Here at Capri Financial Services, we know that many people face an uphill battle when it comes to finding a path to financial freedom. Millions of Australian families and individuals are working around the clock to try and pay off mortgages and loans that are keeping them locked into a life of debt, with very little light at the end of the tunnel. Little do people know how to best structure their debt to maximise the accumulation of assets while maintaining their disposable income. Its like paying for a gym membership but not getting into shape. Many people get into the property market to try and get ahead, but after a while, find they are not making the financial progress they first set out to achieve. Capri Financial Services is like your very own financial personal trainer. We can help you get on track, and stay on track by structuring a financial plan, and keep you accountable to achieving the goals you set out to, and ensuring you stay committed to maximising your financial future.

Having enough disposable income to live the life you enjoy is important to everyone. And just because you want to take that next holiday, or want to buy that new car, doesn’t mean you cannot still be making progress in paying off your debt. If you have a principle place of residence that you are paying off, are you maximising your opportunity to reduce your debt while increasing your investment assets? Capri can advise on the strategies that help you:

• Maintain your disposable income
• Reduce the term of your loan to pay your house off faster
• Potential tax benefits from restructured loan structures
• Increase the purchase of other investment assets
• Stick to a budget that accounts for your lifestyle while still making progress on your financial future
• Increase revenue generating assets to help supplement retirement income.
• Teach you how to manage your finances and keep you accountable to your commitment.

Your current strategy might look something like this:

What Capri can help you achieve:

Capri’s experienced financial advisors can monitor your expenses to ensure your disposable income is maintained to continue to live the lifestyle to suit your budget. We can also guide you through the techniques required to reduce your debt, and create a surplus to increase your capacity to pay those debts off faster, while increasing your personal savings. Capri Financial Services will provide ongoing assistance and support and act as your financial personal trainer throughout the process, by developing the right action plan and holding you accountable to your budget and ensuring you stay on track. If you want to know more about what Capri can do for you, please contact our office for a free consultation.

Capri Financial Services
P: 07 5527 6040
E: info@caprifs.com.au

The post Make The Most Out Of Your Financial Future With A Debt Restructure Plan appeared first on Home.

Debt restructuring is a process used by companies to avoid default on existing debt or to take advantage of a lower interest rate. The process is carried out by reducing the interest rates on the loans and/or extending the date when the company’s liabilities are due to be paid in order to improve the firm’s chances of paying back its loan. Creditors are made to understand that restructuring a company’s debt is in their best interest if they would receive less in a bankruptcy and liquidation event than what they would receive under a debt restructured package. Restructuring debt, therefore, could be a win-win for both entities as the business avoids bankruptcy and the lender gets something better than a bankruptcy court would give it.

In addition to the reduction of the total loan amount owed or an extension of the period of repayment, a debt restructure could also include a debt-for-equity swap. This occurs when creditors agree to cancel a portion or all of the outstanding debt in exchange for equity in the company. The swap is usually a preferred option when the debt and assets in the company are very large, and forcing it into bankruptcy will not be ideal. In these instances, the creditors would rather take control of the distressed companies as a going concern.
A company seeking to restructure its debt may also renegotiate with its bondholders to take a haircut. This typically means that a portion of the outstanding interest payments will be written off and/or a portion of the principal will not be repaid.

To protect itself from a situation where interest payments cannot be made, a company will often issue callable bonds. A bond with a callable feature can be redeemed early by the issuer, especially in times of decreasing interest rates. This allows the issuer to readily restructure debt in the future as the existing debt can be replaced with new debt at a lower interest rate.

Individuals facing insolvency can renegotiate terms with creditors and tax authorities. For example, an individual who is unable to keep making payments on a $250,000(¥27,500,000) subprime mortgage may agree with the lending institution to reduce the mortgage to 75%, or 75% x $250,000(¥27,500,000) = $187,500(¥20,625,000). In return, the lender will receive 40% of the proceeds of the house sale, whenever it is sold by the mortgagor.

Whether a company or individual in financial turmoil, debt restructuring provides a less expensive alternative to bankruptcy as it is a process through which an entity can receive debt forgiveness and debt rescheduling, thereby, avoiding foreclosure or assets liquidation.

If you have any questions about debt restructuring, please contact us here at Capri Financial Services.

The post What is ‘debt restructuring’? appeared first on Home.

Health, home and housing

This year’s Federal Budget is focused on health, home and housing. Keeping healthcare available to all Australians in the long term and living the dream of owning one’s home will be central issues for many Australians.

Keeping our future healthy To ensure all Australians can continue to access timely and affordable healthcare, the Government announced that it will set up the Medicare Guarantee Fund to pay for all expenses on the Medicare Benefits Schedule and the Pharmaceutical Benefits Scheme (PBS). The revenue raised from the Medicare Levy will be credited to this fund (excluding amounts to fund the National Disability Insurance Scheme (NDIS)).    To fully fund the NDIS, the Medicare levy will be increased by 0.5% to 2.5% from 1 July 2019.

There’s no place like home “If a family or an individual has a roof over their head that they can rely on, then all of life’s other challenges become more manageable,” Treasurer Morrison said.  To help first home buyers get ‘into the game’, they will be able to save for a deposit by making additional voluntary contributions into their superannuation account from 1 July 2017. The First Home Super Savers Scheme will enable access to the tax advantages of superannuation with pre-tax contributions and earnings taxed at 15%, rather than marginal rates, and on withdrawal taxed at the relevant marginal rate, less 30% offset. These voluntary contributions plus their deemed earnings can be accessed from 1 July 2018. Savers will not have to set up a new account, they can just use their existing super account while contributions will be limited to $30,000 per person in total and $15,000 a year. The contributions made will be counted under the relevant contributions caps.

One buyer’s home is another’s downsized property  To increase housing stock, the Government is encouraging older Australians, aged 65 or more, to downsize their properties by allowing them to make a non-concessional contribution of up to $300,000 into their superannuation fund from the proceeds of the sale of their principal home. Importantly, the normal super contribution rules such as ‘work test’ requirements that currently apply to those aged 65 or older will not apply to these contributions, and they can also be made by those with more than $1.6 million of total superannuation.

Keeping local property for locals Tougher rules will apply on foreign investment in residential real estate by removing the main residence capital gains tax exemption and applying a vacancy charge of at least $5,000 on all future foreign investors who fail to either occupy or lease their property for at least 6 months a year. Developers will also be prevented from selling more than 50% of new developments to foreign investors.

In other news For small business, a reprieve on the $20,000 write off on capital expenditure that was due to end on June 30, 2017. Small business will be able to take advantage of this write off for another year.  And for those older Australians who lost their pensioner concession card by the pension assets test change introduced on 1 Jan 2017 – they will be getting them back. Infrastructure, investment in regional Australia and affordable energy were also given a mention in the budget speech – “the right choices to secure better days ahead” – the Treasurer said. Education and childcare also rated mentions; university fees will rise by 7.5% by 2021 and childcare rebates will be means tested.

The post Budget Update 2017 appeared first on Home.