How to avoid settlement delays

first_imgBrisbane first homebuyer Joel Binfield found the property settlement process very confusing at first. Picture: SuppliedA MASSIVE 80 per cent of buyers don’t understand how the property settlement process works, raising concern over the potential for delays in homes changing hands.A GlobalX survey found that four in five buyers were “stumped by the settlement process” — steps which experts said were precise but uncomplicated.The findings came after the conveyancing technology firm surveyed legal professionals to find out how much Aussies buyers understood about the settlement process.It found the results concerning: “Property buyers are suffering from a serious lack of ‘know-how’ when it comes to property settlement.”Given the obsession that Australians have with the property sector, it was interesting that buyers did not fully understand how to close out the process, said GlobalX chief executive Peter Maloney.“As a country, we see property ownership as ‘the Australian dream’, but it seems those who dream about owning a home don’t recognise the importance of properly understanding the process.”If they did, he said, they could avoid unnecessary hold-ups simply by conducting proper due-diligence and having all the required documents.“Don’t be afraid to ask your lawyer or conveyancer to explain things to you more than once and ask plenty of questions,” he said. FREE: GET THE COURIER-MAIL’S REAL ESTATE NEWS DIRECT TO INBOX Brisbane first homebuyer Joel Binfield who bought an apartment in Fortitude Valley last year, agreed the settlement process was very confusing at first.“We were buying in Fortitude Valley and I had to make sure we were prepared for all of the necessary paperwork.“It can make it even more stressful because if we were missing even one document it could have set the whole process back.”He advised those heading towards finalising their real estate purchases — first timers especially — to do a lot of research into the settlement processes.“We were lucky enough to have a great solicitor on board who answered all of our questions,” he said.More from newsParks and wildlife the new lust-haves post coronavirus19 hours agoNoosa’s best beachfront penthouse is about to hit the market19 hours agoAmong compulsory steps GlobalX recommended buyers tick off were local government searches, building and pest inspections, and pre-approved financing.As well as that, the Queensland Government advised that buyers “conduct a pre-settlement inspection no more than a few days before settlement day. If it isn’t in good condition, they can ask their lawyer to delay settlement until (the seller) fix(es) the problem.”It said settlement day could “be whatever length of time you negotiate” ranging from 30 to 60 days — though most commonly it was four to six weeks after the contract was signed.As well, it advised that the seller was responsible for paying council rates and other such fees up to and including the day of settlement, with the buyer taking over the day after.A Property Exchange Australia and PricewaterhouseCoopers report last year found that one in five residential property settlements were delayed because of human error in documentation such as a missing signature. WHAT HAPPENS ON SETTLEMENT DAY?• Buyer hands over the remaining amount of the purchase price• The title of the property is transferred• The keys and possession of the property are handed over to the buyer (Source: Qld Govt) FOLLOW SOPHIE FOSTER ON FACEBOOKlast_img read more

Turkey’s Garanti Pension to launch commodity, global equity funds

first_imgGaranti Pension and Life, the largest pension insurance company in Turkey in terms of the number of pension savers, is planning to launch new funds investing in commodities and international equities.Cemal Onaran, managing director at the TRY4.6bn (€1.3bn) firm, told IPE the new funds would be launched within the next four years.“Our foreign stock market investment fund will most likely invest in both developed markets such as the US and Germany, as well as in emerging markets like Brazil, China and Russia,” he said.“This will respond to the need for alternative investment vehicles, provide tool for diversification away from the domestic risks and vulnerabilities.” Most pension fund assets in Turkey are at present invested in T-bills and Turkish government bonds (59.83%), which lost 0.32% last year.The remainder of pension portfolios are invested in other investment vehicles (17.97%), stocks (12.87%), reverse repos (7.08%), foreign securities (1.24%) and money markets (1.01%), according to Turkey’s financial regulator (SPK).Turkish private pension investments pulled in an average total return of -0.76% last year.Onaran believes that, although Turkish investors still strongly prefer fixed income investments, equities will be the most rewarding instrument for pension funds in the long term.Garanti Pension has some 813,000 customers at present.“Until 2008,” Onaran said, “interest rates in Turkey were quite high, at around 25%, so the optimal strategy was to invest in money market or government bond funds.“From 2008 on, however, interest rates fell down to 7-8%, and investors started to demand higher returns.“This, as well as growing knowledge and experience on financial markets, is increasing interest in alternative investment vehicles such as foreign equity funds.”Garanti Pension is also planning to grow its overall exposure to equities, where it currently has some 13.5% of its assets.In addition, some 68.8% of Garanti Pension’s assets are invested in local fixed income, 9.8% in reverse repos and 7.9% in time deposits, foreign exchange fixed income instruments and commodities.“Already now, we allocate more funds to equities than the average firm in the market,” Onaran said.“We are planning to increase our equity exposure further, up to 15% of all assets in 2-3 years, and to 20% in the long run.“We will gradually increase the average equity ratio within our flexible and equity funds as the market prices test reasonably low levels.”last_img read more

