There was some interesting news for doctors in this weekend’s Australian Financial Review. Please find below a brief summary of how various news items affect doctors.
High-end property harder to finance
Banks are starting to enforce stricter lending terms and conditions for multimillion dollar properties. These types of property deals will be more closely scrutinised, which may force buyers to come up with bigger deposits, and which may make refinancing from one bank to another more difficult.
If you are a doctor and you are purchasing or refinancing this type of property, you should seek advice from a finance specialist beforehand, to make sure you look at all the options.
The 30% Division 293 tax to cost many doctors over $100,000 in lost super
It is estimated that more half a million people will be slugged with 30% contributions tax within a decade, because of the flagged reduction in the Division 293 threshold to $250,000. Many doctors will unfortunately find themselves in this group. Rice Warner estimates that those affected may lose up to $150,000 in super savings over a 20-year period.
It is important though that doctors do not make a knee-jerk reaction and jump into high-risk tax-driven strategies, but rather seek professional advice.
Interest rates are set to rise
Whilst there is no immediate danger of a rise in the official interest rate, there are some signs that rates may be on the way up next year.
As doctors typically carry high amounts od debt, now would be a good time to look at your finance structures and facilities in a holistic way and plan ahead.
For regular financial updates and news for doctors, please subscribe to our mailing list at www.affluenceprivate.com.au.
As I understand your time is extremely valuable and scarce, I am able to offer flexible meetings times, including outside business hours and during the weekend. I can even come and meet you somewhere convenient, or talk via videoconference on Skype.
My first consultation is free. I allocate up to 90 minutes to discuss your personal circumstances and to establish how I may best assist you. Where you already have an existing adviser, I would be happy to offer a second opinion. I always quote a fixed dollar fee before we start working together.
Please contact me on email@example.com or call me direct on 0432 885 295. You can follow me on Twitter @YvesSchoof or connect with me on LinkedIn to receive new articles.
Yves Schoof and Affluence Private Wealth are Authorised Representatives of Synchron, AFS Licence No. 243313.
The information posted is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs.
Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making a decision.
Latest posts by Yves Schoof (see all)
- Groundhog Day – A Debt Warning For Doctors And Dentists - 18/09/2019
- Free Investment Video Course - 11/09/2019
- What Are Australian Doctors’ Principal Goals? - 04/09/2019