Great information from our local Broker Adam Wallace-Harrison
Hope you've had a good weekend of opens. With so much going on I thought Id address a few key topics and give you an idea what I'm seeing from my side of things.
1) I personally am seeing a massive increase in buyer inquiry, I believe with the election result buyers have gone from sitting on the sidelines and waiting to see what Labor will do, to now getting their ducks aligned so they're ready to pounce. Certainly has returned the market, potential rates cuts on the horizon and talks of easing lending restrictions are giving buyers confidence (They're calling this the SCOMO effect ;) So hopefully you will see new buyers enter the markets in the next couple of months.
2) There's been a lot of talk about APHRA lowering the assessment rates from 7.25% to 6% I haven't seen any lenders make these changes just yet but when I do I will be sure to let you know. To give you a guide that will increase somebody's borrowing capacity by about 100k (obviously a case by case example) which often whats required to get your sales over the line. Having said that I'm not convinced banks will just open the flood gates again so any talk of changes will be taken with a grain of salt. I believe the biggest issue with lending now is around how they assess living expenses as this is often the thing that brings borrowers unstuck and it's usually because its not been presented correctly to the bank. This is where brokers come into our own as we know what lenders will work and what won't.
3) Finally I am amazed by the interest rates which are coming through at the moment. Two months ago you would have been lucky to get an owner occupied loan at 3.79%, now we have Interest Only Investment Loans at 3.79%. This is a massive drop and should re-ignite investors into the market if we can spread the word. I hope we're going to see investors and first home buyers coming back into the market. If you have buyers sitting on the sidelines then this would be a good message to send to them.
As always happy to help if required.