www.sokudo.com.auWith Billions of searches on realestate.com.au, we pinpoint the pockets that people are now turning to in their property hunts.

In 2017 the property landscape shifted as prices became red hot in Sydney and Melbourne and people began to look elsewhere.

With demand in our two biggest cities continuing to cool, where will the next hotspots be?

Conditions have been tough in Perth for quite some time, but green shoots of recovery now appear to be emerging.

Demand on our site from buyers has consistently risen each month and is now up 12% from a year ago.

This steady rise has not yet translated to price growth across the metro region, however there are some suburbs that are starting to increase.

The places seeing the highest demand are the premium suburbs, with the inner west and northern beaches expected to be the top performing areas in 2018.

Demand from buyers in Hobart started to pull away from the Australian average in mid 2015 and by 2017 the Tasmanian capital had recorded the strongest price growth of all capital cities.

Hobart is in very strong demand right now and importantly, this demand appears to be driven by jobs growth.

Rental demand is also red hot which is an indicator of strong employment prospects in a region.

The Tasmanian economy is changing; employment growth used to revolve around government and agriculture, but now it’s much more diverse with tourism and education developing into major industries.

The top suburb in Hobart? West Hobart was recently ranked as the third most sought-after suburb in all of Australia in 2017.

While Hobart was the star performer of 2017, many buyers were also banking on price rises in the South Australian capital.

This didn’t quite happen, however 2018 is looking far more positive for Adelaide with a number of suburbs now featuring in the ‘fastest movers’ list (suburbs that are rising in popularity the most quickly).

The locations that are likely to be most attractive are the inner suburbs of Adelaide, as well as the bucolic Adelaide Hills, which holds great appeal for tree changers.

Like Perth, prices are still going backwards in Townsville, but some early signs of recovery are starting to show.

Castle Hill, one of the most in demand suburbs in Townsville, is about to hit a $1 million median.

In September, a Townsville property was the most clicked property going to auction in Queensland, a spot usually taken by homes in Brisbane or the Gold Coast.

All this points to Townsville being in the very early stages of recovery.

Central Coast continues to be a star performer on realestate.com.au and despite Sydney cooling, demand still appears to be holding up.

Similar to Hobart, the Central Coast economy is changing.

As more Sydneysiders move there for a more relaxed lifestyle and more affordable homes, business growth has in turn been spurred along and the region is now the top searched location for commercial property on realcommercial.com.au, ranking above both Sydney CBD and Parramatta.

The top location right now is Springfield – its affordability has made it is number one for buyers and renters alike.

Darwin joins Townsville and Perth as a city to watch.

While prices are still going backwards, demand is slowly picking up.

The city is small, but it is the northern suburbs – close to Charles Darwin University – that continue to see the highest levels of demand.

The most popular suburb right now is Jingili.

It takes just one hour by train to travel from Ballarat to Melbourne and this proximity is ramping up demand for suburbs located close to the train line.

Ballarat’s train line is also getting a major upgrade and while that may cause some travel delays, in the long run, any improvements will make it a better experience for commuters.

The suburbs to watch are those that appeal to first home buyers, particularly those within walking distance to central Ballarat.

Ever thought…..  ” I wonder what I can do to improve the Cash Flow of our business?”

If you’re like us and running the type of small business that has lumpy cash transactions, at various times of the year, you will have asked your self this question many times! Especially around Christmas time when your customers all disappear into the dark abyss on their well deserved Christmas Holidays!

Where does that leave you? How can you still earn money? How can you help to smooth that lumpy cash flow out?

Overdrafts – traditional but declining

The traditional way for a business to improve their cash flow was to run an overdraft. However, you’re charged a fee to get an overdraft and ongoing fees to maintain the facility. Also interest rates on overdraft facilities tend to be higher than for residential home loans. With more flexible business finance products emerging, overdrafts are becoming a less popular way to address cash flow issues.

Credit cards – expensive money

Credit cards are easy to get, easy to use, and can be a good way to finance and monitor employee business expenses. However, they are generally not the most economical way to deal with cash flow problems. The interest rates on credit cards tend to be higher than for residential home loans, and you can quickly get in over your head. There are other specialised ways to improve your cash flow.

Factoring, debtor finance or invoice discounting

You’ve done the work and sent the invoice but you don’t have the money. This is particularly frustrating when your debtors don’t pay on time – which is most of the time.

With factoring (also known as debtor finance, invoice factoring, invoice discounting or invoice finance), a lender gives you a percentage of the invoice (usually 80%) in cash, then the remainder when the invoice is paid. This service incurs a charge but can save your bacon in cash flow terms. Beware that if the debtor ultimately does not pay the invoice, you must repay the lender all the money you’ve been advanced.

Trade finance, stock finance, export & import finance

If you’ve bought stock, it can be some time before the finished goods are sold and this can have serious cash flow implications – particularly for importers and exporters.

With trade finance (also known as stock finance, inventory finance, export finance or import finance), the lender gives you a percentage of the money against the stock you’ve purchased. Again, you pay for the service but it can make all the difference in cash flow terms. Lenders are much less inclined to loan money for stock sitting in the warehouse than they are for confirmed orders.

Car leasing & equipment leasing

For many small businesses, leasing cars, computers and equipment is preferable to outright purchase because it improves your cash flow.

