Concerned about loan payments on a big bill month, worried about going on maternity leave, thinking you would like your payments seasonally? Subject to credit approval with lender,  there are a number of other structured repayment options which can be built into the repayment arrangement on a consumer loan /chattel Mortgage / HP / Lease;  Some structured loan examples –

·         Drivers/Anniversary package – Nil repayment on the vehicle anniversary of the purchase for the duration of the loan (to assist with registration and servicing costs)

·         Family Package - An extra $50 per week is added to the repayment amount for the first 9 months, followed by significantly reduced payments for 12 months to accommodate maternity leave, then returning to the standard repayment amount for the remainder of the loan.

·         Equity Package - Designed to increase the repayment commitment in the first two years of the loan to help address potential minus equity. The extra repayment amount can be customised for the first and second 12 month periods, reducing to the standard amount in the third 12 month period, followed by lower repayments for the remainder of the loan.

·         Tradie’s Package - Half repayment every January and February for the duration of the loan to accommodate the anticipated Tradespersons fluctuating cash flow over the Christmas / New Year period.

·         GST – GST component of an equipment purchase is built into the (say) 4th month of a contract as a repayment after it has been claimed back in their BAS;

·         Seasonal Payments – Common when lending for Agri businesses and those effected by seasonal conditions (such as the ‘Wet Season’ in the tropics) where payment/s are structured to coincide with receipt of income (e.g. one annual payment due when Wool Cheque is received). .

·         High Start Payments – Payments can be accelerated in (say) the first 12 months to coincide with increased income

·         Low start Payments - Payments can be reduced to be increased at a later date to coincide with a known event that will allow higher payments to be met at that time, not winning the lottery but, say, another loan being repaid or a property settlement being finalised. 

Capital city dwelling values posted a 2.3% jump over the month of March 2014 with every capital city recording a month-on-month rise in dwelling values.

History tells us that very low interest rates can bring borrowers into the market, fueling demand and creating what is commonly referred to as a ‘Housing Bubble’.

This can be defined as “a rise in housing prices fuelled by demand, speculation and the belief that recent history is an infallible forecast of the future.”  Housing bubbles usually start with an increase in demand, in the face of limited supply that takes a relatively long period of time to replenish and increase.

Continued Growth In Housing Market

Melbourne posted the highest level of growth at 5.4 per cent over the quarter with Sydney and Hobart also recording a strong result in the March quarter with values up 4.4 per cent and 4.7 per cent respectively.

According to RP Data research director Tim Lawless, half of all Australia's capital cities are now posting record high dwelling values, with Sydney's housing market showing the most substantial increase beyond its previous market high.

"Sydney dwelling values are now 15.8 per cent higher than their previous peak, substantially more than Melbourne where dwelling values are 4.7 percent higher than their previous peak. Perth and Canberra values have risen to be 2.9 and 1.2 per cent higher than their previous high point, respectively," Mr Lawless said.

Properties Selling Quicker In Current Market

There are presently less houses for sale than the same time last year and they are selling in a relatively short period of time. 12 months ago properties remained on the market for an average of 70 days, this has reduced to 51 days in the current housing market.

Recently listed stock is up 18.8% but the total number of listings is trending 3.8% lower than the same time last year. This suggests there are a number of new properties available however, the increase in demand is seeing properties sell at breakneck pace reducing overall stock levels.

Based on today's RP Data Rismark results, dwelling values have risen by a cumulative 15.8% since the growth cycle commenced in June 2012. Mr Lawless noted that a majority of this growth has occurred since June last year.

Looking at the performance of the housing market across broad price segments, the premium market remains as the best performer. After posting a more substantial correction, dwelling values across the most expensive quarter of the market were up 7.2% over the past six months while the lower priced quarter of the market saw values rise by a lower 4.9% over the past six months.

Rental Yields Down Overall

Rental yields continued to taper over the month of March 2014, with the typical capital city house providing a gross yield of just 3.8% and units showing a higher 4.6% gross yield. 

According to Mr Lawless, gross rental yields have been falling since June 2013 when the pace of dwelling value growth picked up substantially. While capital city home values are up 12.5% since May last year, weekly rents have increased by just 1.8%.

With the growth in home values, senior research analyst with RP Data, Cameron Kusher advises “it is reasonable to expect a further deterioration of rental yields over the coming months, particularly in Sydney, Melbourne and to a lesser degree, Perth where value growth has been much stronger.”

(Source: rpdata.com)