MORTGAGE STRESS BE BUGGERED

It’s a common problem across Australia and it’s on the rise!

On 21 September 2011, Bloomberg and numerous others reported that a quarter of households were experiencing mortgage stress, up from 21 percent in March. This info was gleaned from the September Homebuyer Confidence Index compiled by “Genworth” which as you may know, is Australia’s largest mortgage insurer (i.e. they cover lenders whose clients default on their payments so you’d be right in thinking they like it best when things are healthy so that they’re not paying out claims by the banks and other lenders).  Genworth’s recently appointed CEO Ellie Comerford, recently made the point that as for Australia’s housing outlook, that Australians are still keen to buy but they are being far more cautious about debt. ”Yes, Australia is a patchwork economy and, yes, there’s a glimpse of an increase in unemployment but, on the fundamentals, we’re in a pretty good spot. But until consumers believe it, if they don’t have to borrow, they won’t.”

I think she’s pretty accurate in her assessment of consumer sentiment. What do you think?

To consider the RBA dropped rates this month and looks probably set to do it again and probably even again.

Nonetheless however, general cost of living pressures are rampant and uncertainty is everywhere.

Business is concerned about the impending  carbon tax, the euro zone is in deep sh#t and the patchwork economy she mentioned isn’t much fun unless you’re somehow plugged into the mining boom.

So what’s the average person to do?

Now put your thinking cap on and listen up good as I say it’s best to take positive action rather than to continue watching from the sidelines in the hope things will improve anytime soon and besides, why let your destiny be controlled by others?

Now is surely as good a time as any to start any one or more home based businesses as either your full time concern or on the side of whatever else it is you do for a living because in so doing, you immediately become a business owner at the lowest possible start up cost and the great thing then is that businesses can deduct their legitimate expenses whereas by comparison, wage earners barely get a look-in as the poor cousins of the tax system.

Accordingly, your business is entitled to be operated from somewhere permanent and dedicated other than for example the kitchen table, the lounge room, the local coffee shop or from the back of a ute …  da – da - enter the family home as a part business asset!

Considering you need a roof over your head anyway and that along with it comes all the expenses of purchasing and maintaining the place, well then why the heck wouldn’t you want a tax deduction on a huge part of all those unavoidable outgoings?

And as for capital gains tax, that’s only paid by numskulls who don’t know any better!

So if your mortgage is getting you down, get off your butt and start a home based business doing whatever you like.

Depending on your situation and business structure, the tax deductions you’ll conjure can be used to either reduce your other taxable income (most likely from your job) or, to set off the home based business income of itself and if the business unfortunately isn’t profitable in any current year, you can always carry the loss forward and use it up in part or in full when it is profitable (kind of like deductions in a special savings account the tax man sets up for you).

Like most things, it’s complicated when you don’t know what you’re doing yet simple when you do.

I’m here to help so don’t hesitate to call and in a few minutes over the phone, I can let you know if this can work for you or not – I have it down pat!

Make It Good Debt!