Loyalty Finance

Three things to look out for with your next car loan These days getting a car loan is commonplace and most car #buyers are given a host of offers from both lenders and car dealerships. When looking at different car loans, there are several red flags that buyers should be aware of. Often there is a lot more to a car #loan than first meets the eye. Here are three things you need to be aware of before taking on a car loan. Hidden fees and add-ons The car finance market often highlights loans with very low or even 0% interest rates. While these offers seem appealing on the surface, they typically come with a catch. Many of these seemingly helpful car loans hide behind the offer of low interest rates but come with a range of hidden fees and unnecessary add-ons. These can significantly inflate the overall cost to the #car buyer. Before committing to any car loan, it’s vital that you examine the fine print. Ensure you understand every aspect of the loan agreement and don’t hesitate to ask questions. If a salesperson or lender is overly pushy or fails to provide transparent information, consider it a red flag. Avoid falling for any high-pressure tactics and any optional services that don’t genuinely enhance the value of your car purchase. Read More >> https://lnkd.in/gCKVmRKa #Australia #Finance #Loyalty

Smart ways to fit out your professional practice Setting up your own practice is often the goal of many medical professionals; however, modern practices can be expensive to get off the ground. Fitting out a new practice can cost anywhere from $400,000 to $500,000, which means owners will need to plan how to both finance and build out their practice. Here are four effective ways to fit out your practice for maximum efficiency and success. Add as you go While the excitement of setting up your practice can drive many people to want everything up and running from day one, it might not be the most effective approach. Consider whether certain equipment or practice room setups can be delayed without compromising your initial operations. Taking a phased approach to fit-out allows you to prioritise essential elements, easing the initial financial pressure and allowing you to keep your costs lower until your practice is established. Look at the intangibles Beyond physical assets, the intangibles and “back office” capabilities significantly contribute to the effectiveness of your practice. Elements like layout design, software and cloud storage systems may not be factored into traditional financing options. Consider the broader aspects of your practice and then look to assess your finance needs. A well-designed layout and streamlined backend processes can enhance patient experiences and the overall efficiency of your practice. Read More >> https://lnkd.in/gg5Czp43 #Australia #Finance #Loyalty

Construction costs are returning to normal #Construction cost increases have reaccelerated, but the good news is they are now returning to their normal trend, according to CoreLogic. The Cordell Construction Cost Index (CCCI), which tracks the cost to build a typical new dwelling, recorded a growth rate of 0.8 per cent over the three months to December 2023. Construction costs had been increasing as much as 4.7 per cent in the third quarter of 2022, before falling to 0.5 per cent in the third quarter of 2023. CoreLogic Economist Kaytlin Ezzy said although construction costs had increased, they are now well below the pre-COVID average of 1 per cent. “This suggests that reacceleration is more a return to trend rather than a new surge in construction costs,” Ms Ezzy said. “While up over the quarter, the annual change in residential construction costs continued to ease as larger quarterly increases fell out of the annual calculation.” According to Ms Ezzy, the increase was the smallest annual rise since March 2007 (2.7 per cent) and below the pre-COVID decade average (4 per cent). “This suggests that growth in construction costs have normalised after recording a recent peak of 11.9 per cent over the 12 months to December 2022, albeit at a higher level,” she said. Read More >> https://lnkd.in/gppnpuPg

Commercial activity could increase in 2024 #Commercial transactions could start to rebound in 2025, with lower prices starting to appeal to buyers along with the potential for interest rates to be cut, according to Ray White Commercial. Ray White Head of Research, Vanessa Rader, said transaction volumes were lower last year as confidence was low, but things are starting to change. “Last year we saw many owners reluctant to transact and adopt a ‘wait and see’ attitude, this year we expect to see an increased need by vendors to bring their assets to market which will impact turnover levels,” Ms Rader said. “Encouraging for 2024, the stagnant feel of 2023 will move and sentiment shifts, either positive or negative, will result in property decisions being made and opportunities presenting themselves, resulting in some turnover activity rebound for the year ahead.” Ms Rader said that after a difficult few years, the office sector could start seeing renewed interest from investors. “We saw in 2023 a turnaround in activity for the office sector,” she said. “This sector was leading the charge in 2022, recording more than 34 per cent of all transactions, and representing close to $23 billion in sales. However, uncertainty surrounding the future of office and yield increases saw this sector off the boil, reducing volumes to just $10.8 billion.” She said that the higher vacancy rates we’ve seen since COVID began will continue to weigh on the sector. #Australia #Finance #loyalty Read More >> https://lnkd.in/gfbRh8Us

