SBS Financial Solutions

30/01/2023

04/01/2023

NSW First Home Buyer Choice..........

14/12/2022

Tight supply to drive industrial property in 2023

Ongoing supply constraints in the industrial property sector are likely to continue to keep values elevated in 2023.

According to Knight Frank Australia’s 2023 Outlook Report, the industrial sector is facing dramatic undersupply of stock.

“Much of the ‘available’ space is still under construction with very limited existing stock available and as a result, lease deals are increasingly being negotiated 6-18 months in advance for existing space,” CEO of Knight Frank Australia, James Patterson said.

The Outlook Report predicts that the focus in industrial will shift from rapid upscaling to strategic optimisation of the distribution network, encompassing cost, location, design, operational and environmental considerations to maximise returns from significant investments in property and technology.

Chief Economist at Knight Frank Australia Ben Burston said the industrial sector remains the one to watch, with the market expecting a record year for development completions in 2023, led by Brisbane and Melbourne.

“While this will be welcomed by tenants, it is still likely to be insufficient to restore a more normal balance between supply and demand, particularly in Sydney, with an equilibrium unlikely to be restored until a larger quantum of developable land comes online in 2024-25,” Mr Burston said.

06/12/2022

Australia’s central bank has increased the cash-rate by 25bps today December 6, 2022 for the holiday season. The current rate now is 3.10 per cent

21/11/2022

Demand for hybrid office work on the rise

Despite the rise in the work-from-home movement, demand for office space remains strong.

According to CBRE Australia and New Zealand CEO Phil Rowland, hybrid working is by no means the death of the office.

“Most organisations are acknowledging flexible working is here to stay and there’s a real acceptance of different work settings, which is a really important shift that’s taken place,” Mr Rowland said.

“But we’re also seeing the amount of time that organisations are expecting their people to work in a non-office environment reducing, from three or four days to an average of 1.7 days out of the office.

“But it’s not a one-size-fits-all situation, and hybrid working is by no means the death of the office.”

Mr Rowland said the most in-demand offices are those designed to much closely suit the profiles of diverse work activities.

“Those offices newly built or under construction that are well designed and well located in precincts that enable people to live, work and play are becoming really, really important offerings in the market and are being taken up strongly by occupiers,” he said.

10/11/2022

How to manage higher loan repayments

Interest rates are rising as the Reserve Bank of Australia (RBA) looks to aggressively hike the official cash rate to help slow growing inflation.

For average borrowers, higher interest rates make it more difficult to meet mortgage payments and can eat into household budgets.

If you’re concerned about rising interest rates, there are a steps you can take to reduce your stress levels.

Scrutinise your spending

When costs are rising it’s very important to take a close look at where your money is going and prioritise what you really need to spend on.

Discretionary or luxury items might be an area you can cut down your expenses. Simple things like eating out or taking expensive holidays could be things to look at to save some money. Savings from these cuts can then be used in more important areas such as your mortgage.

Creating a budget and sticking to it is normally the best way to make sure you’re earning more than you’re spending each month.

Consolidate your debt

If you’ve got a number of different debts with varying interest rates, it could be worth looking at consolidating.

Consolidating your debt involves rolling the higher interest debts into one new loan with a lower interest rate. This can help you pay down your debts faster and deal with higher interest rates.

Refinancing

Another good option for those worried about higher interest repayments is to try and find more competitive rates. Working with a mortgage broker can help you compare your options and find different loan products that could potentially save you money.

There are normally introductory offers from lenders with competitive interest rates, as well as the option of different home loan products that could be suitable for your situation.

Look to downsize

If you’re really concerned about higher interest rates and being able to manage your mortgage, then you could even look at downsizing your property.

By finding a lower priced home, you could reduce the mortgage repayment to ensure it is more affordable.

Look for other forms of income

These days there are plenty of ways to earn extra money. Taking on some more work or a side job could be an effective way to improve your financial situation.

Interest rates rise and fall over time, so while they are in a phase where they are rising, it could be an opportunity to earn more income to help pay down the debt.

10/11/2022

Rising interest rates are less likely to impact commercial property compared to residential, according to the RBA.

Head of Domestic Markets at the RBA, Jonathan Kearns, said commercial property could potentially act as an inflation hedge.

“If commercial property was seen as a hedge against inflation, then an increase in interest rates because of higher inflation could reduce risk spreads and result in less downward pressure on commercial property prices from higher interest rates,” Mr Kearns said.

“All up, simple estimates suggest the fall in commercial property prices in response to higher interest rates appears to be slower, and slightly smaller in magnitude, than for residential property — although this could reflect the greater difficulty in measuring timely commercial property prices,” Mr Kearns said.

09/09/2022

SBS Financial Solutions is mortgage broking company providing services in Business Finance and Residential Finance. The Director of the company is CPA and has strong financial background. He has more than 10 years of experience in this industry with in depth knowledge in different financial products which suits all types of businesses and individuals.

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09/09/2022

How to get your savings back on track


With the cost of living going up by the day, managing your money can be tricky in the current environment.

If you’re trying to save for a deposit or just trying to manage your mortgage repayments, it’s even more important to try and get on track with your savings.

Here are a few ways to better manage your money.

Consolidate debts

If you’ve got a lot of high-interest debt, this is going to very quickly derail your savings plan and you could find yourself getting further and further behind.

One of the best ways to manage a host of debts is to consolidate them, which effectively means rolling them all into one new loan that has a lower interest rate.

This allows you to know exactly what your monthly repayments are going to be and hopefully, by having a lower rate, allow you to put those spare funds into paying down the debts faster.

Plan your budget

Most people that struggle with money generally don’t know where their money goes every month. The best way to tackle this situation is to get a hold of your bank and card statements and start tracking where you spend every dollar each month.

It's a good idea to track the different areas of your life where you spend money, such as on groceries, eating out, events, travel or clothes or other items.

If you can work potential monthly savings, then you can work towards sticking to a budget.

Work backwards

A clever way to save money is to make sure you don’t ever have easy access to it. If you know how much you’re trying to save, as soon as you get your pay cheque, immediately transfer the amount you want to save into your savings account.

Then use a debit card to pay for your ongoing expenses, so you’re not adding to your debts with more high-interest debt.

Using an offset account

If you have a mortgage, there are tools you can use to stretch your money further.

If you have an offset account and a credit card, it’s possible to pay all of your expenses on a credit card and park your cash in the offset account. At the end of the month, clear the credit card balance with the funds from your offset account.

What you’re doing is making the most of the interest-free period on your credit cards, while earning interest on those funds in your offset account. This might seem like a small thing, but over time you can save a considerable amount of interest which can be used to pay down debt.