AFT News

With the Reserve Bank of Australia again deciding to leave the official cash rate for the foreseeable future at a record low of 1.5%, means Australia has faced its longest ever spell of record low interest rates and Property Analyst and Developer, Chris Anderson says it seems to be a strategy that is working.

At the same time as the Reserve Bank announced its ‘on-hold’ position for next quarter, we got the news that consumer confidence has bounced back and reversed the previous falls.
Experts say that’s as a result of upward trends in the labour market. That bodes well for the market, long-term, in South East Queensland.

We are in a transition. We’re seeing a move, driven by locals in the first instance, who are now moving on from the traditional family home base and then we’re seeing sea changers now look to the high-end quality stock that is for the first time.

While southern markets like Sydney and Melbourne are being tipped to ‘cool’ within the next few months, the South-East Queensland market remains buoyant.

There’s a growing confidence retuning to the market, no doubt the latest more solid jobs data has helped, low interest rates also assist but the offer to market also remains key and we’re seeing a more realistic approach to what people seek as to what is being developed than perhaps we have seen in the past.

We are now seeing a doubling of interest in the top end of the Redland market and that is a bell weather for SEQ. and I think we’ll see this movement extend across the board.

Interest rates watchers are now predicting rises from late-2018 and into 2019.

So, for anyone seeking a mortgage now, they need to be aware that there is only way left for rates to go.

While the RBA expected the economy to grow about 3 per cent or slightly more every year over the next few years and the popular take on that from leading economists is that RBA is likely to start raising interest rates late next year.

Smart Governments need to adapt to this trend and make sure they’re moving quickly with polices that enable not disable the sector.

The resources sector is moving upwards once again, we’re seeing solid year in agricultural industries and inevitably, property moves next.

He says the trick for buyers now is ensuring the structure of their loan.

Watch out for slick offers, there are many of them starting to resurface in the market, and there’s a number of ‘two-bob’ brokers peddling rubbish at the moment… Just remember in many cases today’s Mortgage Broker is yesterdays’ used car salesman… All they see in you is commission and tailings.

Remember it is not about getting the mortgage at any cost, it’s about getting the best deal for you for the rest of your life as this will be one of the biggest purchases you’ll make and it has to work for you, not the broker.

The Huge Crane to advance the next stage of AFT Projects’ luxury resort style development, Toondah Outlook took shape today.

Work on the 9 level project will continue across 2018 as Redlands becomes home to one of South East Queensland’s most prestigious residential precincts.

And watch out for the Lights – Rumour has it the crane will Light Up the city for Christmas!!

Property Analyst and Developer Chris Anderson is urgently calling for a widening of the terms of reference to the royal commission into the finance sector to ensure that mortgage brokers and their affiliate support networks are thoroughly investigated.

Mr Anderson says he is concerned that the current draft recommendations appear to have several key omissions which will not get to the bottom of some or the shady practices he has seen “pulled’ in recent years.

The definition of financial services entities to be considered does not appear to include those such as mortgage brokers and industry affiliated entities such as property valuation operatives.

These individuals and organisations all have a key influence on loans and interest rates. Some lenders who only require an Australian Credit Licence and not an Australian Financial Services Licence (AFSL) are not covered by this inquiry.

It needs to include affiliated legal and accounting practices, Property Valuation houses, and some development companies that offer packaged up commissions and the like to brokers. and financial planners.

You only have to look at the sorry history of the mortgage broker industry in this state to understand that some of these so-called experts have feather bedded.

Old favourites’ by Brokers such as “churning”, or moving people from existing loans to another to double dip on commissions, packaging superannuation and unnecessary insurance into loans, all in the guise of better deals, need to come under the commission’s’ spotlight.

Then there’s the locking people into fixed loans when rates are clearly stagnant or dropping, the over valuation of a property, the stacking of assets to secure loans, the lists of trickery are endless.

The best I have seen are brokers that tell their clients particular banks or institutions ‘won’t service their requirements’ because the broker wants to push them towards a loan with another intuition that pays the broker a better commission.

I am calling on all people who feel they have been short changed by financial advisors or brokers to step up.

The second task of the royal commission is to identify whether misconduct and misbehaviour can be attributed to poor culture and governance practices, and finally the commission needs to identify what changes might be made to reduce these problems.

Presenting a submission to a commission of inquiry can be a daunting prospect. Don’t let it throw you. If you feel you have a story to tell about your experiences with some of the bottom feeders make sure you put this commission to work for you.

If ever there was any doubt of the need for the mortgage broker/financial planner sectors to be front and centre of this inquiry one needs to look no further than UBS research released earlier this year.

It shows the Mortgage Broker industry is charging almost double what fees should be per mortgage and that payments are a clear illustration of excesses built into the finance system.

This independent research by leading bank Analyst John Mott is a tell all. It shows that this is an industry that adds about $4,600 to the cost of a loan and picks up around 16 % on average and does so at time when housing affordability is key.

The Mott research has shown that Broker commissions have swelled by a massive 18% since 2012 made up of over $1.4 billion in commissions and a staggering $1 million in their ‘do nothing’ trailing commissions.

Then there’s the unnecessary ‘ad ons’ like unnecessary trauma insurance coverage and life coverage they add on to the mortgagee simply to get a fatter commission take.

Potential buyers at Cleveland’s newest luxury resort Apartments Toondah Outlook, are increasingly surprised at the standard of the shopping on offer around the city. Project Developer, Virginia Anderson says many of the females are looking around and are coming to her with amazement in their eyes.

As the year rolls towards a close for 2017 we’re seeing major movement in the Redland market and across the South East. Property Analyst and Developer Chris Anderson, says it’s a bellwether change to heed for 2018. Mr Anderson says many of those typical buyers are now looking to projects like Toondah Outlook as a viable alternative that offers far more value for money.