Understanding your borrowing power It’s often said that property investment is a game of #finance more than real estate. One of the key factors that determines how the growth of your property portfolio is a person’s #borrowing capacity. Your borrowing capacity represents how much #money you can access from a lender – and therefore the price of the property you can purchase. When determining a person’s borrowing capacity, there are several things a lender will look at. Income sources The heart of your borrowing power is always going to be the stability of your income. It’s not always just about the total amount you earn but where it comes from and how consistent it is. While a regular salary is a substantial contributor, lenders also recognise the value of additional income streams, such as part-time employment, rental income, or returns from investments. Your income is always going to be the main factor a lender looks at because it gives them comfort that you are able to earn enough income to service a loan. #Financial obligations The debts you carry will also play a significant role in determining your borrowing power. Whether it’s credit card balances, personal loans, car loans, or other financial commitments, lenders take into account your existing obligations. Effectively, the more debts you currently have, the lower the overall cash you will have in any given month to service future debts. Equally, lenders don’t want to lend to people who already have high debts relative to their income levels, as borrowing will put them under more financial pressure. Read More >> https://lnkd.in/gtAgnVxa #australia #loyalty

Five ways mortgage brokers can help borrowers Over the past few years, borrowers have been challenged like never before with rapidly rising interest rates catching many off guard. When interest rates are changing, #borrowers need to be proactive in how they manage their mortgage. This is why working with a mortgage broker can be incredibly valuable. Here are five ways mortgage brokers can help borrowers in the current environment: Guidance on interest rates With interest rates changing and a huge range of products on the market, it’s difficult for an average borrower to stay on top of what certain lenders are offering at any given moment. #Mortgage brokers continually stay on top of both market trends and product offerings. Whether interest rates rise or fall, mortgage brokers are well positioned to compare your options and find an appropriate solution to your needs. Mortgage brokers have their finger on the pulse when it comes to what the market is offering at any point in time. Read More >> https://lnkd.in/gVRtq4rW #australia #finance #loyalty

The build-to-rent sector set for a strong 2024 The build-to-rent sector (BTR) is set for a strong year ahead, with #Australia’s surging population growth likely to drive increased demand for both rental properties and student accommodation. In 2023, the build-to-rent and purpose-built student accommodation industry recorded its best year yet, according to MSCI. Commercial residential deal activity increased 77% to just under $3 billion in total last year, with the #BTR sector seeing over $2.2 billion in transaction volumes. Head of Real Assets Research for the Pacific region at MSCI, Ben Martin-Henry, said BTR was a “bright spot” in a year that was challenging for many commercial asset classes. “We’re starting to see more and more projects come out of the ground after being in development for a number of years,” Mr Martin-Henry said. “Given the population growth that we have had, there should be no shortage of people taking up this space, so it should continue to boom.” BTR has benefitted from a number of government changes, including the withholding tax rate for managed investment trusts being cut, due to come into effect in July 2024. The changed capital works tax deduction depreciation rate has also assisted the sector. #australia #finance #loyalty For more information please visit our website https://lnkd.in/eJWMzVTy

