Is Christmas a good time to rob the banks?
Mark Davis was named ABA 2017 Australian Broker of the Year and Residential Broker of the Year and has just placed second in the Mortgage Professional Australia 2016/17 awards with a shade under $300million written from 983 loans in the Financial Year. Mark is founder of Australian Lending & Investment Centre and good friends of the MATIAS Group…and also a bit of a gun on the golf course. We have pulled Mark away from his award winning investment business, his heavyweights and the driving range to hear his views on all things rates, lending and timing! Enjoy.
Luke: What do the rates do over Christmas? Is it a good time to buy?
Mark: The reserve bank rates won’t change so in theory the rates won’t do anything. They had their last meeting the other day and won’t come back til February.
As far as property goes, or lending, this is the perfect time to buy. Many buyers close up shop now which leads to some absolute bargains between now and early new year. Why? There is less competition, more opportunity to negotiate – in both investment and residential.
However, holistically it isn’t a great time to buy in Melbourne to invest, all our customers are looking at buying interstate at the moment. People are looking at Adelaide, Perth, Ballarat and Bendigo, outside of Melbourne CBD. The market in Melbourne hasn’t moved. We can’t tell people where to buy, but our Buyers Advocates are suggesting interstate is coming up as a far better opportunity.
Luke: Rate-wise…What should people be paying?
Mark: What we are talking about at the moment is considering second tier lenders and we are asking why have faith and loyalty to big banks any more? Especially as their rates have gone up four or five times from an investment perspective. A lot of second tiers are smashing the majors. People don’t go to second tier lenders because of the perceived risk – however the risk is minimal as they are lending to you, they are giving you money not the other way around.
It is just a shift in mindset for people. You can keep your personal banking with the major banks, but a second tier is going to give you a better rate and loan structure to help you save some money at the moment. These are the discussion points we have with our clients and for the sake of a conversation, it could save you $$’s.
Luke: When people have a bit of time off to think, are you guys available over the Festive period?
Mark: Always open and here to help. Only off on public holidays. For a confidential conversation please contact us to coordinate a meeting.
Luke: Can you please tell us about the relationship between ALIC and Matias Group?
Mark: We trust Matias Group and confidently send all of our clients to you. We have a similar drive and way of operating so it is a great partnership…and I know I can always beat you on the golf course!