Education Newsletter September 2010

Hello, Welcome to this month's email newsletter. If you have any loan queries please give me a call. Cheers, Terry Choosing a real estate agent You take your time to find and keep the services of a good plumber, a lawyer or an accountant. As your home is probably your biggest asset, selecting the right real estate agent should be even more important. Believe it or not, the biggest billboards or the loudest print ads may not equate to the best agent – certainly for your requirements, anyway. Interview the agent When you select a real estate agent, the situation should be viewed as though you’re performing a rigorous job interview. After all, you’re selecting someone to perform a job – for you! When it comes to selling what for most people is their biggest asset, your expectations should be demanding. Perhaps surprisingly, most of us do not select real estate agents on the basis of recommendations from friends or colleagues. It is the advertising ability of an agent or agency that usually draws us in. You might have experienced a good agent at an open home you’ve attended, or you might be pulled in by those advertisements; these days, the internet is a major search tool when it comes to locating agents. At the very least, agents should portray a high degree of professionalism and dedication for their work. Does the agent you’re investigating appear interested in your property – or is it just another one in a line of many they’re hoping to nab as ‘a listing’? Desirable qualities So what attributes should you be looking for in an agent? Some of the qualities should include: Recognising what your actual requirements are. We live in a marketing directed world where serving the customer, not oneself, is the directing force. Professional designation and membership of the Real Estate Institute in your State. Always remember, the agent selling your property works for you, not prospective purchasers. References from previous clients. Knowledge of the area in which you’re selling your property. A realistic familiarity of the price range in which you want your property to sell. Ask good questions When selecting an agent, formulate a list of the questions you will need to ask your shortlist of prospective interviewees. What is your experience as a real estate agent? Are you employed full time or part time as an agent? How long have you worked this particular location? How many property sales were you involved with last year? Do you normally represent buyers or sellers? How many properties do you currently have listed? How many prospective buyers approach you? What do you perceive your personal strengths are as a real estate agent? What do you think our property is worth in the current market and how did you arrive at that figure? Which marketing strategy do you suggest is the best one to pursue for our property? Things to remember Remember, your chosen agent should provide you with: Access to recent market sales data in your area. Contact with a large number of buyers. Advice on how best to market and present your home. The ability to negotiate the best price to you with buyers. This article was reproduced from http://www.realestate.com.au/ Ease the Pain Each year the cost of private health insurance goes up, often by considerably more than the general rate of inflation. Here's a few tips designed to help you reduce your costs and ease the pain. April is not a great month for private health insurance customers. It’s when insurance premiums are hiked and this year was no exception. The federal government approved an average 5.8% rise in private health insurance premiums from April 1 - significantly higher than the rate of inflation. The government justified the hike saying it was lower than last year’s increase (6%) and lower than industry expectations. But this means nothing to families who have to find the extra money, estimated as an extra $200 a year. Premiums have risen by 73% since 2002 according to http://www.iselect.com.au/, which compares health insurance premiums. There might not be anything you can do to stop ever-increasing premiums. But you can look for ways to cut the cost of your insurance rather than just accepting it or opting out of private health insurance altogether. Pay only for what you need It makes no sense to pay for obstetrics and IVF if you are in the mature stage of your life, according to Canstar Cannex. The same applies to a young person paying for hip replacement cover. So start by looking at your existing policy and whether it can be restructured to result in lower premiums. Ask your insurer to help you work out what cover you can remove to help reduce premiums. Your needs change as your life progresses so it’s worth reviewing this regularly. Choose a higher excess Most policies will charge you either an excess or co-payment when a service is provided. The higher the excess or co-payment you choose, the lower the premium is likely to be. You’ll generally have to pay the co-payment every time a service is provided, but an excess may be charged each time you go to hospital in a year or only once. Make sure you find out which one applies to you. This strategy may well suit a young, healthy person who does not envisage regular trips to hospital, whereas an older person may not want to take that risk. It’s important to choose an excess that you will be able to afford - otherwise it’s a false economy. It is also worth noting is that to avoid the Medicare Levy Surcharge, you must not choose an excess greater than $500 for individuals and $1000 for couples/families. Shop around You might be surprised when you compare policies and insurers. You may get the same cover for less or more cover for the price you currently pay. If you decide to switch, double check what waiting periods may now apply with your new insurer. Pay in advance There’s no escape from health fund fees going up every year, but if you pay early you may be able to dodge this. Most health funds will allow you to pay a year’s health insurance premiums in advance to lock in the previous year’s rate for the next 12 months. In most cases, to lock in the cheap health insurance premium you will need to pay early in the year, around January or February. Start young Starting young can save a lot of money on premiums. If you’re privately insured before June 30 of the year you turn 31 you will be on the lowest premium rate for life. From age 30 you will have to pay an extra 2% for every year you remain uninsured. So, for example, if you wait until you’re 40 to take out private health insurance you’ll pay an extra 20% - and if you wait until you’re 45 you’ll pay an extra 30%.