Real Estate Your Way

23/10/2024

How to avoid overpaying on equipment financing

When financing equipment for your business, it’s important to take steps to avoid overpaying. Here are five things to consider:

1. Shop around for competitive rates
Compare rates from multiple lenders to secure the right option for your business, on interest rates and terms.

2. Understand all fees
Be aware of hidden fees like application charges or early repayment penalties, which can add up over time.

3. Negotiate loan terms
Always negotiate for better terms, whether that’s a lower interest rate or an extended loan term.

4. Avoid long loan terms
While longer terms reduce monthly payments, they increase the overall interest paid. Opt for shorter terms when possible.

5. Leverage down payments
A larger down payment reduces the loan balance and can save you money in the long run.

18/10/2024

The role of credit scores in asset financing

Credit scores play a critical role in determining your ability to secure financing for assets like vehicles, equipment or machinery. Lenders use credit scores to assess the risk of lending to a borrower.

A higher credit score can open the door to more favourable financing terms, including lower interest rates and more flexible repayment options. Here’s why your credit score matters in asset financing:

1. Lower interest rates
Borrowers with strong credit scores typically qualify for lower interest rates, reducing the overall cost of financing.

2. Improved loan approval chances
A good credit score increases the likelihood of loan approval, giving you access to better financing options.

3. More favourable terms
Lenders are more likely to offer flexible loan terms—such as longer repayment periods—if your credit history is solid.

Maintaining a strong credit score helps ensure you secure the best deals when financing assets, ultimately saving you money.

15/10/2024

Student housing market to remain strong despite caps

Australia's student accommodation market is expected to stay resilient despite the Federal Government’s plan to limit international student enrolments to 270,000 next year.

Ray White stated that the cap is unlikely to have a major effect on the sector, which continues to thrive, largely due to international investment and development.

Although the proposed cap is a slight decrease from 2024 figures, it’s still above pre-pandemic levels. While some universities in states like Victoria, NSW, and ACT may see fewer international students, others such as Charles Sturt University and Notre Dame could significantly increase their intake.

Currently, there is still an ongoing mismatch between available housing and the increasing student population as a key driver of demand.

13/10/2024

Commercial real estate set for recovery

The commercial real estate market in Australia is showing early signs of recovery, with investors optimistic about potential global interest rate cuts, according to Cushman & Wakefield.

The firm’s CRE Glidepath study revealed that investment activity is already gaining momentum, with Q2 2024 transactions reaching $10.1 billion, more than double the Q1 total of $4.9 billion.

While the Commercial Property Price Index (CPPI) is expected to drop by 8% from its peak before stabilising in early 2025, investor confidence is growing.

At the same time, the proportion of CRE professionals who believe the market is in a downturn has significantly declined, from 75% in late 2022 to 45% by mid-2024.

10/10/2024

Pros and cons of refinancing a boat loan

Refinancing your boat loan can be a smart move, but it’s important to weigh both the advantages and disadvantages before making a decision.

Advantages:
- Opportunity to find a different lender if you're unhappy with the current one.
- Lower monthly repayments through a lower interest rate or longer loan term.
- Improved cash flow and potential for more savings.
- Option to add or remove a cosigner.
- Ability to consolidate other loans (e.g., home, car) into a single loan.
- Flexibility to switch from a variable to a fixed interest rate.

Disadvantages:
- Paying more interest due to a longer or new loan term.
- Larger monthly repayments if you choose a shorter loan term to reduce interest.
- Additional transaction fees with the new lender.
- Possible penalties for paying off the original loan early.

07/10/2024

Rental market growth finally slows

Australia’s rental market boom appears to be nearing its end, with CoreLogic’s national rental index flatlining over the past two months after a steep 39% rise between August 2020 and June 2024.

CoreLogic notes that this slowdown reflects the weakest rental conditions since the early stages of the pandemic.

While annual rental growth reached 9.7% in late 2021, the pace has since slowed to 7.2%, with unit rents particularly affected.



Cities like Sydney and Canberra have seen rental declines in recent months, though Perth and Adelaide continue to show stronger growth.

04/10/2024

Perth and Brisbane auction markets remain hot

Auction markets have been a little slower this year, but Brisbane and Perth continue to hold strong.

According to Ray White, while the national auction clearance rate has dropped from 71.4% last year to 66.2% this year, Perth and Brisbane have shown resilience.

