Real Estate Plus E-News - November 2017

From the Desk of Our CEO

Christmas is on our doorstep and we like many are looking forward to the break. It’s been a tough year for many and fingers crossed 2018 is not a repeat in many ways. We have seen some increased activity in sales in our hills offices in recent weeks which is something we would expect for this time of year but certainly a relief to actually see sales flowing.

Lower demand areas are still slow but sales are occurring and in terms of property management it’s certainly been a year for adjustment with rents falling throughout the year as well as increase vacancy rates throughout Western Australia. For landlords, you have been caught up between a dumping of properties into the market for sale by developers who have not been able to sell their product and taking at times lower rents on newer properties which over the last eighteen months has certainly impacted areas such as Midland.

I know of one developer who has in the last twelve months introduced almost twenty properties into the Midland and surrounding areas and two other developers who introduced another twenty so is a big influx in a short period. Older properties have had to compete with newer and brighter properties which has presented a challenge to landlords. For many of us it has been a confusing year in terms of real estate. When you listen to the booms of the east you wonder are we in a different country all together. The east is beginning to slow which hopefully will help us and remove the focus off them. Having said all that our better times did roll along longer when other states were struggling so we can’t be too selfish.

There are opportunities in any market if you do your homework well. Interest rates are looking to stay around the same going forward and I can’t see there being big changes in that in the coming year which should at least maintain most people’s financial situation. However, the banks have changed many of their conditions for loans and the old interest only loan is proving harder to obtain and many are having to convert to principal and interest loans which has affected their cash-flow considerably and put pressure on some.

APRA, who oversees the banks, made a number of changes in the last year or so which has also impacted us in terms of how we borrow so all these things do add up. In better times we take more risk and in quieter times we do sit back more but I think we will see more people re-enter the market in the coming year both in sales and renting. I have children in their twenties and I am encouraging them to enter the market and take advantage of the current conditions in terms of rates and the quality of what is available. I also think many others will as well and investors will refocus here in the not too distant future.

We are looking at closing over the Christmas period so the time between Christmas and New Year our office will be closed to the public but our after-hours services will be still operating in support of our tenants and clients. Our office will reopen on 2nd January 2018. I would like to take this opportunity to thank everyone for their support throughout the year. I know it has been tough for many and let’s look to 2018 with a positive outlook and fingers crossed and hope our discussions this time next year are far more enjoyable. I saw this saying some years back and I guess this is what I am hopeful of so I am sharing with you.

“When it rains it pours, but soon the sun shines again. Stay positive. Better days are on their way.”

Milton Rendell, CEO

 

Why Use A Finance Broker?

There are literally hundreds of different loan products available right now. While this makes it harder for you to choose the right loan, it does mean that there’s an ideal lending solution for you out there. It’s just a matter of finding it. And that’s where a mortgage broker comes in. We shop around for a loan that’s right for you and your circumstances. You could be a first home-buyer, looking to re-finance, building your investments or looking for a competitive commercial finance product. We stay up to date with constant changes in the home loan market and new products. This not only means we can go in to bat for you and match you with the right solution, but we can also negotiate great rates on your behalf.

It’s easier. We start by meeting you at a time and place that suits you – at home, at work or over a coffee; during the week, at night or over the weekend – we’re always flexible. We’ll look at your current loans and financial circumstances and then research and find the right solution for you. We take care of the paperwork, manage the application process and then take it through to settlement.

It’s fast. We can get things moving quickly. We’ll work with our lender networks and contacts, securing your finance as fast as possible.

It’s more than just loans. Lenders will ask you to take out insurance on your new property. We can help you arrange cover to keep the approval process moving quickly and hopefully save you some money.

It’s all about you. We work for you and not the bank. We get to know you personally to understand your unique circumstances. From our experience we know which lenders will have the product that will meet your needs. And we negotiate for what’s right for you, not what’s right for the lenders. We keep lender competition alive!

Daniel Leung, Broker – Plus Loans

 

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Real Estate Plus E-News - November 2017