main benefit of IO is that even with the higher interest rate, since you are not paying off any capital, this l...eaves the owner with higher cash flow to pursue other opportunities. If it is an investment there is also potential for higher tax deductions.Then for P&I, a main advantage is that you are saving on interest rates which effectively means more money is kept in your pocket. You are also paying down the capital which is helping the owner to build up equity faster. Which one is best really would depend on a persons current cash flow, and future plans. Speaking with a financial planner would help take these things in consideration. Which one do you think is best for you? #GTMFinance#FinancialPlanning#Equity#Property#Leverage#Finance#Lending#P&I#IO#Wealth#Melbourne

19.01.2022 #International#Forex#FinancialPlanning#Currency#PurchasingPower#CrossBorders#Finance#Melbourne

17.01.2022 As most people might tell you that people usually for the most circumstances don't become wealthy overnight, but over a long time of investing. As you can see in this example investor 2 invested the same amount of $5000 for an extra 20 years or 3 times as many times as investor 1 did. Though at the age of 65 investor 1 still had more in savings. Why was this? All because of the magic of compound interest. Someone who gets a solid return on their investments would have time on... their favor over someone who puts in more money, but over a shorter period of time. This is why knowing what assets, and how long you can invest in an asset has such a profound effect on reaching a long time goal or not. #GTMFinance#Wealth#CompoundInterest#Dividends#PassiveIncome#Growth#Timing#Management#FinancialPlanningAustralia

17.01.2022 Check out the GTM Finance website for latest news in the world of finance, and also to get up to date with what you can improve in your life financially today!!!

16.01.2022 # Fixed vs Variable Rates: When choosing a home loan you will have the option of picking a fixed or variable rate. A fixed rate is when the interest rate of the loan won't change for the duration it is fixed for. An advantage of this is that you can budget well knowing exactly how much you need to pay over a certain period of time. A disadvantage though is that you don't have access to your funds if you need to take money out of your homeloan like equity, and if you do there ...may be some breakage costs, which is the interest that was owed had you have maintained the original term. Variable Rates can change over time of having the loan which can go both ways. If interest rates drop, like they have over the previous years, then your rate drops and then you can save money. Inversely if rates go up, then your rate can also go up meaning you pay more in interest for the loan. An advantage of variable rate is they usually can come with offset or redraw accounts which basically means the extra funds you add to the loan will be offset against the mortgage and you only pay interest on the remaining amount. Which can save you several amounts of money over time. Knowing which one is best will really depend on your circumstances and what you have planned over the next few years. Having a good mortgage broker who knows your current situation can assist in giving you the information to make the right decisions. #GTMFinance#Mortgages#VariablevsFixed#Homeloans#Equity#Invesments#FinancialPlanning#Melbourne

15.01.2022 Liabilities: The opposite of Assets are liabilities. Assets are items that at the immediate term do not provide income or increases in value over time. I'm sure a lot of you have heard of statements like when you drive a new car out of a dealership it depreciates 15% in value immediately. Some liabilities can be used to help your financial position if resilience can be exerted. For example there are several interest free credit cards that are available for months to possibly even 1 to 2 years. If the owner of the credit card paid the payments off in full each due month, then they would be able to invest the money elsewhere while waiting out the interest free period. Are you using liabilities in a positive or negative way with your finances? #GTMFinance#Investing#liabilites #FinancialPlanning#Debt##Finance#Australia

14.01.2022 Critical Illness: Critical illness, also known as trauma cover is the insurance policy that covers you in the event of having a critical illness like heart attack, cancer, stroke, severe diabetes, blindness, other neurological and other diseases. This type of insurance is the only one that can't be purchased inside of superannuation. The probability of us having one of these illnesses in our working life is extremely high, so being adequately covered should be considered. The average cost for a heart attack out of pocket is $20k, cancer $120k, and stroke $150k. Do you know if you are covered? #Super#Truama#CriticalIllness#FinancialPlanning#Insurance#Protection#gtmfinance

13.01.2022 Online Broker Accounts: Due to there being minimal financial literacy taught in school or University most people are not aware of how they can purchase stocks individually for themselves. This can usually be done as easily as opening a bank account. In Australia there are several different broker accounts in which you can buy shares of publically listed companies on the Australian Stock Exchange called the ASX. All of the broker accounts have different fees to buy and to sell... and different capabilities when it comes to doing research and gathering information on different listed companies. Having the opportunity to be able to purchase stocks is one of the additional ways to receive dividends and grow wealth. Do you currently invest in the stock market? What are your current experiences? Feel free to comment, or send a DM if you have a question or would like to learn more. #GTMFinance#Investing#BrokerAccount#FinancialPlanner#Stocks#FinancialPlannerinMelbourne#Financialliteracy#WealthCreation

12.01.2022 Property: People frequently debate if or when they should buy property with their money. Property is an asset because it can either provide a place to reside in(so you don't have to pay rent) or an investment property (which provides rent) The hurdles that people sometimes have is the upfront financial commitment, and the ongoing commitment required for home ownership. Previously home prices doubled every 10 years or so, that would be hard to sustain at the prices houses have... reached in Australia. Though in most circumstances the interest is less than the amount someone would pay for the same place to rent, and additionally the principle will reduce over time. Once a property has been paid off, it will continue to receive passive income from the tenants it's rented out too, which can help build wealth. I hope this helped in choosing if to buy or continue renting when measuring between the two. #GTMFinance#Investing#AssetClasses#FinancialPlanner#PurchasingPower#Property#PassiveIncomeFinancialPlannerinMelbourne

