How to Acquire a Property using SMSF Loan in Australia

The SMSF lending prospects have considerably changed, and the number of SMSFs in Australia has increased by 15% in the past five years.

An SMSF property loan lets people borrow money from lenders to buy assets such as home or real estate property. One such benefit of investing in an SMSF loan is that it helps in generating both income and capital gain for the long term.

Home purchase using an SMSF

An SMSF is a savings account managed by individuals for their retirement instead of the one managed by a superannuation provider. To invest in an SMSF is a highly regulated process. It is suggested that the borrower seek advice from professional mortgage broker Sydney to understand the responsibilities and process correctly. This guide will help to understand how to process SMSF property loans in Australia.

SMSF property checklist for the borrower

Any Australian individual can invest in a property using an SMSF, but it would be best to brush up on investment knowledge before starting the process. This way, a borrower can approach the lender with confidence. When looking to buy a property using an SMSF, it needs to consider few rules mandated by lenders.

Deposit amount: The deposit should be 30% of property value. Every estimation related to the property needs to come out of the fund.
Proof of advice: Every lender will eventually demand verified written proof from the borrower’s accountant or financial planner, so it makes sense to keep it with supporting documents from the beginning.
Essential Payslips: Usually, the borrowers have to provide two recent payslips, ensuring the borrower’s ability to make repayments on time.
PAYG statement: It verifies the annual income which a borrower stated in his application form. Major lenders of Australia prefer the latest PAYG statements (past two years)
Super contribution history: When buying a property using SMSF, lenders want to check a minimum of 12 months’ history of the borrower’s superannuation contributions.
Benefits associated with SMSF loan

Reduce tax liability: One such good thing about SMSM property loans is that a borrower might claim any interest expenses on the loan as tax deductions by the SMSF. This strategy likely lessens the tax liability of the borrower as per the necessary tax rules and regulations.

Add value to retirement funds: Many people usually use SMSF home loans in Australia to boost their retirement savings. Due to negative gearing, it is also capable of reducing the effective tax rate.

Can utilise property income to pay off the loan: With an SMSF loan, a borrower can use income from the property to pay back the loan amount. It also allows the borrower to keep their investment separate from the other interests they might have to keep track of return in the long run.

Conclusion: A self-managed super fund (SMSF) can control borrowers’ superannuation and retirement based on their financial circumstances. It is suggested to seek financial advice from a trusted adviser.

If you considering seeking help from a Home Loan Broker in RussellLea Lea, then connect with Rajan Khatak, Director and founder at Your Finance Adviser. He has over 12 years of experience in this field and specialises in providing advice to various customers located across all types of industries in Australia.

FX Hedging Strategies

FX Hedging Strategies

Foreign exchange currency is an exciting market with ample opportunities and grandeur chances of accumulating wealth in a limited time. There are many calculations, millions of traders, businesses, and countries involved. Thus, forex is a never-ending cycle which produces the transaction of more than USD 6.6 trillion a day. Interestingly, the opportunities are greater here, and so are the chances of making money. Therefore, FX hedging strategies are considerably outstanding.

Currency hedging mitigates the risk prevailing on currency trading in the international market regarding the returns.

Notably, hedging gives a cushioning of not losing any money even when something goes wrong. So, if you are willing to go on an escapade of experimentation, the forex market is ahead of many assets and supportive in that direction.

As a trader, one feels safe. Moreover, if you choose a broker like ETFinance and ROinvesting, the benefits are incredible.

Here’re some of the best FX hedging strategies for traders.

What is the need for hedging strategies in the forex market?

The market of forex is unpredictable and volatile. It is hard to guess which way the tide will turn. In that case, a trader is always living in the peril of losing funds. The market oscillations are more extensive sometimes, and instead of earning, a market player ends up losing funds. Even sophisticated and experienced investors get affected while trading currency pairs or currencies like the US dollar.

Interestingly, if you’ve traveled abroad, you must have observed that sometimes goods or products you purchase seem inexpensive. That’s due to the exchange rate. But, also, it works conversely as well. It is because of the fluctuations and unforeseen forces forcing instability in the market. Such types of differences and changes can cause distinctions in investment and transactions.