What Jay Leno Can Teach You About Saving

first_img Post navigation Recently, Jay Leno retired from the Tonight Show (again). But don’t worry about him going broke anytime soon.The man has hundreds of millions of dollars in the bank, the result of a life-long financial plan that can work for you too, even if you’re not in line to host a late-night talk show on a major network anytime soon.During an interview with Jerry Seinfeld, Leno revealed his secrets to always making sure he had money in the bank — don’t spend it.Hosting the Tonight Show has earned him over $320 million, and he has saved every last penny of it.So what’s he living off of, exactly?Jay has a side job.Well, as it turns out, Leno still does stand-up comedy, and has been doing it non-stop, week in and week out, even while hosting the Tonight Show.That money, combined with endorsements, equals a cool $15-20 million a year.This is the money Leno uses to eat, live, and amass his giant collection of cars, trucks, motorcycles, and airplanes.Leno has been doing it this way since he was a kid. He always worked two jobs (in his case, a car dealership and a McDonalds), living off of the income from one while banking the other.Not only did this always ensure that he had money stashed away just in case, but it instilled a lifelong savings habit that he observes to this very day.He will very likely continue to keep his Tonight Show money saved, as he is still a full-time touring comedian.The only thing he doesn’t do anymore is appear on television five nights a week.We should take note of Leno’s savings habits, as it’s not something only multi-millionaires can pull off.Even when he was working regular jobs and struggling to make it in comedy, he was doing this. You can too.Yes, finding a job is difficult, never mind two, but it’s still doable.Manage two incomes for maximum savings.Once you do, take the money from one of your jobs and spend that. Pay your bills, buy your groceries, and just plain live your life.But the other job? Instead of treating it as disposable income or “fun” money, just stick it in the bank and pretend it doesn’t exist.You’d be shocked at how quickly it can add up.Even if it’s just a part-time 20 hour a week job at $10 an hour, that’s $200 (roughly $150 after taxes), stashed away every week.That, after taxes, would net you $7800 in savings per year.And in a world where anything can happen at any time, and every penny is precious, constructing a near-$8000 safety net is an incredible boon, especially since you’re doubling that every year you stay at that job or work a similar one.If for some reason, you’re unable to commit to an extra job (perhaps you’re salaried and always on-call at your job, or family situations make it impossible to work extra) there are still ways to earn extra income that can then go right into the savings account.Some suggestions:Freelancing on the Internet.There are countless websites out there that offer money for various services, such as creative writing, editing, copy, blogging, or Photoshop.Whatever your expertise, you’re bound to find many a site willing to pay for your help.And since it’s all online, you can do this at home, in a coffee shop, or anywhere else you can access the Interet.Investing.You don’t have to be King or Queen of Wall Street to build up a successful portfolio.Educate yourself on the basics of trading, invest a bit of money into a few reliable stocks, and any money you make can go right to savings.Rent out a room.If you have a spare room in your house, or space in an insulated basement, renting it out to someone can bring in several hundred dollars a month.Just make sure the person you’re renting it out to is reliable and can pay the rent every month (a couple meetings, plus a request of paystubs, should tell you all you need to know.)Whether it’s through a second job or a secondary activity, saving 100% of the income is easier, and more productive, than you might have imagined.You might not be able to amass a priceless automobile collection like Leno, but you will be able to live your life comfortably, knowing all your expenses are paid, food is always on the table, and your extra-hard work is keeping you and your family secure for years to come.Mary Hiers is a personal finance writer who helps people earn more and spend less.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window) Relatedlast_img read more