The void property investors left behind

MPA asks three leading aggregators who will replace property investors in the real estate market

Brett McKeon managing director Australian Finance Group
“Any good business should always consider looking at other opportunities to grow. There will still be plenty of investment lending opportunities and potentially, as some of the heat comes out of the market, more opportunities for upgraders and first home buyers. The fundamentals of the Australian economy will continue to support investment loans. Our growing population, low unemployment rates and the tax advantages of negative gearing are all sound. We would need these to shift significantly off track to see a broader cooling of the market. It is also important to remember that we have more than a million Australian workers linked to housing and the construction sector, so a managed outcome is desirable for everyone in the debate. This debate highlights the importance of diversification. Take the time to invest in yourself by upskilling with opportunities like car lending and insurance referrals.”

 

Gerald Foley managing director National Mortgage Brokers
“As APRA demands banks reduce their overall lending levels, with a particularly strong focus on slowing the level of investment lending, banks now need to increase loans to owner-occupiers. As investment lending becomes subject to tighter credit rules, increased carded rates and removal of pricing discounts, we will start to see corresponding interest rate discounts and other sweeteners such as ‘cash back’ deals to home buyers and those looking to refinance existing home loans. And with fewer local and overseas investors in the market, prospective home owners – who recently have been left feeling largely excluded from the property game – should feel more confident and inclined to make an offer to buy or bid at auction. Additional tightening for lending on residential development sites also will see more realistic prices for houses that will be retained as homes.”



Matt Lawler CEO Yellow Brick Road
“With the property investment space changing rapidly, brokers need to look for the low-hanging fruit. Yellow Brick Road recently conducted research of Australians who had obtained a home loan more than two years ago. The findings were very surprising. Despite the well-publicised historically low interest rates, 83% of Australians said they hadn’t refinanced in years. Even more shocking, 40% had never refinanced, and almost 20% hadn’t in over five years. There is still a huge opportunity for brokers to refinance existing loans. We found people don’t switch because they don’t think they will save, they worry the fees and charges will outweigh the benefits, and it just seems too hard. For many people, this is simply not true. Low rates make it an ideal time to boost the refinancing portion of your business by educating consumers on the savings and benefits.”

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