Loose Change
Sydney Morning Herald
Wednesday August 25, 1999
Wise up
Don't know an overdraft from being over the limit? The credit union movement has released a handy booklet, Credit Where It's Due, to help customers understand basic loan products. As well as information on the different loan types, there's useful information to help you manage your debt better, including legal guidance, tips and a personal budget sheet. Try the quick quiz to see whether you use credit wisely. The booklet is free if you call 13 11 28. Annette Sampson
Charge!
It's not just Australian banks that are pushing up fees. A recent report in the Los Angeles Times reveals Americans could soon pay more in credit card charges than they spend to insure their homes. It says US credit card fees have risen 160 per cent since 1994 and most of the growth is coming from a rise in late-payment fees and over-the-limit fees.
Average over-the-limit fees, which are charged when customers exceed their credit limit, have nearly doubled, from $12.50 per violation in 1994 to $23.50. Average late-payment fees are $24 per violation.
Mind you, US credit card interest rates have also fallen dramatically, with some cards offering rates as low as 7.99 per cent. Which is more than can be said for the cards offered here. AS
Perfect match
For less than $2,000, new real estate site finders.keepers will search for and buy you a home. The company is independent of any selling chain and aims to find a perfect property match for its clients across a full range of available properties.
"When it comes to shopping for real estate, people are sick of giving up their weekends for several months and still not finding what they're looking for," says Lisa Bradley, the licensee in charge of the company.
As well as searching for properties, the company will bid at auction and negotiate the purchase price on behalf of the buyer. Find it at www.finderskeepers.com.au
Perrie Croshaw
The US and us
The Sydney Futures Exchange has opened up its market to global trading by being the only exchange in the Asia Pacific region with trading terminals in the United States.
It says this should increase the audience for its futures and options contracts.
PC
Online information
Another financial information service has come online with the launch of StockHouse.com.au.
Online investors will be able to track their portfolio, read brokerage reports, analysts' comments, stock quotes and the latest company announcements as well as archived news. The free service is available from the Zurich Financial Services Australia Web site. PC
Oz car loans
First it was loans for homes, now it's loans for cars.
Oz Credit, the brainchild of 30-year-old Brad Dale, is hoping to become the Aussie Home Loans of the car loan market.
Oz Credit says it is offering fast loan approvals (usually within the hour) plus additional services such as valuation inspections, title checks, warranties and insurance to car buyers. AS
Long-term equity fund
Self-managed super funds looking for a long-term investment with that bit extra are the target of a new private equity fund from Macquarie Life Ltd.
The Macquarie Private Equity Multifund is limited to DIY super funds and allows them to invest in an institutional "fund of funds" accessing seven private equity managers with 72 investments.
Macquarie hopes the new fund will outperform the Australian sharemarket by 4 to 5 per cent after fees. However, it emphasises the life of the fund is about 10 years and investors should expect to lock in for this period.
The minimum investment in the new fund is $30,000 and Macquarie is hoping to raise $30 million to $50 million. AS
Categorise and compare
Proponents of the AAPR (average annual percentage rate) method of advertising home loan interest rates were dealt a blow last week when a meeting between Consumer Affairs Ministers voted against expressing home lending rates this way.
Wizard Corporation and NSW Home Loans, have been pushing for the introduction of an AAPR for some time.
The managing director NSW Home Loans, Tim Holmes, says the ministers agreed in principle that the total disclosure of a comparative rate was a good thing, but that they believed there were shortfalls in the proposed methodology for its calculation.
However, Aussie Home Loans believes there are more pressing issues to consider.
"The first being products' definitions and misrepresentations of no-frills lending products and rates for products which are not similar," says managing director John Symond.
"It is wrong for interest rate charts and tables to be published comparing rates, without identifying the type of category of each product," he says.
"Loans need to be categorised before an AAPR is applied to them." Leeanne Bland
© 1999 Sydney Morning Herald
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