Accounting and Finance

Finance, Taxation, Insurance and Accounting related articles

Back when real estate wasn’t as expensive, multipliers weren’t as high and banks didn’t care as much about serviceability as they did security, buying a lot with a business all worked without much of an issue. That has changed (noticeably for high value real estate with shorter term management rights agreements), which has led to us receiving lots of requests from clients about separating their lot from their management rights business.  Every management rights business is different. There are no hard and fast rules, but in general terms, these are the issues that come if you want to consider doing breaking that link. Let’s startRead More →

Contributed By: Mike Phipps Finance on

As some of you will no doubt have figured out by now, I have a weakness for cars.  Old cars, new cars, fast cars, slow cars, even electric cars and the occasional motorcycle. I am fascinated by cars and the auto industry. This basic flaw in my good judgement has led to me investing wisely in a few vehicles, much to the dismay of the managing director.  By wise investment I mean spending more than said vehicles will ever be worth and then justifying the “investment” by grossly overinflating the values when debating the matter with my accountant, bank manager and afore mentioned MD. MyRead More →

Contributed By: Mike Phipps Finance on

Before you read any further it’s important that you take the time to dial up Bobby McFerrin on You Tube and get into the reggae groove.  The following will simply not work otherwise! Here’s a little song I wrote You might want to sing it note for note Don’t worry, be happy Some say credit crunch I say bugger that, let’s do a long lunch Don’t worry, be happy In your loan application, there is some trouble Royal Commission might make it double Don’t Worry, Be Happy Ain’t got no cash or equity You can always call on me Don’t worry, be happy. With apologiesRead More →

Contributed By: Mike Phipps Finance on

I trust this letter finds you well.  Please forgive me for not writing earlier but I have been meeting clients all weekend and every evening. Thanks so much for your recent correspondence albeit at 950 + pages I must confess I have not read the entire document in detail.  Sufficient to say that what I have read, particularly in relation to finance brokers and mortgage brokers troubles me, not least because your findings seem to reflect a lack of understanding of what it is that finance brokers actually do. How could this be I wondered? Surely the many days that you and Rowena spent imbeddedRead More →

Contributed By: Mike Phipps Finance on

We have talked in the past about our view that we are moving into a tighter credit environment in which bank lending guidelines will become stricter. We also talked about challenges existing borrowers are having with annual business loan reviews and extended interest only periods. I am less than delighted to announce that for once our predications have come to fruition.  Daily feedback from borrowers suggests that times are indeed becoming challenging both for new borrowers and for existing operators. To be frank some of the concerns raised with us are of the borrower’s own making and reflect a lack of understanding of the termsRead More →

Contributed By: Mike Phipps Finance on

By the time you read this the holiday season will be behind us (mostly) and 2019 upon us. As always, a time to reflect and give thanks that the MD continues to put up with me and my children still remember my birthday. And what a funny old year 2018 turned out to be. Poor dear Malcolm gets the bums rush, The Donald is still in the White House, the Aussie cricket team can’t even get cheating right, the cash rate remains lethargic and people are still borrowing for business. In 2018 I started to notice two significant trends in Australia which I am goingRead More →

Contributed By: Mike Phipps Finance on

Irony: noun; the expression of one’s meaning by using language that normally signifies the opposite, typically for humorous or emphatic effect. I’ve got this mate, well, more a long term acquaintance really. Known her since I was in my teens. Purely platonic relationship over the past 40 years and we still catch up regularly to this day. She was pretty popular back in the day and had most of the local boys tied in knots. Even after 40 years she’s still a very attractive lady, super intelligent and very professional, at least to the casual observer. She’s had an interesting life and recently called me to seeRead More →

Contributed By: Mike Phipps Finance on

Bob Was Right The Stones said time is on our side.  Prince said it was a sign of the times. The Foo Fighters said times like these. Bob said it best Come gather ’round people Wherever you roam And admit that the waters Around you have grown And accept it that soon You’ll be drenched to the bone. If your time to you Is worth savin’ Then you better start swimmin’ Or you’ll sink like a stone For the times they are a-changin’. Bob Dylan , The Times They Are A Changin’, 1964 Life moves pretty fast and, as Ferris Bueller wisely noted, if youRead More →

Contributed By: FNX Finance Group on

Today we present the fifth in our series of analysis on the selling market for Management and Letting Rights (MLR).  We have been collating this data quarterly since June 2017 and the following is a broad summary;      – Stock levels continue their growth which commenced in January 2018.  There is now $1b of MLRs on the market.      – This has largely been in the Permanent and to a lesser extent the Corporate space.      – The average listing period of all buildings has been 71 days in the last quarter.  With an additional 90-100 days to complete settlement.      – There is about 0.2x lower multiplier for Standard AgreementsRead More →