#Perth and #Brisbane set to lead growth in 2024 Property prices are expected to continue growing, with the smaller capital cities of Perth and Brisbane expected to be the top performers over the next 12 months, according to a new report. Oxford #Economics predicts that property prices in Perth will increase 9.1 per cent this year, making it the nation’s strongest property market. Over the next three years, they also predict Perth house prices to increase by 29 per cent and units by 34.4 per cent. Senior #Economist at #Oxford Economics #Australia, Maree Kilroy, expects Perth to continue its recovery after years of price declines. “Perth has underperformed for years, even as the other capitals were rebounding sharply, so it has so much to catch up on to maintain that relativity with those other capital cities,” Ms Kilroy said. “Perth has a significant stock deficiency and WA has the greatest supply chain and capacity constraints of all states,” Ms Kilroy said. “It has the strongest population growth, which we expect it to maintain over the next three years.” Oxford Economics also predicts that Brisbane will see values rise 4 per cent, followed by Sydney at 2.6 per cent, Adelaide at 1.4 per cent and Melbourne at 0.9 per cent. Overall, the capital cities are predicted to increase in value by 2.7 per cent in 2024. Ms Kilroy said the return of interest rate cuts from late 2024 should facilitate even stronger price growth over the next two years in Brisbane. “Demand fundamentals are expected to remain strong, with Queensland positioned at the front of the pack in terms of population growth,” she said. “Adding to this, the 2032 #Olympics should provide a sustained boost to developer and buyer optimism from mid-decade.” Over the next three years, Brisbane house prices are expected to climb by 19.8 per cent and units by 23.3 per cent, she said. She said Sydney house prices will increase by about 16 per cent over the next three years, while units are expected to climb by more than 23 per cent over the same period as buyers seek cheaper housing options. “With the context of a growing dwelling stock deficiency, the return of interest rate cuts will drive the next acceleration of price growth from late-2024 onwards,” she said. “However, the pace of growth is slowing as a result of the additional interest rate lift in November and rising total listing volumes, so this year would be softer in terms of price growth.” #loyalty #finance https://lnkd.in/grrfPMzY

Five things to consider before getting caravan finance One of the best parts of the summer holidays is packing up the car and heading off on a family holiday. A popular choice for many Australians is staying at caravan parks in iconic locations. These trips can get people thinking about whether they should take the next step and purchase a caravan or camper of their own. Before starting this journey, it’s important to look at how you are going to finance your new caravan. Here are five crucial aspects to consider before looking into caravan finance. Interest rates Similar to car loans, caravan and camper loans offer a variety of products with different interest rates. The rates can range from low to relatively high depending on factors like the lender, loan configuration and your credit history. The key distinction often lies in whether the loan is secured or unsecured. Secured loans tied to the asset (caravan), often have lower interest rates. On the other hand, unsecured loans – though offering higher interest rates – don’t link the loan to the asset, providing greater flexibility. For more information please visit our website https://lnkd.in/gBCVWu_d #australia #finance #loyalty

Student accommodation to remain undersupplied in 2024 Surging #immigration is being led by international #student arrivals, with demand for accommodation likely to continue rising, according to a new report. Savills’ #Australian Student Accommodation 2023 Report has found that the development pipeline of new student accommodation is already declining, with the total number of new student beds dropping by more than 50% compared to the last three years. The report found that student accommodation is also likely to see steady rental growth in 2024 and a shift away from the inner-city suburbs of #Sydney and #Melbourne. The report forecasted that Sydney will be a standout performer compared to the other capitals over the next five years. This is due to demand for popular #universities like the University of Sydney and the University of New South Wales, along with an influx of lifestyle students and a historic undersupply of accommodation. Brisbane rents, however, are expected to slow over the next half-decade due to new supply and affordability ceilings being hit. The report also found that the number of international students now in Australia is at a record level. In the year to September 2023, there were 618,350 international student arrivals to Australia, up 88% from the previous year. Savills said international student arrivals are forecast to surpass 2019 levels in 2024 and grow to close to one million by the end of the 2025 academic year. Savills director of operational capital markets, Paul Savitz said, “This boost in international student arrivals comes after Australian universities advised a return to in-person course delivery this year, with the Chinese government also requesting its students to return to destination universities.” “This catalysed a rapid bounce-back in demand for higher education in Australia, which has caught many universities by surprise,” Mr Savitz stated. The lower Australian dollar has been a factor in driving demand from international students, however, they predict this could change if the exchange rate firms over the course of the year. According to Savills’ Head of Operational Capital Markets, Conal Newland, the student accommodation sector remains a favourite among investors, despite economic uncertainty, higher construction costs and the elevated cost of debt. This is because the student accommodation sector offers consistent returns. “Unlike many other real estate sectors, rents can be rebased every six months, or even every semester – keeping pace with inflation and adapting to a shifting economic environment,” Mr Newland said. “These features will maintain the comparative attractiveness of the sector for investors and may lead to a further rebalancing of real estate portfolios away from commercial assets and towards residential assets such as PBSA, supporting the sector’s continued growth.” https://lnkd.in/gZecv4VC