How I can help your clients during this time of uncertainty
Your clients don’t need to wear a mask, load up on hand-sanitiser or leave their house to get a home or asset loan approved, or organise refinancing. I can hold discussions via video or phone, collate all their details via an Online Fact Find, and can sign documentation online using E-Sign.
While we’re thrust into isolation, this could be the perfect time for your clients to focus on their finances - from the comfort of their couch. Here’s how I can help.
Is your client a business owner?
As a fellow self-employed business owner, I welcome the government’s tax breaks. The most relevant of these are massive instant asset write-offs.
So if they need new cars, vans, computers and tech equipment, fit-out, furniture, TVs, solar systems or tools, now could be the best time to act. I can organise their asset finance to make the most of these write-offs, which effectively allow them to write off assets up to $150,000*, with an immediate tax deduction (rather than depreciating over time). Note: the assets need to be purchased and in use by June 30, 2020.
If your client is self-employed or a contractor who has lost income due to COVID-19 shutdowns, the government is arranging payments from $550 a fortnight up to double that to help sustain you over the next six months. So popular this program has been that MyGov crashed on day one. So they’re not alone.
Has your client recently lost employment?
Job security and business cashflow are two of the casualties of COVID-19 and the government is putting provisions in place to support them. Some of the big banks are also offering 3-month exemptions from home loan repayments to clients who lose their income. Government rental assistance may be available to your clients too.
If they’ve lost income they could consider withdrawing $10,000 of your superannuation this financial year, and another $10,000 next financial year. Yes, it means selling out of at a low point in the market and unfavourable ramifications to their superannuation pool at retirement, but if it’s the difference between survival or hardship of a household or business, this is a lifeline. This is an option (subject to hardship criteria and specific fund terms and conditions) to use as an emergency cash injection to keep families or businesses afloat in the short term. However when making decisions on Super, it is important to seek financial advice.
As I mentioned earlier, employees who have lost income may access supplementary payments for the next six months of $550 to $1100 a fortnight upwards with no waiting period. Importantly, they will not be asset tested.
Does your client have a home loan?
Oddly, they might be able to make the most of a warped situation. You see the latest rate cut this month in response to the virus brought Australia another record low of 0.25 per cent. The banks responded in kind, as did many lenders, and now we’re seeing rates as low as 2.19 per cent**. That’s seriously low.
More than 30 lenders are offering rates below 3 per cent and Loan Market has one of the largest panels of banks and lenders - I’m ready to negotiate on your client’s behalf.
With banks and lenders eager to win business and refinancing being an option to consider - I can help. As I mentioned earlier, big banks are also offering repayment-holidays for several months if they’ve lost income. So there’s lots for me to negotiate on your client’s behalf.
Was your client about to buy a property?
Scott Morrison’s announcement on Tuesday has put a halt on auctions and public inspections. So what does that mean? Auctions account for only 15 per cent of properties for sale in Australia, and technology (3D virtual tours, video inspections) will go some way towards giving buyers a good look around a property. Private inspections will become more common.***
Perhaps buyers intending to purchase in 2020 shouldn’t discount their plans just yet. There are some seriously competitive options out there when it comes to borrowing, and property is considered a long term safe harbour during volatility.
It’s no surprise that “how will coronavirus affect house prices?” is one of the most Googled questions since the outbreak. One thing is certain: property is undersupplied in Australia and that could mean some protection from economic downturns for property owners.
Significant property crashes only happen when people have to sell when they don’t want to. The good news is the banks and government have put measures in place to ensure this won’t happen by extending mortgage holidays (payment deferrals) and committing to working alongside clients throughout this crisis.
As a result, we, and many other commentators believe the property market will be safe-guarded more than other asset classes. And I am here to help navigate it.
I’m here for your clients but I’m here for you too.
*DISCLAIMER:This information is provided on the terms and understanding that: Loan Market Group Pty Ltd, Loan Market Pty Ltd provide this information for discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements.
**Rates are subject to change and lender terms and conditions.