Blog

The Executive Director and sole shareholder of Crown Lending is Scott Parry.
Crown specialises in getting their clients cash flow working for them - which results in them paying off their mortgage in up to half the time!

Over the past 8 years Crown has shown Australians how to get their incomes working for them
in the best way possible in order to reduce the term of their home loan.

Crown Lending has featured in publications such as Asset Magazine,
Money Management Magazine, Financial Review, Adelaide Advertiser,
West Australian and the Sunday Times.

Benefits to YOU the Client:

• Having a personal private bank manager who helps YOU with your cash flow
management every pay cycle.

• NO CREDIT CARD DEBTS. It is a CASH BASED SYSTEM - Utilising a VISA DEBIT facility.

• It reduces your impulse buys such as ad-hoc purchases on credit cards.

• It reduces your “bad” Debt or non-deductible Debt faster - Getting your income working
for you rather it just sitting in your cheque or savings account doing absolutely nothing for you!

• There is monthly contact with you, keeping you accountable and helping you with your self discipline - just like a FREE personal trainer but for your finances!

• Annual Reports are sent detailing your progress together with information about how
you are on track to achieving your #1 goal - paying off your home loan!

• No Monthly Fees = $0
• No Annual Package Fees = $0
• No Money Management Fees = $0

• Better cashflow

Crown Lending completes a very comprehensive individual spending plan analysis with each client. These figures are then utilised to assist us with our techniques to reduce your debt. You are also
educated and shown the powerful benefits of having the LOWEST TOTAL COST HOME LOAN on the market.

The key to Crown Lending’s success has been the regular monthly contact with EVERY one of our
clients. We help our clients track their progress by keeping them accountable via cash flow
reports created and distributed to them regularly. The report shows all the transactions that have been made, but more importantly the amount of savings they have achieved.

The funding line for Crown Lending comes from NAB, as they have their funds held on trust for them with Perpetual Trustees. With a major bank funding line, the pricing and flexibility is similar to that of a retail bank product but with the value added service offering of monthly contact and support with a real focus on getting you out of personal (non-deductible) debt as quickly as possible.

Crown Lending has Professional Indemnity Insurance in place with AON and is also a member of the
Mortgage and Finance Association of Australia as well as being REGISTERED as an credit license holder with ASIC.

Hi again!

Remember when we talked about the problem with our education system is that it never thought about teaching us about the one thing that every single one of us is guaranteed to deal with each and every day of our lives ??
Money (Management & Budgeting)…

Just like budgeting your time, you need to budget your money also. Ever since we were young, we have been taught the importance and value of money, either directly or indirectly. But never taught how to manage it – we simply just learned our money management habits off our parents… and guess where they learnt it from? Their Parents !

Having good money sense in terms of handling your finances well with a good financial plan will help you a lot in empowering your financial life.

The Financial Web recently wrote, the first and most important step to effective financial planning is developing and implementing a spending plan. That, of course, sounds easy and even simplistic. But if it were so easy, do you think that so many millions of people would be as deeply in debt as they are? In its simplest form, budgeting simply means to live within one’s financial means. This is in sharp contrast to the prevailing lifestyle of “living beyond your means”. And how do you live beyond your means? Well if you have credit card debt then you have lived beyond your means…The tool, of course, is using credit cards. All your credit card debt says is “I’ve spent $x more than I’ve earned.”

CHALLENGE #1 – DOCUMENT YOUR SPENDING PLAN

As a bonus we have included your own spending plan to accurately track the flow of money in and out of your pockets. Just think about how much you earn per year and for how many years you’ve worked and you’ll be startled about how many dollars have flowed through your hands.
Please goto www.crownlending.com.au/spending-Plan.htm to complete a new Spending Plan online – this will email it to me directly!

If you need help, don’t hesitate to get in touch with our financial consultants at Scott@CrownLending.com.au

We look forward to hearing how you go!

Kind regards,
Scott Parry
CROWN LENDING - Founder
1300 882 981

Well with Australia heading into a recession the big question on everyone’s lips is –
“How Low Can Interest Rates Go ?”

As we know, interest rates have been used in the past to slow ‘inflation’ and consumer spending.
These two indicators have certainly had the brakes put on them lately due to the economic climate.

So what will the government and RBA do about interest rates if these two concerns have been cooled down over the past 12 months ?

I personally think that you will be receiving a 0.5% rate reduction before the end of July 09 and then another 0.5% rate reduction before December 09.

This will mean that your interest rate should be approx 1.00% lower than what it is currently at today.
Once again, I’m certainly not Nostradamus but I do feel pretty confident about the direction of interest rates for the next 6 – 9 months.

When the interest rates have actually reduced by the anticipated 1% - then I would start to think about looking at Fixed Rate options, especially fixing ONLY some of the loan so you can continue to get the benefits out of running your incomes through the loan.

One thing to be very careful of is your superannuation balance – keeping an on it is very important as you should want to know how much you’ve LOST over the past year. There are so many options out there for you that are going to give you better returns over the next few years!

