Equity Finance Solutions

NAB sounding a lot like CBA It’s not surprising. While interest rates have climbed so have bank Net Interest Margins. If it weren’t for brokers banks would be loving their loyalty tax benefits. Just last week we refinanced a Big 4 client paying 8% on his 60% LVR owner occupier home loan, that has never been reviewed. Yes 8! He knew he was getting ripped but didn’t have the time. Saved an existing Big 4 client 0.4% just by repricing all their $5m of loans when they purchased another investment property. Thats $20k a year interest saved btw out of the banks margins. A decent ongoing pay rise in anyone’s books. Several non majors will not discount an existing loan on their books under $500k had to refinance clients away to save them thousands. It’s not surprising at all that banks want to lend through branches, it’s cheaper but it’s almost always a worse outcome for a client without choice or knowledge of what else the market offers. Australians are voting with their feet now at 73.7% of all loans written via brokers. Keep competition alive and keep the money in your own pockets. It’s all about choice and competition is healthy for any marketplace. It drives better client outcomes, no matter what the banks say. They are in it for their shareholders, our mortgages are how they make those share prices soar. Be smart, call your broker. 👌 That money is better spent on your lifestyle and family. Enjoy your werkend!

Was great to bring the building at 117 Old Pittwater road back together for a #MelbourneCup lunch to get to know their businesses and introduce ourselves as investment property specialist #BuyersAgents and #Mortgagebrokers. Congrats to the lucky 🍀 winners of the sweeps and thanks to #TheHive117 for the fantastic catering and staff. I’m not usually one for a cup day, but that was fun networking.

Property price update Australia has a two-speed property market, the latest CoreLogic data has confirmed. * Over the three months to October, Brisbane, Perth and Adelaide recorded strong price growth. * By contrast, prices went backwards in Melbourne, Hobart, Canberra and Darwin, while inching forward in Sydney. “A combination of less borrowing capacity and broader affordability challenges, as well as a higher-than-average share of investors and first home buyers in the market, is the most likely explanation for stronger conditions across the lower value cohorts of the market,” according to CoreLogic’s research director, Tim Lawless. At EFS Buyers Agents we analyse the entire market, to find suburbs and properties that are likely to outperform the median by analysing 15 key data points 📈 📉and studying both leading and lagging indicators of growth. #property #realestate #homeloans

Inflation falls to 2.8% There were two good pieces of news in the latest inflation data from the Australian Bureau of Statistics. First, the consumer price index (CPI), which measures inflation, fell from an annualised rate of 3.8% in the June quarter to 2.8% in the September quarter, bringing it back to within the Reserve Bank's target range of 2-3%. Second, inflation rose just 0.2% in quarterly terms between June and September (after rising 1.0% in each of the previous two quarters), suggesting the rate of price growth in the economy has dramatically slowed. This makes my prediction of a rate cut in December a little stronger. #economy #homeloans #money

Bring back the future.

Population growth putting pressure on rental market. The national vacancy rate has tightened, falling from an already-low 1.3% in August to 1.2% in September, according to the latest data from SQM Research. That means, across Australia, only 12 out of every 1000 rental properties were vacant during the month. SQM managing director Louis Christopher forecast that the vacancy rate would fall further in October, although he doesn’t expect this will lead to a surge in rents. “However, the national rental market remains in severe shortage and, barring some exceptions, is not expected to materially soften out of the rental crisis for some years,” he said. Ongoing strong migration growth, initially forecasted by SQM to materially slow in 2024 towards federal Budget targets, has not materially slowed. Total population expansion for this current calendar year is now expected to be higher than 500,000 people; and so, this rapid population growth will continue to keep pressure on the rental market. #property #realestate #homeloans

Unemployment remains at 4.1% The unemployment rate continues to track at low levels, despite weakness in parts of the economy. The national unemployment rate in September was just 4.1%, the same as the previous month, according to new data from the Australian Bureau of Statistics (see graph). Meanwhile, the state-by-state unemployment rates were: * ACT = 3.4% * WA = 3.6% * NSW = 3.8% * Tas = 4.0% * Qld = 4.1% * NT = 4.2% * SA = 4.3% * Vic = 4.4% The Reserve Bank of Australia has been trying to walk a fine line – make interest rates high enough to slow the economy (and thereby reduce inflation) but not so high that unemployment rises significantly. With unemployment remaining at such a low level, the RBA will think twice before cutting interest rates. However, this is just one measure, inflation is falling and GDP is at very low levels, the AUD is capable of handling a few rate cuts. I’m still forecasting a rate cut by Christmas, with a stern note from the RBA that the inflation trend downwards must continue (insert hawkish warning). #economy #jobs #homeloans

* Are you waiting for rates to drop before investing? * Are you waiting for prices to drop? * Are you too busy to take action? * Are you too sceptical for your own good? If so read on….as you just said NO to a $100k pay rise ongoing every year, for doing no extra work. Just last year (2023) my team and I made many of my clients over $10k per month, for 12 consecutive months, some made $15k per month….. on one single $550k property. Many clients purchased 2-3 properties off the back of this growth …. Within a span of 12 months. Many of them were waiting for “insert excuses” before investing, until they spoke to me …. ALL of them are glad they didn’t wait. You will NEVER save faster than a rising market. Don’t try. During COVID I bought 3 properties. Last year I built 3 and bought another. They have grown over 10% averaged year on year. Whatever your life goals or motivations are …. You only get so many property cycles before your risk profile changes. Don’t waste time. 10 years go by quick. You could have created over a million in 10 years, to help with your retirement or setting your children up for life. Don’t waste time. Would you like to have bought a few more properties in 1990? What do you think property prices will be in another 34 years?

Lenders urged to make refinancing easier “Mortgage brokers are saving Australian borrowers an average of $2,976 per annum through repricing or refinancing their home loan to a better deal,” according to the Mortgage & Finance Association of Australia (MFAA), which is why it has called for lenders to make it easier for borrowers to refinance. In a submission to a Senate inquiry into home ownership and the country's financial regulatory framework, the MFAA recommended that lenders institute a faster, smoother discharge process – as previously recommended by the ACCC Home Loan Price Inquiry Final Report. I have always maintained that allowing a broker to contact a bank to initiate the discharge process is the way forward, clients do not want to call a 1300 number and wait on hold for an hour to speak with customer retentions. This could be an hour and a half long process between a 9-5 workday. “Reducing unnecessary barriers and bottlenecks to refinancing will support a more competitive lending market that benefits both borrowers and the broader economy. A streamlined and efficient discharge process enhances consumer choice, empowering borrowers to make better switching decisions – a powerful combination that delivers better consumer outcomes, including savings on their home loans.” The latest Australian Bureau of Statistics data show that mortgage borrowers refinanced $199.4 billion of home loans with external lenders in the year to August (see graph). #property #realestate #homeloans

What’s the number one reason people invest in property? To provide financial security for themselves and/or their family, according to a survey of more than 1,100 existing or potential property investors by the Property Investment Professionals of Australia, an association representing buyer’s agents. That answer was chosen by 92% of respondents. Meanwhile, 83% of respondents said their goal with property investing was to self-fund their retirement, thereby avoiding the need for any government support. By contrast, anyone who subsists on the age pension has to live a very frugal existence – the maximum rates are about $30,000 per year for singles and a combined $45,000 for couples. 100%+ of our clients, that have worked with us for 5+ years will never get the pension - as they will never qualify! That is one of our goals. #EFS are also corporate members of #PIPA who strive for excellence in the property industry. Where do you get your advice from? #property #realestate #homeloans