Brisbane saw a 51% increase in auction numbers and now boasts the highest average active bidding numbers in the country.

Perth, while a smaller auction market, has also seen an uptick in clearance rates and active bidders.

Ray White believes that the trend is likely to continue throughout Spring in these two markets even as volumes also increase.

01/10/2024

New listings jump as Spring gets underway

Sellers have been out early this year, with new listings seeing a 6.6% jump as Spring selling gets underway.

According to PropTrack, capital cities are seeing the most activity as Sydney, Melbourne and Canberra recorded the greatest number of new listings for August in over a decade. Overall, capital city listings were 1.6% higher year-on-year, the highest since 2012.

The market has enjoyed consistent momentum, with Sydney seeing its 14th consecutive month of annual listing growth, while Melbourne and Brisbane followed closely behind.

The strong listings have provided more choice for buyers, with total properties for sale increasing 4.5% from August 2023.

29/09/2024

RBA UPDATE | Effective September 25, 2024

The official cash rate will remain on hold at 4.35% for the seventh consecutive time after today’s board meeting. However, the Australian Broker reports that “anticipation is building for a rate cut this side of Christmas as several key economic indicators point towards a struggling economy.”

Given the ongoing cost of living concerns for Australians, new data from Finder has shown that millions of homeowners are experiencing significant financials stress, with 40% reporting they will struggle to pay their home loan this month

The Australian Broker has written: “The average Australian has $39,407 in cash savings in September, according to Finder’s Consumer Sentiment Tracker. However, the nation’s big savers are clearly pulling up the national average, with 40% of Aussies having less than $1,000 in their savings account.”

While the ASX expects to see four rate cuts in 2025, some banks are claiming that the Reserve Bank of Australia (RBA) will lower the cash rate before the new year, in November 2024.

If you have concerns with your current situation, or simply want to find out if your existing home loan still meets your needs, get in touch with a mortgage broker. Brokers are there to assist you in getting a loan that is competitive, offer choice, negotiate product features on your behalf and always act in your best interest.

31/08/2024

28/08/2024

Rental growth starts to slow down

National rents remained unchanged last quarter, with the median weekly rent holding steady at $600 per week.

According to PropTrack, while national rents remained unchanged over the past three months, they are still 9.1% – or $50 higher – over the last 12 months.

At the same time, the national rental vacancy rate rose to 1.4% in June 2024, up from 1.1% 12 months ago.

Additionally, capital city rent growth (up 10.3%) outpaced regional markets (up 8%) over the past year, with weekly rents reaching $640 per week in the capital cities and $540 per week in the regions.

Meanwhile, houses currently have a lower vacancy rate (1.1%) compared to units (2.1%).

18/08/2024

Secured vs unsecured personal loans

Secured personal loans

A secured personal loan requires collateral, such as a car, home, or savings account, which the lender can seize if you default on the loan. Because these loans are backed by an asset, they typically offer lower interest rates and higher borrowing limits. This makes them attractive for borrowers who need a larger sum of money or who may not have a strong credit history. However, the risk is significant – if you fail to repay the loan, you could lose your collateral.

Unsecured personal loans

In contrast, unsecured personal loans do not require collateral. These loans are granted based on your creditworthiness and income, making them accessible to a broader range of borrowers. While they often come with higher interest rates and stricter borrowing limits compared to secured loans, they carry less personal risk because your assets are not at stake. This type of loan is ideal for smaller expenses, such as consolidating debt, covering medical bills, or funding home improvements.

15/08/2024

Spring selling tips for homeowners

Spring is a prime time for selling homes, and taking the extra care to prepare it for sale can make all the difference to the price you ultimately get.

Here are a few things to think about:

Enhance curb appeal: First impressions matter. Clean up your yard, plant fresh flowers, trim bushes, and mow the lawn. A well-maintained exterior invites buyers inside.

Declutter and depersonalise: Remove personal items, excess furniture, and clutter. This helps potential buyers envision themselves living in the space. Consider renting a storage unit for temporary storage.

Deep clean: A spotless home is more appealing. Clean windows, carpets, and every nook and cranny. Pay extra attention to kitchens and bathrooms, as these are critical selling points.

Make necessary repairs: Fix any minor issues like leaky taps, cracked tiles, or squeaky doors. Consider a fresh coat of paint in neutral tones to make the home feel fresh and new.

