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A Look at Alternative Financing Markets

For consumers and businesses, going to the bank for a loan is no longer the only option for financing, and technology is just part of what’s driving the change in the lending marketplace. These changes involve the emergence of “online marketplaces” for lending including equity and reward-based crowdfunding and peer-to-peer consumer and business lending platforms.

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Paying Interest in Advance on Investment Property

Now is the time of the year some people consider paying 12 months of interest upfront to claim the tax deduction in this financial year. If you have sold a property and have a capital gain liability, or have come into some money via a bonus or something, paying the interest upfront and claiming the deduction this year can be a good way to reduce the tax bill for the year.

Many lenders will offer a discount on the interest rate for paying in advance, for example Commonwealth Bank have an interest rate of 6.54% for paying 1 year upfront if you are on their professional package. This is less than the discounted variable rate, of course you are taking a risk as to what interest rates will do over the next 12 months.