CBA customer satisfaction drops

Who remembers the last Melbourne Cup day rate rise from the Commonwealth? Way above the RBA increase? Well, the latest survey shows that they're the only lender to suffer a drop in customer satisfaction. Quite a price to pay! There are lots of offers to switch banks at the moment. Did you know your mortgage broker can also access these offers and others that aren't advertised? If you are a current "unhappy" CBA customer then you might want to talk to us!

Selling property? Top 6 tips.

1. Most people rely on first impressions more than they'd admit. Ever heard of 'street appeal'? That's the aim.
2. Make sure you target your advertising to get the best bang for your buck. Do you need a colour brochure? Ads where your buyers will see them are better.
3. Get a good agent. They'll be working for you so interview them. Pick one that can negotiate you the best deal. Get a referral from a gun salesperson!
4. Know your market. Don't waste everyone's time (and your money) advertising a property for a lot more, or less, than it's worth. Do your research without emotion, if you can.
5. Once they're in the door, keep the street appeal going. Clean and clear to make rooms look bigger. Let in light (and dust!)
6. Small repairs are OK. Several small jobs to be done might put off a buyer or two so take the tidying up a level and fix broken roof tiles, fence palings, etc. Buyers probably want to pick their own new bathroom, but not want to replace the tap washers.

Investors on the comeback trail!

The average weekly rent in Australian capital cities increased by 2.7% on average last year and is predicted to jump in the next twelve months due to low vacancy rates. Which strengthens the argument for buying - whether to live in or to rent out.

Investors are coming back into the market: a recent NAB survey says 33% of purchases will be by investors in the next year. Lower returns on the stock market make property look attractive and many people feel pretty comfortable doing their own research, unlike shares. (If you aren't one of them, consider talking to a property advocate.)

Also notable is the alleged raid on Melbourne property by cashed up sandgropers. (If you know any, refer them to us!) The property market there has gone backward of late, unlike the Vic capital which crept up 2.5% last year..

How big can it get?

Victoria gains nearly 80000 new residents a year. That's a lot of new homes needed, on top of existing demand. You would have to think that it puts a floor under property prices and pushes up demand for rental properties and, in turn, rent.

We're certainly seeing more enquiry from first time investors than ever before. They're looking to buy anything from a two bedroom flat 5-10 kms from the city to a four bedroom house 20+ kms out.

Infrastructure continues to restrict growth in certain parts of Melbourne, at least, concentrating it in others. Horses for courses - you need to know what you want to achieve from a property before you even start looking. And, needless to say, get your finances in order before you start so you don't waste time looking in the wrong place.

More on population growth and what it might mean for we Vics here.

They've done it now!

Wayne Swan has been very keen to ban all exit fees on home loans and now he has his wish. It sounds like a good idea however it could pose a serious risk to competition in home loans. The smaller and non-bank lenders can't absorb high upfront costs the way the big boys can, so it's likely they will have to charge higher upfront fees to remain viable.
Whereas before only borrowers who left their lender early incurred fees, now everyone will have to share the pain.
Watch this space.......
(Want to know more? Take this link.)

Broker clients are happier!

We always thought our clients were happy souls (in the main). Now here's proof!

According to the eighth MFAA/Bankwest Home Finance Index survey, 67 per cent of respondents felt they got a better home loan deal from a broker than a bank.

MFAA chief executive Phil Naylor said the research had revealed that borrowers liked using brokers because they are knowledgeable and have access to a wide range of lenders.Experience was also a strong indicator, with 30 per cent of respondents saying brokers are more experienced than lenders, up from 24 per cent last year.

Since many of us left banks to become brokers, that's well known to us. Great to see the perception catching up to the reality!

Back to the future?

Some of you may remember the Bank of Melbourne from the ‘90’s. It was a great bank and dear to many Melburnians’ hearts. Westpac bought the business, kept the status quo for a while then got rid of the brand, switching all existing branches to Westpac.
Guess what? They’re bringing it back. Apparently their research says that the Bank of Melbourne brand is fondly remembered in Victoria so the St George brand is going and we’ll have Bank of Melbourne – and Westpac of course! Read more here.


I wonder if they are bringing back the service that made us all so fond of BOM? We’ll be watching!