Ensure you never miss an issue of the
real estate business bulletin
You’re not average, and neither are your buyers

You’re not average, and neither are your buyers

by Sally Tindall 0 comments

As an agent, you probably get annoyed when you hear the media talk about the national property market. Why? Because of Sydney.

The Sydney boom is now over. In the last three months of 2017, the median price fell by 2.1 per cent, according to the latest CoreLogic stats. This downturn has started to affect our national statistics, which also fell over the last quarter. It has also started to influence national property journalists who are focused on Sydney’s fall from grace.

Which is why 2018 will be the year of negative property stories.

But Australia doesn’t have one single housing market. There are 560 councils scattered across the country and, if you’re like most agents, you probably work in just one or two of these areas. Perhaps three at a stretch. That’s your property market, and in your local patch, conditions might be very different. Everything else should be largely irrelevant.

While it’s easy enough for you to ignore the media hype, it’s worth pointing out any anomalies to your clients. After all, it’s impossible to stop them from reading the headlines, so a few well-timed phone calls to update them on their local market might be worth making throughout the year.

Not all mortgages are created equal

Just as Australia doesn’t have one single housing market, it also doesn’t have one single mortgage market. That’s something to bear in mind when talking to buyers.

Different borrowers get different rates. RateCity.com.au’s home loan database shows the different average variable rates for four broad categories of borrower. These are:

• Owner-occupier paying principal and interest = 4.33 per cent
• Owner-occupier paying interest-only = 4.68 per cent
• Investor paying principal and interest = 4.78 per cent
• Investor paying interest-only = 5.07per cent

The four broad categories of borrower can then be broken down into numerous sub-categories based on LVR, loan size, employment status, postcode and other variables.

That’s why some owner-occupiers have home loans that start with a “3“ while others have loans that start with a “6”.

So, just as you should take commentary about the property market with a grain of salt, you should also keep an open mind whenever the media discusses interest rates. Even though average interest rates are likely to rise in 2018, rates for certain types of borrower might actually go backwards, particularly if they opt to refinance.

You’re not average, and neither are your buyers
lawyersweekly logo

Sally manages the RateCity editorial team, producing consumer-focused insights into personal finance and cost of living issues.

She is passionate about helping everyday Australians get access to affordable finance options without falling victim to marketing ploys.

Sally is experienced in finance issues, having worked for the Institute of Chartered Accountants, the Prime Minister of Australia Julia Gillard, NSW Minister for Finance and Accenture Consulting in the United Kingdom. 

At the federal government, Sally worked on three federal budgets targeted at easing the cost of living, providing greater access to affordable education and providing targeted financial assistance to in-need families. She also participated at multinational finance forums such as the G20 and APEC.

She is a regular contributor to news outlets including Fairfax, News Ltd, Money Magazine, Yahoo, Ninemsn, and a regular commentator on television and radio about personal finance matters.

More articles from this author:
promoted content
Recommended by Spike Native Network
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?