Stage your home: Arrange furniture to maximise space and create a welcoming atmosphere. Add fresh flowers, update linens, and use tasteful decor to highlight the home’s best features.

12/08/2024

House prices set another record

House prices in Australia’s capital cities have reached new highs for the sixth consecutive quarter, though the growth rate is decelerating.

According to Domain, the combined capital city house prices rose by 1.3% last quarter, consistent with the previous quarter but slower than mid-2023.

Sydney house prices hit a record high of $1.66 million, increasing by 1.3% for the quarter. Melbourne houses saw their strongest gain in 2.5 years, rising by 1.7%. Meanwhile, Brisbane house prices are on track to surpass $1 million next quarter.

In Perth, house prices exceeded $800,000, with an increase of $448 per day over the past year. However, unit price growth slowed significantly, growing at a rate four times slower than the previous quarter.

30/05/2024

How it works

Real Estate Your Way, a wholly Australian-owned private business, has over a decade of industry experience and a leadership and support team of seasoned professionals.

Independently operated, we offer free property listings for sales and rentals across diverse categories, including residential, land, commercial, and rural, along with access to ancillary services like home loans and building inspections.

29/05/2024

Five tips to secure a business loan

Assess your needs: Determine the purpose and amount required for the loan to guide your application process.

Check your credit score: Ensure your personal and business credit histories are in good standing to improve your chances of loan approval.

Prepare a comprehensive business plan: Present a well-drafted plan outlining your market understanding, growth potential and how the loan will be used to achieve business goals.

Research lenders: With the help of a finance broker, compare your lending options to find the best fit for your business.

Gather documentation: Organise necessary documents such as financial statements, tax returns, and legal agreements to streamline the application process and demonstrate your business's financial stability and credibility.

26/05/2024

Investment in BTR on the rise

Build-to-rent (BTR) is becoming an increasingly popular option for investors as the number of projects continues to rise.

According to Savills, investment in the sector has been increasing rapidly and now captures 8 per cent of all transnational dollars across the Australian real estate market in the past year.

As a result, there are around 13,265 BTR units under construction in Australia and a further 32,300 that have or are seeking planning approvals.

However, only 42 per cent of the development pipeline currently has funding.

20/05/2024

The benefits of invoice financing

There are five key reasons businesses might want to think about using invoice financing when dealing with cash flow challenges:

Confidentiality – Customers aren’t impacted by invoice financing.

Flexibility – Invoice finance can be used as required.

Speed – The process is organised in advance and can be finalised quickly each month.

High drawdown – This can be higher than an overdraft, a credit card loan or bank loan.

Ease of use – Well suited for small businesses.

15/05/2024

Are balloon payments worth it?

A balloon payment is a large, one-time payment due at the end of a loan term that might be a great way to manage your car loan repayments.
Here are some advantages:

Lower monthly payments: Balloon payments reduce monthly instalments, easing financial strain.

Improved cash flow management: With lower payments, borrowers can manage cash flow better.

Access to higher-end vehicles: Balloon payments make expensive vehicles affordable, matching preferences and lifestyles.

Potential tax benefits: For business users, balloon payments may offer tax advantages by reducing taxable income.

Flexibility: Borrowers have choices at the end of the term – make the balloon payment, refinance, or trade-in for a new vehicle.

13/05/2024

Time to buy in the cities?

The big capital cities could be the best buying opportunities in the next 12 months, according to a new report from Canstar.

With surging population numbers and limited supply, Brisbane, Adelaide and Sydney are shaping up to be leading property markets.

The report said that Brisbane has multimillion-dollar projects underway as it prepares for the 2032 Olympics and Sydney is benefiting from business investments and governments pouring millions into transport and education.

Adelaide property’s relative affordability has made it an appealing investment, with strong house price growth signalling good prospects for more growth ahead.

11/05/2024

Luxury property outperforms

Luxury property has led the surge in prices over the past decade, with new data showing that high-end houses and units performed the best.
According to the Ray White Luxury Property Report, luxury house prices increased 84 per cent since 2014, while median house prices grew by only 70 per cent.
Notably, Hobart’s luxury market has been the best performing, up 122 per cent over the last 10 years, while Brisbane follows close behind with 102 per cent growth.
Meanwhile, luxury unit prices also outpaced median unit prices growing 58.3 per cent compared to 31.5 per cent.
Hobart had the largest growth rate across major cities with 101 per cent for luxury units and 102 per cent for median units.

09/05/2024

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