Sydney’s Mortgage Loan Exit Strategies: Cashing In On Profits

Sydney’s Mortgage Loan Exit Strategies: Cashing In On Profits – If you’ve been retired for 20 years, can you still expect to get a 30-year mortgage?

New mortgage rules for older Australians could leave many of them ‘too old for a home loan’

Sydney’s Mortgage Loan Exit Strategies: Cashing In On Profits

But as house prices rise faster than incomes, many borrowers are kept out of the housing market until their 40s or must refinance their loans later in life after a relationship breakdown.

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It’s time to get your home loan right – because you may not get a second chance if you’re over 45. New rules for obtaining a property loan

Under the new Responsible Lending Act, banks and financiers are now requiring senior borrowers to provide detailed evidence showing they can continue to repay the loan after or before retirement age.

If you can’t prove your ability to continue making your mortgage payments after age 65, you may be able to take out a short-term loan (with extra payments) or avoid it altogether.

For example, a quick look at the ASIC mortgage calculator shows that the shorter the loan term, the higher the monthly payment.

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This equates to a potential difference of $600 per month, or an additional $7,200. short-term loan.

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Lenders are now required to meet their responsible lending obligations and only lend to people who have demonstrated the ability to repay the loan without financial problems.

This may vary from one payer to another, but in general, if the loan cannot be repaid without selling the home, the loan may be considered unsuitable for the borrower.

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You can expect an official credit downgrade to show up on your new score and other investors may view you as high risk and refuse to do business with you. This is why it is so important to have a financial advisor on your side who is looking out for your best interests.

Your financial advisor, because we have been helping our clients finance (and refinance) and advise them on their options for over 20 years.

As borrowers approach retirement, this often indicates a significant change in their financial situation and ability to repay the loan.

The NCCP Act states that if the only way for the borrower to repay their mortgage is to sell the property, this will not be considered an acceptable exit strategy.

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The cost of long-term rental is forever and when you retire you can be left with a real financial burden. If you are unable to pay the increased rent on your existing property, you run the real risk of constantly having to cover the continued increase in rent and the cost of moving from one location to another.

For more information on the real financial difference between a modest standard of living and a comfortable standard of living, read our article What Does a Comfortable Retirement Really Cost?

You can sell at any time without financial problems. Although under the NCCP you are only considered to be in financial difficulty if you cannot repay your mortgage without selling your home, not all lenders have the same approach and may still need to a loan exit strategy.

Many small business owners and self-employed people are financially strong, but often don’t have much money to invest in a superannuation. As a result, many struggle to get a home loan or personal loan consolidation when they turn 45 and turn 50.

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Now is not the time to find yourself without your financial advisor listening to you.

Drew Browne is a professional financial risk consultant who works with small business owners and their families, dual-income professional couples, and diverse families. He is an award-winning author, speaker, financial advisor and business consultant. Its Financial Group is committed to using business solutions for the good of society. In 2015, it was recognized as a B Corp. and in 2017 it was recognized as the top business at the Australian National Business of Tomorrow Awards. Today, he advises small business owners and their families on how to protect their businesses. He writes for successful small business owners and industry publications. You can read his Modern Small Business Leadership blog here. You can connect with him on LinkedIn. All information provided is general advice only and we have not taken your specific situation into account. Before making a decision based on this advice, you should consider whether this advice is appropriate for you in light of your particular situation.

Prepare your family life (and the small business that supports it) and protect it from the realities of life, love and business that we all face.

Sorry, this website uses features that your browser does not support. Upgrade to the latest version of Firefox, Chrome, Safari or Edge and you’re done. There are many types of exit strategies. Otherwise known as “success plans,” exit strategies are an important business planning tool that every business owner should use. Whether you know it or not, no one can run their business forever. An exit strategy outlines the best possible exit plan for you as a current business owner, and it’s worth the time and effort when it comes to the details.

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Some exit strategies we plan and others we are working on (i.e. liquidation, administration, bankruptcy). But for the purposes of this blog, let’s discuss four different types of exit strategies available to successful business owners. These strategies can be used for future planning, but they all have their own advantages and disadvantages.

For many business owners, passing on the fruits of their labor to a loved one is the ideal succession plan. This allows the family business to stay in the family and hold sentimental value.

Advantages: The business remains in the family of the current owner and can still participate on a small scale if desired.

Cons: Your family member may not be a good fit for the position in terms of skills and experience. Your decision may be emotionally driven and have a negative impact on the future of your business. However, the family member may not have the funds or financial capacity to pay the departing family member. This may result in future financial burdens for the departing member.

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This is an exit strategy that works for most business owners. Not only can this process be a smooth transition, especially when facilitated by an experienced Sydney business broker. But this strategy can reduce disruption overall. I will explain the pros and cons in more detail below.

Benefits: The team member is already familiar with the business, which helps ensure a smooth ownership transition. There is also a level of care, honesty and trust between the current owner and the new owner. The new owner has also made contact with the rest of the team, so there are some familiar faces remaining from the current staff. Ultimately, there will be no apparent disruption to operations and operations will continue as usual.

Disadvantages: The new buyer knows the company from the inside, so it is possible to take advantage of outside buyers, which can negatively affect the purchase price. A new buyer may not have the money or financial capacity to purchase the business. They can therefore request financing from the seller of the existing owner. This can cause constant anxiety for the seller because the business must be profitable to repay the loan.

If your business has market share that a competitor currently wants (whether it’s customers, location, products/services, or plant/equipment), this can be a great exit strategy.

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Advantages: There is potential for successful negotiations when entering into a merger/acquisition. If a competitor values ​​your business and wants to remove it from the market as a competitor in the future, this may give you the opportunity to get a better price.

Disadvantages: If there is little interest from third parties and competitors know this, they may purchase your business for less than expected. During the due diligence process and even if the bidder has signed an NDA, sensitive information will be disclosed to the bidder who may work for the company in the future if it is sold to another buyer.

Selling a good old business. With the right broker on your side, this exit strategy can prove effective for many business owners looking to sell.

Benefits: By working with Key Business Brokers, you gain access to our extensive network of qualified buyers and professional connections, as well as nearly 90 years of industry experience, knowledge and more (so you are in good hands!). Our goal is to attract more inquiries from qualified buyers. We limit this to a few quality buyers, all vying for deals. This creates competition and thus leads to the highest possible demand for the company.

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Disadvantages: As with all commercial sales, fluctuations in marketing, competitors and customer demand will affect your sales price. It is important to understand the company’s sales process and plan accordingly (interview with

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