Here we are at the beginning of April, with Easter just finished, and you have to wonder where the time between Christmas and now has gone. We have certainly been busy which is somewhat unusual given the 3 months to 31st March, is one of our quietest periods. If this is a pre cursor to the lead up to June 30th and you are thinking of purchasing I would try and finalise this sooner then later.
I always like to start with talking about interest rates, and where this will head. My view has slightly changed and I think rates will increase over the next 6-12 months, given the US Economy will strengthen and be more competitive, our dollar will possibly fall further given the RBA an opportunity to raise, and wage growth will be more evidenced in the business community. In the short term, say up to 3 months I think we won’t see too much change but longer term it will.
The other unknown factor is the outcome of the Royal Commission for the Banking Industry, and what regulatory impacts this will impose on lenders. Additional costs will be incurred and this will be passed onto the consumer via rate and fee increases. Watch this space!
Now back to preparing for 30th June, and I would like to give you some simple tips to help:
- Talk to your accountant or financial adviser first before approaching finance. Structure of debt is an important factor as is tax planning.
- Look to prepaying interest in advance on investment property loans for up to 12 months in this current financial year allowing you to claim additional interest costs.
- Think about purchasing your own premises using a Self Managed Super fund Loan.
- Take up the instant asset write-off benefit for small business purchases of < $20,000
- Purchase a motor vehicle, truck or equipment finance through a lease, chattel mortgage or novated lease product.
We can help you with any lending solution prior to 30 June 2018 and meet with together with either your accountant or financial planner to go through tax effective and structured finance options.