Comments for Ask Josie Kay

Comment on I am separated and never received First Home Owner’s Grant. Do I qualify? by admin

admin — Fri, 15 May 2009 05:02:16 +0000

Anne - completely agree. Thanks for highlighting to us that the Kiwis can double dip. I will look into that one. The problem with grants, people get used to them and the lobbyists do a brilliant job scaring politicians that if they dare change it, they will lose votes. I will also not hold my breath. Josie

Comment on I am separated and never received First Home Owner’s Grant. Do I qualify? by Anne

Anne — Wed, 29 Apr 2009 08:59:16 +0000

I do beleive that to make it totally fair for everybody, serious changes need to be made to the first home owners grant.
My husband and i bought our first home in 1994 and the grant was’nt available to anybody then, so we never received a grant, however if we sell or rebuild, …because we are homeowners now are still not entitled to the grant…
Yet some people are receiving grants from first home owners grant in new zealand, building, leaving new zealand, moving to australia receive the grant again from australia and becoming homeowners again
Totally unfair, when our own residents miss out totally with no chance of ever receiving a penny from this grant ever.
I would like to see that people who never received the grant, could still apply to either help pay their mortgages or who are looking to re buy another home and would be considered seriously, because they simply missed out.
Here’s hoping, but not holding my breath.

Comment on Help! I have lost my super. by Josie Kay

Josie Kay — Thu, 19 Mar 2009 07:18:51 +0000

Hi Laurel

Many thanks for your excellent question. Basically crystalise means your loss (or gain) is real, rather than just on paper.

Most people are familiar with property, so I will use it as an example. Let’s say you bought a house a few years ago for $600,000, and now you decide you want to put it on the market for $700,000 because it was recently valued at this price. However, Mr Tightwad, your potential buyer does not want to pay you $700,000, he only wants to pay you $500,000. Because things are tight, you decide to accept a loss of $100,000 and sell it to him for $500,000. Money exchanges hands. As a result you no longer own the asset, therefore you have crystalised your loss (i,.e. you have lost $100,000). If you tell him to go away and decide to hold on to your house until you receive the price you want, your loss is not real - no money has exchanged hands. You still own the asset. We call this a paper loss.

This is basically what happens in your super fund. You own the units and only if you decide to redeem your current investments will you crystalise your loss e.g. you are currently iinvested in the share fund and decide to switch to cash. You no longer own units in the share fund and now own units in the cash fund. You have crystallised your loss (wish I could say gain). If you hold, you are hoping the price will go up. Therefore, the loss is only on paper.

Hope that makes sense. Don’t hesitate to write again, if it doesn’t. I will try to find another anology.

Wishing you all the best for the future.

Cheers

Josie Kay

Comment on Help! I have lost my super. by laurel

laurel — Tue, 17 Mar 2009 10:57:49 +0000

with superannuation please explain to me what is christalize mean. if i am down $40.000 at end of financial year in my rest superannuation does this completly get wiped off my super amount in money terms and that money is lost completly forever, please explain this crystalize in laymans terms as to understand

Comment on I am separated and never received First Home Owner’s Grant. Do I qualify? by Josie Kay

Josie Kay — Wed, 07 Jan 2009 04:11:59 +0000

As your husband previously owned a home, it is my understanding that you will not qualify for the first home owners grant. The First Home Owners Grant is administered by each of the States. If you go to this website - http://www.firsthome.gov.au/ you will find all the relevant information.

The most important thing about buying a home is to ensure you can afford it. As a guide, repayments should not exceed 30% of your net income. Also, a good idea to base it on one wage, as nobody can guarantee you will both keep your jobs (also you might want to stay home for a while and not stress about keeping the bank off your back).

Good luck

Josie Kay

Comment on I am separated and never received First Home Owner’s Grant. Do I qualify? by eli bintoro

eli bintoro — Mon, 05 Jan 2009 08:37:50 +0000

I’m 34 old and my husband buy unit before merried whit me and now the unit already seling on november 2008 and now we have planing to buy unit together my question am i entitled for the grant?

Comment on Superannuation Warning - “Is your employer paying your superannuation” by Josie Kay

Josie Kay — Tue, 16 Dec 2008 00:44:23 +0000

Dear VW

I can understand why you must be so frustrated with the whole system. It is a joke. If your employer went into liquidation, then obviously there is no money left to pay outstanding superannuation liabilities.

The lesson here is to check on a regular basis (at least every three months) that money has been contributed to your superannuation fund. This is easily done these days via the internet. The longer you leave it, the harder it is to extract dollars out of them. Although, I acknowledge it is not foolproof.

I wish you all the best in your future endeavours.

Josie

Comment on Superannuation Warning - “Is your employer paying your superannuation” by VW

VW — Fri, 12 Dec 2008 13:32:54 +0000

When I found out my employer was not paying my superannuation, I rang the ATO - and they did nothing about it.
My employer went into liquidation owing me thousands in superannuation.
I again rang the ATO who told me that if they prosecuted every employer in Australia that was not paying superannuation, they would send the companies to the wall, and so they do not prosecute.
I took the matter up with my local member, who then had the matter addressed in parliament (under the Howard govt at the time) and received a letter back stating they could do nothing about it.
I wonder is there any point in reporting them if even parliament cannot intervene.

Comment on Save big $$$ on hire car excess insurance - Money Tip without the Boring Stuff by Alan Durston

Alan Durston — Mon, 01 Dec 2008 04:46:05 +0000

Thank you very much Josie Kay we were driving down to Nerang from Canungra when my wife switched the radio on. We do a lot of domestic travel now that we are retired and we always fly to our destination then hire a car from Eurocar. I have been with them since they have started because I worked for the Defence Dept and Eurocar have a contract with them. Although I do enjoy a reasonable discount the insurance was always the most costly. Now that you have informed some of us dim witted Grey Headed Nomads I will be taking your advise it will save us heaps.
Many thanks Alan & Caroline

Comment on Financial Planning Factories - Money Tip without the Boring Stuff by San Francisco Certified Financial Planner

San Francisco Certified Financial Planner — Tue, 04 Nov 2008 00:33:14 +0000

Yes - one needs to be very careful when looking to hire a Financial Planner. First of all, find one with credentials so you know they have appropriate education and experience. Certified Financial Planners can be a great way to go. Also, Personality fit is often an over-looked factor. You want to make sure that you share the same basic philosophies with your planner. For example, if your planner is going to insist that you cut out your lattes each day, but you find them to be a $3 slice of heaven, you may not agree on larger issues either.