The Weekly Times - TWT - May 2nd, 2018

22 THE WEEKLY TIMES Wednesday 2 May, 2018
Real Estate & Investment
A grand ve bedroom residence in ast yde
SOLICITORS DIRECTORY
WINSTON READFORD
NOTARY PUBLIC Ⅰ SOLICITOR Ⅰ CONVEYANCING
165 Coxs Road
(cnr Chauvel Street)
NORTH RYDE
F 9888 3865
T 9887 2888
EASY PARKING
admin@winstonreadford.com.au
SEE US FIRST
Auction
Shop 6, For 43-49 all legal Blaxland andRoad
all other
(corner conveyancing
legal
of Argyle services
matters Avenue)
Rear 223 Victoria Rd, www.calabreselaw.com.au
RYDE NSW 2112
GLADESVILLE 2111
Phone: 9817 4698 Phone: (02) 9743 9807 1333 3222
Head Office 154 Elizabeth 22/103 St, SYDNEY Majors Email:
Bay 2000Rd,
Phone: 9264 3877 Peter.Howell@ohlegal.com.au
Concord
26 Melba Drive, East Ryde 5 2 2
GRAND 5 BEDROOM FULL BRICK HOME!
• High Side – District, Chatswood & City Views
• Spacious Eat-in Gas Kitchen, Miele Oven, Pantry
• Formal Lounge & Dining - Family/TV Room
• Home Theatre/Teen Retreat with private entry
• Express City & Local Bus from Sager Place
Shops
www.raywhitenorthryde.com
RONALD S.
CZINNER & CO.
Solicitors &
Conveyancers
15/1 Jordan Street
Gladesville
9816 2133
All legal & conveyancing matters.
YOUR CONTACT FOR
Family Law
We can help with
Conveyancing
“Wills, probate &
DECEASED ESTATES
Immigration Law &
LAWYERS, CONVEYANCERS
N O& NOTARY R Y PUBLIC BLIC
WE CAN HELP WITH WILLS,
PROBATE & FINALISING
“Know Where You Stand”
F there is one thing Melba rive ast yde
stands or, it is uality and grandeur.
This is the opinion of
Ray White North Ryde /
Macquarie Park marketing
agent Janet Fletcher.
Set on the high side of
one of East Ryde’s blue
ribbon streets and of full
brick construction, the
home offers multiple living
spaces, five bedrooms,
two bathrooms and three
powder rooms.
It will be auctioned on
site on Saturday May 26 if
not sold prior.
A home theatre/teen retreat
has its own private
entry and powder room,
also offering opportunity
as a home business or
separate income.
“Grandeur is the pivotal
AUCTION
Saturday, 26 May
@ 3.30pm
VIEW
Saturday 5th May
12:00pm-12:40pm
Janet Fletcher
0438 543 547
Janet.fletcher@raywhite.com
9 Avon Rd, North Ryde
word as you enter the
spacious lounge room
and dining room with portrait
windows capturing
the views says Janet.
“The Master bedroom
suite is reminiscent of a
Hollywood movie set and
truly a parents’ retreat in
every sense of the word
with a custom built dressing
room, large ensuite
and balcony to relax and
unwind after a busy day,
she said.
A large eat-in kitchen
offers gas cooktop, Miele
oven, Miele dishwasher
and separate pantry.
A light and bright family/
T room flows to outdoor
entertaining and grass
backyard for the dog to
romp or children to play.
The property is located
just minutes from the
highly regarded Ryde East
Primary School and Sager
Place shops with Express
and Local us Service.
“While buyers can move
in as is, what really excites
me about this property
is its major future
potential, which I believe
would thrust this home
into the multi-million dollar
price category, Janet
adds.
First Open for Inspection
Saturday from 12
noon to 12.40pm. For
further details contact
Janet Fletcher 0438 543
547.
Banking Royal Commission Shaking Things Up
MA Australian
bans’ nancial advisers
are copping it, as e continue
to hear their customers’
interests have
not alays underpinned
their recommendations
in a aning oyal Commission
that has so ar
eposed shocing conduct.
