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Several top loan writers have warned of market challenges over the next 12 months, but that despite continual flux “there’s always opportunity” for the third-party channel.
Speaking to The Adviser, some of the industry’s Elite Business Writers discussed how they see their respective markets playing out over the next 12 months.
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Josh Bartlett of Loan Market emphasised: “As a broker, it doesn’t matter whether the market’s slow or fast, there’s always an opportunity. There are always people consolidating debt, there are always people selling houses or upgrading.”
Referring to the market in Victoria specifically, Mr Bartlett explained that the last 12 months have been relatively difficult with “a lack of listings” and thinks that the real estate market may “dip just a little bit” in the coming months.
The Australian Lending and Investment Centre’s Mark Davis echoed this sentiment, adding that “times are getting harder” in the Melbourne market.
However, like Mr Bartlett, he highlighted that as the market slows there could be more opportunity for professional mortgage experts, especially when it comes to investors.
“If you’re an investor, you don’t want to buy when the market’s high,” Mr Davis explained. “When the market cools, all our customers will come out and buy. So we actually want the market to cool so we’ll be able to write more.
“We believe it has too cool because it’s had too strong a time, which means that’s going to bring opportunity; so we think it’s exciting times.”
Deslie Taylor of Mortgage Choice Ormeau predicts that, in Queensland, lenders may start to “pull back” in regards to the amount that they will lend against properties, due to a high influx of investors at the moment.
“I think lenders will… be very picky about how much they will lend in particular areas given that there’s a high volume of investment,” Ms Taylor said.
“I think it’s going to be harder for people to get into that market without quite a big deposit. [But for] your standard home buyers, as long as they tick all the boxes, I don’t think there’s going to be much change there.
“But investors are going to need to come up with a little bit more money,” she concluded, adding that this will particularly be the case for inner city apartments.
[Related: Investor lending ticks up in July]