Thus, as a trader, you need to be wary before buying, selling, or purchasing any goods because things change.

Rates of currencies move in waves. From trending on the way to the other, you can clearly see a wave and evaluate it through a graph. One can observe a significant impact on wealth, especially when you are holding a pair or currency for the short term.

Why is hedging used in forex?

The reason for hedging in forex is simple. It helps in protecting the position of a trader’s currency pair against the averse turns. This is short-term protection from any news or information that may trigger uncertainty in the market and people may lose their money. When we talk about hedging, two other similar strategies are used in a similar situation. You can apply hedge in the opposite direction or buy into options.

Moreover, it enables and helps investors to aim local equity returns in the international forex trades. It is quite simple and cost-effective that you may even imagine.

These ways can pave a path of hedging and benefits.

Strategy number one for hedging in forex

If you are willing to protect your position in the forex market partially through a hedge from an undesirable circumstance, then you can use forex options in the currency pair. However, this planning is addressed as an imperfect hedge because it only casts away some part of the risk and protects half of the partial position related to the trade. However, one must not see it as a downside but a method to apply protection shields.

For creating a situation for an imperfect hedge, a market player has to purchase the put option. It will protect him/her from the downside perils. It can happen while the trader has long currency pair. In the inverse condition, when the bets are on the short currency position, the trader needs to buy call options for reducing the risk possibility.

PS: When a buyer applies a put option, it gives him/her the right sans obligation to sell or short a currency pair at a strike price or prior to the expiry date to the options seller in lieu of the payment in the form of a premium upfront.

On the other side, call options offer a buyer the right but not the obligation to purchase a currency pair at the date of expiry or strike price in exchange for an upfront premium as payment.

Strategy two for hedging in forex

There’s no better thing than fully protecting your positions. It will guard you against any threats that may disrupt the way you trade. Every undesirable situation will be thrown out. It is profitable for traders who trade extensively in the currency market and require a shield from relentless ups and downs.

Here, one has to hold both short and long positions at the same time on the same forex pair. This is known as a perfect hedge. There’s no room for complacency, and profits are fully accompanied in it. So, it is advantageous to traders.

However, there may be some contradiction in overselling a currency pair that you are willing to hold for a longer time. In that condition, two positions will offset each other. Interestingly, it is quite common than it may appear. Such a type of hedge arises when a trader holds short and long positions for long-term trade and does not liquidate them.

There’s a creation contrary trader for the short-term hedge. It happens in front of important information or a piece of news.

Dynamic hedging in forex

The process of dynamic hedging in favor of traders irrespective of their trading experience. However, they require the proper application of strategies. It can be determined as the best thing for a portfolio. Depending on the quantitative indicators and other measures, a trader lands in himself/herself in the best situation. This provides investors with an opportunity to capitalize on currency pair.

Conclusion:

If you are struggling to trade in the forex market, which is full of opportunities, then using brokers like 101investing, ETFinance, ROinvesting, ABinvesting, and others. Hedging gives a chance to retrieve the lost money when the price starts to fall. Traders include several strategies and ways like options, futures trading, etc. of trading in the market successfully applying hedge.

FX Hedging Strategies

Foreign exchange currency is an exciting market with ample opportunities and grandeur chances of accumulating wealth in a limited time. There are many calculations, millions of traders, businesses, and countries involved. Thus, forex is a never-ending cycle which produces the transaction of more than USD 6.6 trillion a day. Interestingly, the opportunities are greater here, and so are the chances of making money. Therefore, FX hedging strategies are considerably outstanding.

Currency hedging mitigates the risk prevailing on currency trading in the international market regarding the returns.

Notably, hedging gives a cushioning of not losing any money even when something goes wrong. So, if you are willing to go on an escapade of experimentation, the forex market is ahead of many assets and supportive in that direction.

As a trader, one feels safe. Moreover, if you choose a broker like ETFinance and ROinvesting, the benefits are incredible.

Here’re some of the best FX hedging strategies for traders.

What is the need for hedging strategies in the forex market?

