Some of you may recall the Beatles song titled When I’m Sixty Four, one of the first love songs written by Paul McCartney when he was just 16 years old. This is a song from a lover to his partner about their future life together, painting a beautiful picture of a happy marriage. But when it comes to splitting finances at the end of a relationship, perhaps a more poignant song, from an older, wiser McCartney would be Yesterday – “Suddenly, I’m not half the man I used to be.”
While almost everyone envisions that when they get married, they will stay married forever, separation and divorce is becoming more common. With the commencement or the breakdown of a relationship, many people will query and have concerns in regards to assets. They may have entered a relationship at a point in their life when they have already accumulated valuable assets of their own, or they may inherit valuable assets from their parents or family. Will they lose half of their assets in the event of separation? The short answer is – well, that depends.
You should be aware that from the day you marry, both parties automatically acquire entitlement to each other’s assets. In a de facto relationship, this entitlement will only occur after you and your partner have lived together for a minimum of two years. While other criteria can apply, being aware of these fundamental points can help you plan accordingly to avoid any confusion and ultimately any major financial setbacks in future.
Article written by Nicholas Pastro, Lawyer
Say Hello To A Mortgage Broker
As a local Heidelberg resident and avid follower of the Banyule real estate market, we asked Jarrod Hodges of Hawthorn Finance a few questions about the services offered by mortgage brokers and the finance market in general:
How do Finance Brokers get paid?
In general, finance brokers are paid an upfront and trailing commission from the lender that is chosen by the client. Commissions vary slightly between lenders but are generally around 0.66% of the loan amount, whilst trailing commissions are generally around 0.165% per annum of the loan balance. In most instances finance brokers don’t charge the client a fee for their service as they receive a commission from the lender.
Is the interest rate paid by the client loaded to cover the commission payment?
No. Finance brokers can generally source more competitive rates than clients dealing directly with a lender, as the client is leveraging the purchasing power the broker possesses. For example an individual may borrow $500,000 for a home loan with a bank, however the broker maybe writing $5,000,000 in loans with the same bank and can therefore leverage a higher discount than the individual borrower.
What are the main differences between variable and fixed rate mortgages?
Variable rate mortgages broadly move with changes in the RBA cash rate. On numerous occasions however the lenders have withheld some of the cash rate reduction to recover increasing funding costs. Under a variable rate mortgage, clients can make unlimited additional repayments at no cost, whereas fixed rate mortgages have restrictions on the amount of additional repayments before you incur a fixed rate break fee. Typically variable rate mortgages are popular due to the flexibility they provide with additional repayments, whereas fixed rate mortgages suit those who prefer to know with certainty their monthly cash outflow.
The Big Issue Community Cup
On Wednesday 3 August 2016, I volunteered at the Big Issue Homelessness Person’s Community Cup. The event took place at the North Melbourne Community Centre, with a number of organisations participating in a “World Cup” style tournament.
The day was organised and run by The Big Issue Community Street Soccer Program which is one of several initiatives run by The Big Issue organisation, to promote social inclusion and personal change for homeless, marginalised and disadvantaged people. The Community Cup is just a small part of the broader aim of the organisation, which strives to provide people with the support and tools necessary to help them make positive changes to their lives.
The event was a great success with a solid showing from members of other not-for-profit organisations such as Ozanam House, Ozanam Community Centre, Quin House, Launch Housing, Northern Hub Vincent Care and the Big Issue Women’s program.
I took part in the event teaming up with members from the Northern Hub Vincent Care team, refereed some games and met some friendly people from different walks of life whom I hope to keep in contact with. The day provided an opportunity for people from various backgrounds to come together to enjoy and celebrate values such as friendship, respect, unity and leadership.
For more information on The Big Issue organisation, check out thebigissue.org.au.
Article written by Nicholas Pastro, Lawyer
JPLegal @ All’antico
We love supporting local businesses. This newsletter we are featuring All’antico, one of our favourite eateries! We asked them a few questions about why they chose Heidelberg as a location for their business.
Heidelberg is the perfect match for our family run Trattoria, as we have lived and worked in the area for over 20 years. Heidelberg has a rich artistic history, with a reputation of embracing all cultures.
As our kitchen promotes the food from our Southern Italian heritage, we are lucky to be situated in such an iconic suburb of diverse appeal. People from all corners of the world come together to create an exciting precinct to live, work and most importantly, eat.
We were inspired to create a true family run trattoria where three generations now work together. Teresa, chef and owner, her son Carl and Nonna Maria, give an authentic Southern Italian experience to Heidelberg.
Teresa Oates is the co-author of two award-winning cookbooks, Mangia! Mangia! The restaurant is a manifestation of the spirit of her books – a place where the dishes served, spring from the pages onto your plate. The weekly changing menu is influenced by the seasons and real home style cooking from Nonna’s kitchen.
Next time you want to mangia traditional Italian cuisine, visit Teresa, Carl and Maria at All’antico 94 Burgundy Street Heidelberg.