The weekly round-up of the biggest news stories from across Momentum Media’s property titles for the week ending 14 August.
Welcome to The Adviser’s weekly round-up of the stories that are getting big reads across Momentum Media’s property titles: The Adviser, Mortgage Business, Real Estate Business, Smart Property Investment and nestegg.
We hope it helps inform you of the biggest issues shaping the mortgage and property markets.
Effective immediately, BOQ will cease lending to home loan applicants with a debt-to-income (DTI) ratio – total debts divided by gross income – exceeding 8. It will also cease processing applications from non-PAYG borrowers with a DTI ratio greater than 6.
According to Momentum Intelligence’s latest Broker Pulse statistics, ANZ continues to trail the pack, with its turnaround times increasing for the fifth consecutive month, from an average of 26 business days in June to 27 business days as at 31 July.
CBA and Westpac Group recorded the sharpest monthly increases, up by an average of three business days to nine business days and 14 business days, respectively, while NAB’s turnaround times increased from an average of nine business days in June to 10 business days.
Century 21 has revealed its C21 IGNITE model, which introduces “a new, fully supported model for high-performing real estate agents to operate their own business without the need for a traditional office shopfront”.
While remote work is not a new concept for the industry, the Century 21 concept offers up “the strength of its consumer-facing brand which similar offerings cannot match”.
Danny Fox and Jed Wood are launching Fox & Wood in Sydney’s south, with a statement announcing the independent agency’s launch detailing a commitment to “high-end, client-centric service”.
The new business venture is a product of the Eview Group model, with the group’s CEO calling out Fox & Wood as a “modern and daring brand”.
RE/MAX has announced it is expanding its operations into Maryborough, Queensland, with real estate agent Rachel Ellis starting her own agency.
“Maryborough offers something special,” she said. “The city still has its heritage but is growing, changing… moving forward, and I want to be part of it, building a team that shares my values, my passion for real estate and my commitment to this community.”
Stage 4 restrictions in Victoria have not noticeably impacted on house prices yet.
“Melbourne housing values have dropped 1.1 per cent, the numbers of owner-occupiers had increased in demand by 0.5 percent and demand from investors has dropped by 0.3 per cent,” a Herron Todd White monthly property report said.
“Melbourne CBD high-rise apartments in the city and fringe areas will suffer the largest price fall as a result of the coronavirus.”
CoreLogic’s head of research, Eliza Owen, has pointed to a number of factors, both health and economic, which are driving different segments in different directions.
She pointed out that even with government support of around $18 billion a month, cities where labour markets are more impacted are also likely to underperform, as will those with more significant exposure to overseas migration as a source of housing demand.
MCG Quantity Surveyors director Mike Mortlock believes this is a time of change, with investors now buying, on average, around 300km away from home.
“The idea of wandering too far from your ‘locality of comfort’ frightened investors in the past, so an average distance of 293 kilometres is substantial… Just 6.9 per cent of Australian-based investors bought within their home suburb. I’d suggest this is a dramatic drop from the proportion we’d have seen 10 or 20 years ago.”
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 on Thursday afternoons.
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
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