The market of forex is unpredictable and volatile. It is hard to guess which way the tide will turn. In that case, a trader is always living in the peril of losing funds. The market oscillations are more extensive sometimes, and instead of earning, a market player ends up losing funds. Even sophisticated and experienced investors get affected while trading currency pairs or currencies like the US dollar.

Interestingly, if you’ve traveled abroad, you must have observed that sometimes goods or products you purchase seem inexpensive. That’s due to the exchange rate. But, also, it works conversely as well. It is because of the fluctuations and unforeseen forces forcing instability in the market. Such types of differences and changes can cause distinctions in investment and transactions.

Thus, as a trader, you need to be wary before buying, selling, or purchasing any goods because things change.

Rates of currencies move in waves. From trending on the way to the other, you can clearly see a wave and evaluate it through a graph. One can observe a significant impact on wealth, especially when you are holding a pair or currency for the short term.

Why is hedging used in forex?

The reason for hedging in forex is simple. It helps in protecting the position of a trader’s currency pair against the averse turns. This is short-term protection from any news or information that may trigger uncertainty in the market and people may lose their money. When we talk about hedging, two other similar strategies are used in a similar situation. You can apply hedge in the opposite direction or buy into options.

Moreover, it enables and helps investors to aim local equity returns in the international forex trades. It is quite simple and cost-effective that you may even imagine.

These ways can pave a path of hedging and benefits.

Strategy number one for hedging in forex

If you are willing to protect your position in the forex market partially through a hedge from an undesirable circumstance, then you can use forex options in the currency pair. However, this planning is addressed as an imperfect hedge because it only casts away some part of the risk and protects half of the partial position related to the trade. However, one must not see it as a downside but a method to apply protection shields.

For creating a situation for an imperfect hedge, a market player has to purchase the put option. It will protect him/her from the downside perils. It can happen while the trader has long currency pair. In the inverse condition, when the bets are on the short currency position, the trader needs to buy call options for reducing the risk possibility.

PS: When a buyer applies a put option, it gives him/her the right sans obligation to sell or short a currency pair at a strike price or prior to the expiry date to the options seller in lieu of the payment in the form of a premium upfront.

On the other side, call options offer a buyer the right but not the obligation to purchase a currency pair at the date of expiry or strike price in exchange for an upfront premium as payment.

Strategy two for hedging in forex

There’s no better thing than fully protecting your positions. It will guard you against any threats that may disrupt the way you trade. Every undesirable situation will be thrown out. It is profitable for traders who trade extensively in the currency market and require a shield from relentless ups and downs.

Here, one has to hold both short and long positions at the same time on the same forex pair. This is known as a perfect hedge. There’s no room for complacency, and profits are fully accompanied in it. So, it is advantageous to traders.

However, there may be some contradiction in overselling a currency pair that you are willing to hold for a longer time. In that condition, two positions will offset each other. Interestingly, it is quite common than it may appear. Such a type of hedge arises when a trader holds short and long positions for long-term trade and does not liquidate them.

There’s a creation contrary trader for the short-term hedge. It happens in front of important information or a piece of news.

Dynamic hedging in forex

The process of dynamic hedging in favor of traders irrespective of their trading experience. However, they require the proper application of strategies. It can be determined as the best thing for a portfolio. Depending on the quantitative indicators and other measures, a trader lands in himself/herself in the best situation. This provides investors with an opportunity to capitalize on currency pair.

How to invest in mutual funds online – A Step –by Step approach

There are several online mutual fund investment platforms available. One can now invest in mutual funds online seamlessly through the different types of online mutual fund platforms available anytime, through a computer or a mobile phone.

Individuals can look to invest in mutual funds online directly through the company website or their mobile app. Individuals can also invest in mutual funds online through a bank or a financial intermediary, such as the SEBI (Securities Exchange Board of India) registered advisor, broker, or distributor’s online mutual fund investment platform. A SEBI registered broker should have obtained AMFI Registration Number (ARN) from the Association of Mutual Funds of India (AMFI).

One can also invest in mutual funds online through their DEMAT (Dematerialized) account either with their stockbroker or through a depository participant. Investors do not necessarily need a DEMAT account to buy a mutual fund.