11.01.2022 Does money grow on trees? We have all heard this saying before used in different contexts when people are spending lavishly, or making a reply when other people think you can spend more than you can. In this post I will support the position that it can. Money is a form of tender usually generated by providing some service that another entity is willing to pay for. If you work hard and acquite income producing assets that can replace your income, then you essentially are havin...g money grow on trees. Because you are no longer using personal exertion to produce the Income. Since we don't all want to work for the whole time we are alive, it's important to put yourself in the position to have streams of passive income to support your lifestyle. This way you won't have to work for your money, but have your money working for you. Feel free to send me a DM to find out the different ways to invest in passive income assets. #GTMFinance#Investing#MoneyTree#PassiveIncome#FinancialPlanning#CompoundInterest#Assets#Finance#Melbourne

09.01.2022 Retail Insurance: Retail Insurance is usually obtained through a financial advisor or an insurance advisor. Benefits of this is that there is a lot of details that should be taken into consideration when choosing the right insurance. There are different terms and definitions that can make a policy be a good policy or alternatively a bad one, also everyones situation is different so it's usually in anyone's best interest to have a professional access your insurance needs for y...ou. One big advantage of retail vs group or direct insurance is that the applicants health is reviewed before the the policy is issued. So therefore if the applicant is very healthy, they will pay the best premiums for their age & occupation. If the person is unhealthy or has pre-existing conditions, then that will be added to the policy as a loading or exclusion. This does 2 things, one if the individual needs to claim, they already have the disclosure on the persons file leading to a more efficient claim process. 2, the book of risk the insurer has is more accurate knowing the health of the people they are insuring, leaving better priced policies. Versus group and direct insurance since less investigation goes into accessing the policies, more claims are lodged, and higher premiums are paid for everyone. Also the health of the person is accessed at time of claim which is not the time the person who has the policy would be wanting to go through all of those questions. Do you know which type of policy you have? If not feel free to contact me and discuss. #GTMFinance#RetailInsurance#WealthProtection#Underwriting#Claims#FinancialPlanning#Melbourne

08.01.2022 Trying to decide if you should save up the minimum deposit for a home loan or the 20% and skip LVR? Read some great information on https://www.gtmfinance.com.au/latest/ to get a better idea!

08.01.2022 The very first thing to look at when it comes to investing is the risk return analysis. The higher the return the opportunity has, the higher the risk that will also follow. Investors ages and tolerence to risk(ie how much their investments can increase or decrease without panacking), is the tool financial professionals use to determine how to invest in clients funds If you have not identified your risk profile before then chances are your investments within your retirement o...r outside your retirement may not be suited for your best interest. Feel free to DM if you have any questions. #GTMFinance#RiskProfile#FinancialAdvisor#AssetAllocation#Growth#Timing#Management

08.01.2022 Passive Income: This topic is fairly controversial in people's opinions on passive income. Some advoctate it, and some dont believe in it like @garyvee It is essentially income derived off of holding an asset that you hold. You do not have to perform any exertion to earn this income, so practically people are not creating any value by receiving passive income. Though my perspective is for someone to have acquired the asset that is creating the passive income, they would have ...created value to purchase that asset previously. Furthermore, we all have a limited amount of years that we will be able to work, so having assets that provide an income stream to maintain your current lifestyle is important in the aspects of Independence and dignity. These days there is no set figure for what one needs to retire on. The tool I use is I ask my clients what income they will like to live on in retirement. For example $100,000. Then if their tolerance for risk is in an asset class that historically produces 5% return on investment, I then divide 100k by .05, which gives $2M. And this is the figure the person would need to maintain a passive income of $100k a year for their retirement. What are your thoughts on passive income? #GTMFinance#Wealth#Dividends#PassiveIncome#Assets#inancialPlanningAustralia

04.01.2022 Property: The next series we will cover is property. Property is a very well known asset that has been around for many centuries. Property is used as a home, it can also be used as an asset, or an investment to build wealth. I will go over the different options available and some advantages, disavantages, and also will talk about the liquidity of houses relative to other assets. There are also several different ways that houses can effect your tax circumstances as well as different types of ownership structures. Feel free to send any questions my way. #GTMFinance#Property#Investment#Asset#Wealth#Mortgage#FinancialPlanning#Melbourne

04.01.2022 Group Insurance: Group Insurance is the type of life Insurances that come with your super fund. For the most part when you become a member of a superfund they will provide you with default amounts of cover for life and TPD insurance. Some will also have Income protection. These default amounts are rarely the appropriate amount that you or your family will need for your circumstances. Additionally since there is no underwriting done before issuing the policy (reviewing of med...icals). Then the underwriting will be done at claims time. Which unfortunately can then result in some unfavorable outcomes. Another thing to note is that group polices are owned by the super fund. So the trustees of the superfund will be the entity who decides if you are eligible to claim, and also if you meet the condition of release. Group policies usually also have an expiry age of 65 which might not be the time you are intending for your insurance to expire. If you want to understand the type of insurance you have in your super feel free to reach out to me. #GTMFinance#Insurance#Super#Trustees#FinancialPlanning#Melbourne#GroupInsurance#IndustryFund