Hot Property: The biggest property headlines from the week 22-26 June 2020

We hope it helps inform you of the biggest issues shaping the mortgage and property markets.

ASIC releases BID guidance

The corporate regulator has published the long-awaited guidance concerning the application of the best interests duty on mortgage brokers. 

ASIC’s high-level, principles-based guidance seeks to outline obligations under the Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers [2019 Measures]) Bill 2019, but does not prescribe minimum standards of conduct nor impose new or additional obligations.

Bank to reject HomeBuilder-dependent applications

Adelaide Bank will not consider applications for its Connective Select white label product from borrowers depending on the federal government’s $25,000 HomeBuilder grant to complete a renovation or construction project – and if the HomeBuilder grant has been disclosed but will not form part of the funds needed to complete a project, then conditional or formal approval would exclude considerations of the $25,000 grant.

Australian Broking Awards 2020: Residential Broker and Customer Service - Office finalists revealed!  

A number of categories have already been announced: residential broker, commercial broker, customer service- individual, regional broker, industry thought leader.

Approximately halfway through finalist announcements as of 25 June episode air time. 

Agents spill on why now is the time to sell

Ray White Group managing director Dan White has said it’s important to understand that the real estate industry has remained very active despite restrictions starting two to three months ago: “During April and May, we served nearly 9,000 Australian families and businesses, representing over $4.4 billion of property. We also conducted 1,025 online auctions, with a better auction day clearance rate than the same months last year.”

What’s in store for the property market post-COVID-19?

It is unlikely that the Australian property market will sustain any long-term falls due to a combination of migration, foreign investment and government intervention, writes David Hancock. Many markets across Australia also have low supply with demand likely to continue to grow.

Beware building for the sake of free money

First home buyers have been warned not to dive into a property purchase for the sake of government grants without properly considering the future return on that investment, a property investment consultancy has flagged.

Perth agency fined for forgotten bonds

An “administrative oversight”, which saw a Perth real estate agency fail to lodge a number of security bonds for up to three months, has led to $5,000 worth of fines.

MI Real Estate Pty Ltd, trading as Soco Realty, had accepted three security bonds from tenants but failed to lodge them as soon as practicable, or within the required 14 days.

‘Optimistic attitude’ sees results for Raine & Horne

A combination of instilling an optimistic attitude and utilisation of technology available has paid off in spades for the team at Raine & Horne in the New England region: Raine & Horne Armidale | Glen Innes has managed to sell several properties “sight unseen” in May and within two weeks of listing.

Regional areas the real winners of COVID-19

There’s been a notable surge in demand across many Australian regions: Real Estate Buyers Agents Association (REBAA) has highlighted how buyer’s agents are witnessing “a steady surge in regional property markets” for both investors and owner-occupiers, despite the COVID-19-driven downturn.

According to REBAA president Cate Bakos, the demand is being partly driven by young families, relocating workers and retirees who are looking to optimise their superannuation savings.

For more analysis and insight into these stories, tune in to Momentum Media’s new live talk show on Facebook, What’s Making Headlines, featuring Momentum Media’s executive editor - real estate, Phillip Tarrant, and business coach and Real Estate Gym trainer Tom Panos. The live stream can be found via The Adviser’s Facebook page every Thursday at 1.30pm.