Software and telephony leasing

This is not a well known option, however there are limited companies out there who do Software and Telephony leasing!  This means when you are spending money implementing a new CRM, stock and inventory system, developing an app, building custom software or even implementing a new phone system you can look to secure finance for these!  All of the above mentioned can cost a business a lot of spare change, it could benefit you to look at finance and leave your cash free to flow!

By Sokudo Finance.

So, starting with the elephant in the room!  Yes, Unfortunately, like a lot of businesses out there, there are some brokers who perhaps don’t do what they should, causing negativity within the industry!   Not all businesses are created equally (Thank goodness!) and most of us just want to do the right thing by our customer and create a lending strategy that is going to support their lifestyle and their dreams!

I know, so maybe that last bit sounded a little bit on the cheesy side of things, however it is actually true, when you have the capacity to lend large amounts of money you have the capacity to bring possibility to the table..  realising a business dream, renovating a house to live in or even planning for your retirement, there is a lot of responsibility that a Broker has to carry!      It is our job to make sure we are doing the right thing by you and looking after your interests.

What is the benefit then?  There are a few main reasons why you should consider a broker…..

If they are a good and experienced Broker they will…

• Know the right bank to approach on your behalf considering your circumstances. Some banks have really strict policies on some things, others specialise in these categories.
• Negotiate terms on your behalf – that is… number of years, debt amount, interest rates, fixed verses variable etc
• Know when to include some of their relationship partners that they may have in their network (financial planner, accountant, property consultant etc) at the end of the day you really want a one stop shop.
• Know what is important to you when it comes to your lending – is it an offset account? Cash flow for a business? term in years? or even interest rate?

Yeah great, but what does this really mean to me………..

Well, the trouble you have when you approach a bank yourself, is that you don’t know what they are looking for.. you make an application and it gets declined..  why?  They wont necessarily tell you why…  Then you apply to another bank, that bank may have considered you previously but now that the first bank has rejected you …. so will the next one and so on.

The reason for this is due to each time you make a credit application – a credit check is being done on you.  This is done by a central agency and means that all banks have access to view these records.

Therefore it can be so important to know which bank will like your application and after a discussion with your broker he/she will know what is important to you with your lending..

If your broker is good, they may even be able to think of some lending options you may never have thought of too!  Don’t forget, if they have experience they will have constructed many loans and know what can work well for you.

The true meaning of the word Broker… is to arrange or negotiate.. a person who buys and sells goods or assets for others..

So the key is..  do your research, make sure your Broker is:

• Experienced
• Has a process
• Understands what you need
• Will supply you with written advice
• Has a great network of people they can introduce you to – should you need a Financial Advisor, Accountant, Insurance etc.
• Have a Website that gives you some insight and confidence in them
• Has a Social Media Presence – so you can get information from them, about them and also see what others think too!
• Has a network for banks, Financial Institutions and actually has a relationship with them!
• Has a system and process in place to manage and process your application from start to finish, this ensures that there is constant communication and follow up!

Loan Type: The regulator – APRA – has been working with lenders to reduce the number of interest-only loans for investment properties. Lenders have reduced their popularity by charging a higher interest rate and by requiring more stringent loan-valuation ratios (meaning the borrower needs a larger deposit). So, to increase your chances of success, apply for a principal & interest loan if you can: most lenders offer a lower interest rate and a more generous loan-to-value ratio.

Income: Mortgage lending is about affordability and that, in part, means income: if you’re an employee, try to plan to not change jobs in the six months before you apply for a mortgage, and don’t change industries for a year before. Wait until you’re out of a probationary period. Naturally life is not that simple sometimes, so if you have had to change jobs, often an experienced mortgage broker will be able to provide guidance on which lenders are more flexible on these issues. Self-employed people and business owners still generally need two years of tax returns and financials for a full documentation loan. While alternative documentation loans are available, they do come at a higher rate, lower LVR, and your accountant can expect a call confirming income details.

Spending: Serviceability – the amount of money you have to pay a mortgage each month – has been tightened, so your spending is crucial (the other main aspect of affordability). Lenders used to have calculators that attributed monthly expenses based on age and income etc. But now, lenders ask for itemised budgets and they can seek verification such as bank statements. This is a bonus for people who are disciplined about household budgets because reducing your monthly overheads increases your serviceability. Six months before you apply, plan a tight household budget and stick to it.Savings: Lenders want to see a savings history, not only for your deposit but to assess your discipline and to demonstrate that you spend less than you earn. If you want to buy a home in a couple of years’ time, start saving now – create a separate account and build it weekly.

Property: Lenders are currently focusing on the valuation of the property. If the asking price for your purchase is significantly higher than its independent valuation – especially an apartment – the lender could decline the application. So before applying, use independent sources and ensure you’re not over-paying.

Credit score: Avoid applying for many loans in the hope that you’ll be successful. It can alter your credit score, and that’s something you want to keep as clean as possible before applying.

Perhaps seek some advice…

Advice: 

Most borrowers can benefit from using an experienced mortgage broker.

They save you time and energy by ensuring you have the right information, the correct documentation and that you’re approaching the right lender.

A broker will also negotiate the best interest rates.

Be Smart be S.ecure

At a glance

If you’re looking for a stable and secure investment, property is a solid option. Far less volatile than other investment strategies, an investment property has the potential to deliver consistent rental returns for years to come. While you may start out with a single property, careful consideration and management of your investments could see you grow this to a full and profitable portfolio with the help of a broker.