I’d also like to thank you once again for reading this - it is an absolute pleasure having you onboard and we look forward to helping you SAVE & MAKE as much money as possible over the next few years!

Cheers

Scott Parry
Director
1300 882 981
www.CrownLending.com.au

Well hasn't it been an interesting week !!

The events of September 15 2008 in the USA markets are unprecedented in recent memory.
We are seeing more and more proof that the current investment model in America was not built to withstand a credit crunch, the likes of which we are currently experiencing.

The Dow Industrials index fell 449 points (or 4%) over night, as the US Government's $85billion bailout of American Insurance Group (AIG) amplified fears about the stability of financial markets and major financial institutions.

In an attempt to calm world financial markets Federal banks in the US and Europe are pouring liquidity into their respective markets. The Bank of England has agreed to extend its emergency lending program to counter worsening market conditions while the US Federal Reserve issues additional treasury bonds to increase liquidity within the market. We are now witnessing further consolidation within the financial sector as investment banks merge with commercial banks which hold substantial deposits. Lloyds of London have today acquired HBOS (who own Bankwest) and Morgan Stanley is investigating the possibility of merging with Wachovia Bank. Overnight Barclays Bank agreed to purchase Lehman Brother's North American Trading business as well as Lehman's New York headquarters for an estimated $2 billion.

The events of the past few days have only further highlighted that a sustained period of credit contraction is upon us. What we are now seeing is a systemic banking system crisis in the US. Stuart Fagg at ninemsn money comments that 'Australian banks did not join the rush into mortgage-backed securities with the same fervour of some of the US and European banks. The chances of Australian banks sustaining the losses of the size we've seen in the US are extremely slim'. With less borrowing taking place (due to the increased cost of credit) the road to economic recovery will be a slow and drawn out process.

While we are literally watching stock prices move on an hourly/daily basis, we must remind ourselves of the investment cycle and nature of investing. The returns seen over the 2003-2007 period were not only substantial but completely unsustainable.

Shane Oliver, Head of Investment Strategies at AMP Capital partners believes that 'we may see further downside in the next month or so, but our assessment is that a longer term
bear market in shares is unlikely".

The fundamentals of many Australian companies have not changed significantly over the past few weeks. The main driver of the market at present is fear, anxiety and panic rather than research, analysis and fundamentals. The average bear market (since 1970) has lasted 14 months; we are currently 11 months into this downward trend.

The average annual bear market loss is 29% and we are currently down over 30%. Conversely the average bull market duration since 1970 has lasted 42 months at an average gain of 27.5%.

Sources:
Alexandra Twin - CNNMoney.com
Byron W. King - The Daily Reckoning Australia
Marcus Padley - marcustoday.com.au
Shane Oliver - Head of Investment Strategies - AMP Capital Investors
Stuart Fagg - money.ninemsn.com.au
Tom Bignill - Head of Equity Markets - Next Financial Ltd

If you have any questions, thoughts or fears I'd be happy to help out and try to answer them for you.

All the Best,

Scott Parry
Director
Crown Investment & Financial Services
1300 889 310

I'm sure we've all at some stage had a brilliant idea or two 'in theory', only to find the reality of it all turns out nothing like we imagined.

Much the same can be said about many mortgage products and associated 'debt reduction strategies' here in Australia. Typically the banks bombard our newspapers and televisions with 'new ways' to 'slash years' from your home loan terms. The methods that facilitate these changes, and the mathematics supporting their claims often fall into the category of 'good in theory, not in reality'. Why?

It basically all comes down to the fact that we as Australians will ALWAYS spend whatever money we have direct access to.
Case in point is the classic 'Home Equity Line of Credit' style of loan. Citibank brought these home loans to market over 15 years ago with the potential to erase many years off the average home loan term because borrowers incomes are banked directly into the loan, and hence reducing the amount of interest payable on a daily basis.

While this works for a small percentage of people (mainly people who work on the mines), the majority find the temptation of having access to the 'revolving line of credit' too great. Most of us often make 'impulse buys' such as plasma TVs, and ultimately end up spending more than what we've earned..... Sound familiar?

Adding insult to injury, loan consultants pitch the attractive and convincing arithmetic (theory) of a Line of Credit via fancy graphs, and after having persuaded Joe Average, leave him and his new found temptation for a motorbike or golf clubs, and are never again seen to help with the on-going need for budgeting! Why do they knowingly let Joe fall into this spending trap?

Banks have shareholders to appease, and multi-billion dollar profits to maintain and grow. Of course they'll never admit it, but the reality is they want you in debt with them for as long as possible, and therein lies the conflict of interest. You want to accelerate your debt reduction, but they don't.

So, for a financial relationship you can actually trust, you need to side with a lender with whom you have a mutual goal - you being debt free as quickly as possible. But is this a REALITY? Yes.

To find out more, have a chat with a Crown Lending broker on 1300 882 981.