Good Morning and Happy Monday!
Much talk in the last week has been postulation on whether or not there would be a Melbourne Cup rate cut. As usual they seem to be quite split as to whether it will happen or not.
I read several articles over the last week saying that the housing market was back and that prices will continue to push their way up. This may very well have some truth to it, as my Real Estate colleagues could attest. The ability to borrow will be the most interesting piece here from my perspective.
When housing prices were at their highest, those inflated prices had several issues, with clients ability to borrow as well as valuations falling short of agreed prices even at auction.
Nearly all the commentators/speculators are talking about price increases. I think we will continue to see issues around people being able to borrow, and if valuations fall short the needs for larger deposits will come into play, or place clients in a position if they have exchanged at auction looking at specialist lenders or multiple applications to complete a purchase. Making the need for patience a key in managing the expectations of vendors and agents.
I think that this makes it all the more important that a finance broker be involved in any transaction, because now more than ever you need a plan B,C and D.
The RBA and it’s governor has never been been backward in coming forward to berate the Govt on their fiscal policy. Michael Pascoe wrote a very interesting article on how the RBA’s and specifically Phillip Lowes commentary has changed. This language switch is very interesting, though the remaining commentary from him back at business for not investing especially given the low rates. I feel that the governor might be a little out of touch with what is real, because even if a proposal makes solid business sense the reluctance of mainstream lenders to accept a proposal remains time consuming.
Even in difficult markets those who are prepared to branch out can make a difference. This week saw Heritage Bank decide to expand their business banking. Additions to business banking are always welcomed especially if they are available to brokers.
Christmas is 50 days away, (*Good Lord) which means that we are already in that ramp up period and mad rush to the 25th. Most solicitors have flagged that they will finish up around the 22nd or 23rd, so if yous have a purchase you are thinking about or are struggling with approvals I am more than happy to step in and help them get sorted in the madness of the next few weeks.
I hope you all have a wonderful productive week.
I am always here to help.
Justin
P.S. if you were interested in the article from @MichaelPascoe here is a link https://thenewdaily.com.au/money/2019/11/03/michael-pascoe-rba-surrender-josh-frydenberg/
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