Login
ISCOVER
Brokers are confident 2014 will deliver increased business after new home sales grew for the first time since the GFC.
The Housing Industry Association reported that new home sales surged by 14.4 per cent in 2013 – the first year of growth since 2008.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Regional Victorian firm Smart Lending has targeted $130 million of loans this calendar year, which would represent about 20 per cent year-on-year growth, said director Melissa Gielnik.
“You want to aim high – you don’t want to set the benchmark low. Our numbers have been getting stronger and stronger and each year we aim for more growth,” she told The Adviser.
Model Mortgages in Sydney has noticed the market improving as people have put the worries of the GFC behind them, said broker Virginia Graham.
“I think the reason is that interest rates are low and nobody is expecting them to go up in the near future, or when they do go up they’re expected to go up gradually,” she said.
“I think we’re in for a long, slow growth for probably the next 50 years. I think Australia is probably a solid place for the long term and I think other people are seeing that.”
Perth brokerage Rate Detective Finance is also optimistic. Managing director Warren Dworcan said 2013 had been “a turnaround year for housing across Australia”, and the momentum looks set to continue.
“We’ve definitely seen an increase in demand for properties across Perth in the past six months or 12 months. That’s due to interest rates being as low as they are and yields being as high as they are,” he said.
First Street broker Mardee Thomas said the Sydney firm had been surprisingly busy over the summer, but hadn’t detected any surge in new home sales.
“We’re probably a little bit blessed in that a lot of our business is word of mouth, so we’re pretty steady most of the time,” she told The Adviser.
However, Melbourne broker Complete Lending Care had definitely noticed an improvement, according to principal Ali Yildirim.
“Last year was terrible, but the outlook is looking good. Things have started moving a bit more and if brokers do the right thing, I think things will only get better,” he said.
Mr Yildirim said the five-staff firm expected to add a second broker later this year.
