Good Morning All,
As we started to get everything kicked up a gear this week.
The Roy Morgan Banks survey results on Banks was released last week showing some interesting data. They interviewed 50,000 people so a reasonable snip of society, with it showing an interesting overall increase in customer satisfaction.
ING took home the gong with 94.4% up from last year, followed by ME Bank, Bankwest, Bendigo Bank and Suncorp who showed the biggest improvement of 12.6%. The big four further down the list with CBA the winner there at 79.5%.
Overall the client satisfaction among the big four was about 77%. This survey covered 6 months ending in Nov last year.
Other stats released show that loan approvals hit an all time high surpassing $24 Billion in November representing a massive 23.7% increase on Nov last year.
No changes to rates in the last week. Banks still in the process of bringing everyone back to work, a process that usually takes till Feb. Bank processing times are still woeful especially from the big four, there have been some improvements though.
I interestingly had a valuation come in short for the first time in a while last night. It was for a vacant block of land in regional Ballarat, which happens to be quite a busy hub just outside of Melbourne. The valuer noting several times that the block was too expensive for the current market comparisons, he was also concerned that it was direct from the developer without an agent intervention. He was also commented that due to COVID 19 that it has been forecast to have a significant impact on global economic growth and the Australian economy which will likely have a detrimental impact on the property market. ( I am not sure he’s been reading the same data I have) also noting that he believed there was potential for oversupply of this kind of property in the next 3 to six months. All very interesting commentary, which in bank speak is leading to ‘not a deal for us’ or ‘unacceptable security'. Even if the client was prepared to cover the $50k difference between agreed price and the valuation.
I find this very interesting. I have several clients who have returned to Vic in the last 6 months wanting to build and buy just outside of Melb in these regional hubs, trying to buy a property has been hotly contested even during CBD lockdown. This client has said the same thing about how many people were interested and wanting to buy. All clients are saying how hard it is to get a builder too. The frustrating thing for this client is that he can only use one lender for this transaction. So we can’t go to another bank, and the Banks wont allow a ‘check’ valuation any more. There is no point in trying to argue with the valuer because that is a waste of time. The clients only hope here is that the developer agrees to reduce the price, which is unlikely. Mainly because there will be another punter who will pay, and then also likely that another Valuer will ‘see’ the value in the purchase. It is always hard in newly built areas to find that balance between comparable sales, what the market demands and what a valuer see’s the value or risk in.
Have a smashing week out there and drive safe if you are going away for the long weekend.
JC
Scenarios and rates quoted are indications only and don't take into account your personal situation.
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