What your clients need to know this EOFY

What’s going on in the property market?
Is now the right time to buy? Should I sell? What about investing? All questions that many Australians are asking right now. We gathered some insights from our partners at Ray White and want to give you the low down. 

Last month, the national auction clearance rate was 73.3%. A great result in any market. Plus, Ray White’s national auction clearance rate sits at 53%, this is only marginally down from the 57% recorded in the peak 2019 spring selling season and ahead of where it was in May 2019 at 47%.**

There’s still lots of questions to be answered like what happens when government stimulus falls away, and if unemployment rises and remains stubborn? And what will be the impact of less immigration? However, with interest rates at a historic low and a competitive market, buyers still have a good chance at reaching their property goals.

Are rates getting lower?
Rates are at a historic low and have been for a while, with some banks offering Fixed Rates at a discount to the variable offering. What are the benefits? Lower rates mean your clients could pay off their loan faster, lower their repayments, and save more (and that’s just the beginning). I can help by scouring the market of over 60 banks and lenders to negotiate a more competitive rate. 

Is there a long wait time to get a loan?
Due to the current environment, some banks and lenders have been heavily impacted with overseas processing centres closed or at reduced capacity, while others have had a big influx of clients. 

Turnaround times range from 1 day responses to an excess of 25 days. The good news is I have access to over 60 banks and lenders so I can help find the right deal to meet your clients needs.

Banks offering cashbacks? 
Ever heard of a cash back or refinance rebate?* Thanks to COVID-19 many banks are offering cash back or refinance rebates. They are usually introduced by banks or lenders to give them a competitive advantage. 

Many are around $2,000 but we've seen one up to $4,000. Of course it all depends on the client's situation and these offers are only for a limited time so require quick action. I can help your clients understand what their options are and if it’s right for them.

Looking to buy your first home? 
The First Home Loan Deposit Scheme (FHDLS) was introduced to help first home buyers get their foot in the door sooner. It helps provide a guarantee to the bank or lender which could save thousands of dollars while potentially removing the need for first home buyers to obtain Lenders Mortgage Insurance (LMI). 

Although the spots for the 2019/2020 financial year have been filled, another 10,000 spots will be available come 1 July 2020. 

Today (Thursday 4 June, 2020) the federal government announced a new $700 million housing stimulus package, "Homebuilder" aimed at rekindling the property market.This is good news for those renovating or considering a new build with grants of up to $25,000 available after 4 June. 

Recipients will need to spend at least $150,000 of their own money and the government estimates approximately 27,000 grants will be handed out. Let me know how I can help you navigate this.

Did somebody say EOFY? 
The end of financial year is fast approaching and due to the current climate your clients situation may be different to previous years. In saying that, they can still take advantage of the slow moving car sales and I can help find them the right deal during this pandemic. 

Plus, good news for business owners with the increase in the government asset finance write-off has now increased to $150k.

Tips for property investors
There are many questions that are hard to answer right now; 

Is now a good time to buy? Should I hold off selling? What’s next for our economy and the property markets?

While we don’t have a crystal ball, we can help ensure your clients are in the strongest possible financial position for their situation. 

  • Take advantage of low rates - we’re seeing some in the low 2s (of course it depends on your clients situation and specific circumstances) 
  • Understand what equity your client may have available in their current property 
  • Negotiating payment-deferrals 
  • Exploring hard-ship options
  • Connect your client with financial planning experts to explore a plan to grow their wealth. 

Whatever your situation, I’m here to help. Make the call. 

*Cash backs and rebates subject to lender terms and conditions and can be amended or varied.**Source: https://www.linkedin.com/pulse/ray-white-weekly-auction-results-23-may-dan-white/ 23 May 2020. This information is provided on the terms and understanding that: Loan Market Group Pty Ltd, Loan Market Pty Ltd provide this information for discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements.  Loan Market Pty Ltd | Australian Credit Licence 390222.