Managing Rental Property

Managing rental propertyMany first-generation yuppies have come to realise that they need to enter the property market. However, most of them find that getting a home-loan of between R1 500 000 and R2 000 000 is not always possible.

The creative ones usually find a way around this dilemma by purchasing a home in the R300 000 to R700 000 price range. The home is then used to generate a rental income. The rental is often sufficient to cover their bond repayments. This leaves many of them happy landlords.

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Financial Planning for Women

Financial planning for womenMost women take on the role of caretaker in their family unit. This makes them more inclined to tend to everyone else and their needs first. Often to the detriment of their own.

One area that sees the most neglect is financial planning. When analysing a married couple’s Financial Needs (FNA), a good financial planner will work on the assumption that the marriage will end, whether because of death or divorce. Both these outcomes must be taken into consideration. Unfortunately, the female often comes off as second best. Continue reading

Knowing when to ask for help

House soldAt Northwood financial services we have a panel of dedicated professionals that assist us and our clients with a host of different issues.

Recently I received an email from a home-owner. Having sold his property, he is now struggling to get occupational rental from the buyer who had taken early occupation. In this instance, it is much harder to help. Continue reading

Junk Status – Protecting your investments

Junk status - investmentsEver since the news broke that South Africa’s credit rating was downgraded to junk status, our office has been inundated by calls and emails from concerned investors that listen to Finance 101 on CCFM.

Most of these investors have investments with insurance companies, and experienced a significant loss of their investment capital. However, investors with Passive Investments reported the highest losses.

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Detailing our Fees-Based Model and Upfront Fees

Members in the financial planning and advisory industry have two different means of earning an income.

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The industry standard – appropriated by most financial planners – is a commission-based model. With this, the financial consultant meets with the client, assesses the client’s needs requirement and then suggests and sells various policies to them. As the financial consultant works on a commission-based model, they will not earn an income in the event that no sale is made on behalf of the client. With this, there is a more aggressive approach to the selling of policies, and more often than not, the client will be heavily encouraged to buy a policy.

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South Africa’s Best and Worst Insurance Companies

The Office of the Ombudsman for Long-Term Insurance is an independent body to which consumers can complain if they believe they have been treated unfairly by their insurer. In the latest annual report, it is stated that the Ombudsman had recovered R184.4 million in the form of lump sums for consumers from long-term insurance companies.

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The Ombudsman said it had received 9,815 written requests for assistance – which is an increase of 6% from the previous year. Of these complaints, 5,018 were chargeable complaints, with 3,491 cases full cases finalised. Three in 29.8% cases were resolved in favour of the complainant.

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