He/she can follow the steps below to invest in mutual funds online:

Step 1: Start by filling in the name, email, phone number and bank details.

Step 2: Complete the eKYC online using identification details. Alternatively, investors can also complete their KYC compliance procedures at a KRA (KYC Registration Agency) before investing in mutual funds online.

Step 3: Once the KYC is completed, now the investor must select the mutual fund scheme of his choice based on his investment goal, investment tenure, or risk appetite.

Step 4: Next, he can enter the investment amount he plans to invest in mutual funds online

Step 5: Finally, select the mode of investment that is one-time or SIP (Systematic Investment Plan) investment.

These days, investors can also benefit from the customer support options available online to buy, redeem, switch, register, or cancel SIP, STP (Systematic Transfer Plan) and SWP (Systematic Withdrawal Plan).

Comparing Freelance SEO Consultants and Agencies

What’s the difference between freelance SEO consultants and agencies?

The main difference is obvious, freelancers work as independent consultants. They’re usually self-employed and their client base is often localised, although in theory freelance SEO’s can work from anywhere with clients from anywhere.

SEO agencies offer similar consultancy services but they have a large team. The size of an SEO agency will range from anything from a couple of people to hundreds. SEO agencies often offer other internet marketing services like web design, pay per click advertising or display advertising as well as SEO.

Price

As with other service based industries typically freelance SEO’s are cheaper than SEO agencies. Agencies have higher overheads like offices and sales teams, finance departments and account managers. Most freelancers work independently from home offices making their overheads significantly lower.

Most agencies an freelance SEO’s price their work hourly or on a day rate.

Process

The actual SEO process which agencies and freelance consultants follow is usually quite similar. There’s a fairly well developed best practice process for optimising a website which usually looks something like:

Keyword research
Technical optimisation
On site optimisation
Link building
Reporting
Terminology and the details of each part of the process will vary from agency to agency and consultant to consultant but most will follow this formula by and large. Some freelancers may focus on a particular part of the SEO process like link building but most are all rounders who can complete all parts of the process.

The biggest difference with an agency is probably the level of account management involvement which can be useful for larger campaigns with big brands.

Quality

The quality of SEO work delivered by agencies and freelancers varies greatly so no real comparison can be drawn and as a business considering working with either a consultant or a consultancy it is your responsibility to seek assurances about the reliability, credibility and performance of who you hire to do your SEO.

Seek references from other customers about the experience of working with the agency or the freelancer and check their clients results in Google search results.

Agency’s often sell themselves on the benefit of having a multi-disciplinary team at their disposal made up of departmental specialists like link builders and copywriters. This can certainly be an advantage but just as often freelancers can offer a better quality of service and results by having more personal experience on your project.

Experience

Having a team may give agencies an advantage in this respect but often freelancers are ex-agency employees who have been in the SEO business longer and are at the top of their game. When working with an agency be sure to seek assurances about the experience of the team members working on your project. Sloppy SEO work conducted by under qualified consultants can in some cases damage your websites search rankings more than it helps.

Sector specialists

Managing an SEO campaign has different challenges in different industries and often specialist experience working in a certain sector can be a big advantage. Some freelance SEO consultants will specialise in a sector like travel, retail or finance or in a certain geographical area like local businesses in London. Most SEO agencies don’t specialise in a sector because they would soon run out of potential clients (as an agency should only work with one site in a particular niche to avoid conflict between clients) this means they may be more generalists however they will often be able to draw on knowledge from other campaigns in the same niche.

Technology

Some larger SEO agencies have developed bespoke tools to manage their clients campaigns and generate reports. Technology is certainly an important part of SEO however for the most part the best SEO tools are available to everyone (at a price). Most agency tools are designed to create reports and streamline parts of their SEO process. They can certainly help but be aware that there’s no secret tool or piece of technology that will deliver you higher search rankings- only good solid SEO work will do that and it always involves the human touch.

There’s certainly no one size fits all answer for whether a freelancer or agency will be a better fit for your SEO project. When you’re seeking proposals I’d recommend talking to both, comparing the advantages and disadvantages of each and ultimately choose based on the quality of their proposed solution and integrity of personal references.

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