Good time to buy, sell or hold property in Oz?

Contact me for a free chat about property and finance 

Is this the right Time to invest in Property?

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Tell us what you think!!!

Will property increase of decrease in next 5 years ? 

James Kirby of the suggests  that Property Prices are on the rise !

Property prices have been rising in March! 

Foreign  investors are coming into the market 

And yet Australians are highly geared into property!!

Mortgage stress seems to be minimal with households being able to pay their commitments even at higher mortgage rates 

However - The RBA estimates that about 16 per cent of owner-occupier mortgage holders in Australia are unable to refinance just now because they do not meet the current serviceability rules. That is, they may have fixed a mortgage at, say, 3 per cent, and now find they must pay a variable of 6 per cent (which would be “assessed” at 9 per cent if they tried to change banks). This segment is stymied financially but there is little to suggest they will push prices much lower.

Rents are rising up to 30pc per annum !!

There have been the biggest flow of migrants - where are they going to live? 

The weeks jobless rate is less than 3.5%

Here is article 

Property prices 2013 - 2023

So what does the above graphs show about property price movements in Australia  over the past 10 years ? 

1. Houses seem to have increased more than units 

2. Darwin and Perth have stagnated - why?

3. Property in creases - but never in a straight line - it’s always the right time to get u to the market ! 

4. Understand the property clock - buy when all are selling ! 

5. Properties tend to increase steadily over time -

6. Focus on where best place is to buy - do the research 

What else? 

💰 💴 So what’s happening in the world of mortgages and finance?

#Refinances and rebalancing banks books are a happening thing !!

💰 owner-occupier refinances is at a new record high of $13.6 billion! (The Australian Bureau of Statistics Data)

Here are some of the reasons why this is happening:

💥Fixed-rate periods are coming to an end, which is prompting borrowers to look for better deals 

💥 Unique policy changes allowing "mortgage prisoners" to refinance out...

💥 Borrowers are onto their banks"loyalty tax" by shopping around for better deals. If you go to your bank - and say you’ve got a better deal - they have “a pricing department” who will look to match your best offer!!

💥 Homeowners are looking for lower interest rates and innovative solutions due to the recent cash rate hikes by the RBA.

💥- Lenders are offering cashback incentives to encourage people to switch lenders.

Can you save significant coin ? 

Have you got a strategy when your cheap fixed rate turns into a p and I with a 5+% interest rate ?

Would you be open to chat and explore whether there is an opportunity for you to save money on your mortgage?

If so - direct message  me or like this post 

Don’t take your eye off the ball

Great article by Franchise Accountant - Peter Knight 

Quote of the week from a new client...

"I guess I took my eye off the ball..!" 

(Err… understatement of the week)

Eighteen months ago they were making profits.

Then things turned.

For the worse.

- Decisions were being made without deep consideration of the longer term impact.

- Debt was taken on to allow for expansion, without sufficient planning.

- The owner of the business started taking more time away from the business, leaving the day to day running to a new manager.

- The results are now obvious.

It's easy with hindsight to see the impact of these decisions. Now we're in a fight for survival.

Action points arising from the meeting I've just had with this client:

- Owner to cease drawing a wage for the next 12 months.

- Owner to cease having personal expenses paid for by the business.

- Drop one highly paid manager.

- Renegotiate with the bank.

- Renegotiate with the landlord.

- Focus on increasing sales.

- Find alternative sources of income.

This has all happened within the last 18 months. That's how fast things can change.

Lesson to be learnt: Don't take your eye off the ball.

#business #sales #planning #bank #change #smallbusiness #smallbusinessowners #franchise #franchisebusiness

Great insight By Michael Murray FCA

Was a deep analysis done on the P&L, variable cost have been steadily creeping up on businesses over the past few years. Most of the proposed solutions seems to be on fixed cost. High Cost of Sales  can be the death of most SME especially if they keep prices steady....

Ivan Kaye comments 

Maybe a solution is 

—— to upskill employees to be great leaders

 …. Have a clear business model and formula that works 

—— hire the thriftiest and best - Reward team for performance of Botton line  - make sure rewards are in line with shareholders - bonuses in line with dividends and growth Kpis 

Analyse why the profits went down 

Sales? 

Margins?

Customer service?

Population Growth in Oz back to prepandemic levels

Australia’s #population is now growing faster than pre-pandemic levels.which should positively impact our #property markets and economy.

• Population growth results increases in property prices .  Recent research from Domain found that when the national population increases 1%, long-term cumulative house prices increase by 8.18%.

• Population growth will benefit property #investors – there will now be more people competing for rental accommodation, which will put upward pressure on rents.

• Population growth will benefit business  – by making it easier for them to find staff.

Thanks Christian Stevens for the heads up! 

Interest rate increases .25% to 3.6%

Interest rate increases .25% to 3.6% .

What will the peak be and when  will it reach its peak ?

The gurus say it will reach 4.2% before it stabilises ….

What do you think? 

If you want a free review of your mortgage and debt with a view to get a better rate or a facility - feel free to connect with me or go to www.bsi finance.com.Au