It’s disgusting and it’s now
obvious that this inuiry was
needed to clear the air.
People are now understanding
that banks are loyal
to their shareholders and not
their customers - confusing,
as we assume banks have a
moral obligation to look after
us
Ȧfter a career working in
four banks, I see things from
a different perspective.
Mortgage brokers seem to
be coming out of the hearings
OK, although there was some
concern over credit advisers
recommending that people
borrow more than they need.
For example, if a couple
was looking to refinance their
$500K mortgage - secured by
a $1.5M home - a mortgage
broker might suggest borrowing
an extra $700K, if the
bank’s servicing calculator
permitted.
This could be set up as a
line of credit, or as ‘Loan B’,
with its very own offset account.
For clarity, either way, it
would mean that there would
be no interest paid on this
‘cash out’ unless it was actually
used.
(s/c 18pt bold)
The negatives
Let’s first look at the potential
negative outcomes.
I refer to a question we at
he areoot roer
iChoice always ask in our
34-bullet-point questionnaire,
in which respondents rate
each item with a “, “, “3,
“ or “5.
The question is: “How do
you rate your financial responsibility;
that is, your ability
to not spend money just
because it is available to you
via redraw of offset
If they tick 1, 2 or 3, it may
be the signs of a ‘spendaholic’,
or an indication of
some other dependency, like
enjoying a punt. In this case,
a mortgage broker must respect
that the client probably
doesn’t need to see $700K
available to them every time
they go to an ATM.
If it’s all in an offset account,
the balance will show on the
screen as “, CR.
This can be misleading. It’s
not theirs to spend willy-nilly:
it’s their equity in their home
and if they spend it, they’re
increasing their effective debt.
(s/c 18pt bold)
Potential benefits
Now let’s look at the benefits
of euity unlocking’. In
the example above, this couple
now has $700K they can
spend at any time in the future,
just by cutting a cheque.
If they wanted to renovate
their home, buy a car, build a
pool, help the kids or go on a
holiday, and need some cash
to do so, they don’t need to
go through the hassle of another
loan application to get
extra cash – it’s all sitting
there.
Imagine if, in a couple of
years, their circumstances
change - they may not be able
to use their equity and won’t
get the approved
There’s an even bigger benefit.
Let’s say they wanted to
buy an investment property.
Firstly, they can cut a 10%
cheque at auction, without
the need for an expensive
‘Deposit Bond’.
But if the property is being
sold for 6, they can offer
great terms to the vendor. For
example, they could offering
only $550K, because they
can grab their money from
their offset account and buy
the property and it can settle
in a matter of days.
They can do this by using
‘Loan B’ to fund it all, without
charging the new property to
the bank. So, it’s great to have
an investment that is unencumbered.
This is so powerful because
the settlement term - normally
6 weeks - is a negotiating
point just like the selling price.
Having all the funds available
works wonders for deceased
estates and divorce
sales, where vendors just
want to get their hands on
ith ason houry
their money and move on.
Combine this with a December
sale and it’s even
more powerful. endors love
the idea of being able to settle
before the holidays. Christmas
does funny things to
people.
Most banks won’t allow you
to ‘unlock’ $700K without an
immediate purchase on the
cards, and even if they do,
they’ll charge the investment
rate’ on that portion (Loan B).
Luckily, there are a couple of
banks that will do both ‘Loan
A’ and ‘Loan B’ at the owneroccupied
rate of 3.70%. A
no-brainer if you consider
yourself financially responsible
and want the maximum
flexibility to get ahead.
At iChoice, if you tick 1, 2
or 3 for the uestion above,
we won’t even speak to you
about the benefits of unlocking
equity, respecting that it
might not be right for you.
What a shame the banks
aren’t as responsible as we
are. I guess that’s why there’s
a Royal Commission. So for
advice that’s right for you,
rather than the banks, speak
to us.
The Barefoot Broker, Jason
Khoury, is the Managing
Partner of the award-winning
Concord West-based iChoice
and can be contacted on
9743 0000.