NAB’s guide for brokers navigating the property investor market

NAB’s guide for brokers navigating the property investor market
Written by Publishing Team

Promoted by NAB Broker.

Investors are the fastest growing segment of the real estate market. NAB supports brokers to help these clients build, manage, and grow their investment portfolios.

Real estate investors have been a prominent force in the Australian housing market over the past two years and their importance is expected to continue throughout 2022.

Statistics from the Reserve Bank of Australia show that the value of new loans to real estate investors has been on a rapid growth trajectory since early 2020, rising 86.9 percent in the year to November 2021.

Phil Waugh said brokers, as trusted advisors, are in an excellent position to help real estate investors make the most of opportunities in the fast-moving real estate market.

Real estate investment clients look to brokers to guide them through the investment lending process. As the bank behind the broker, NAB is committed to supporting brokers to better serve their customers,” said Mr. Waugh.

“With this in mind, NAB has released a Brokers Report that provides insights into the trends and market forces facing real estate investors today and in the future so that they can make the most of market opportunities and growth.”

Report called Soaring Real Estate Investors: A Broker’s Roadmap for GrowthAnd Released in partnership with CoreLogic in December 2021. It provides a practical guide for brokers that gathers insights from NAB Group Chief Economist Alan Oster, and analysis from CoreLogic. It also includes tips and advice from expert brokers who specialize in working with real estate investors, and explains how to best support investor clients, and how to get started.

The combined Australian housing market was valued at $9.6 trillion at the end of December 2021, with property values ​​up 22.1% over the year, according to CoreLogic’s latest data.

CoreLogic’s research showed that New South Wales and Victoria were the most active markets for real estate investors, although other states are catching up.

“Investors are reaping capital gains and also benefiting from higher rents, with homes outperforming units on both fronts,” said Tim Lawless, CoreLogic’s director of research in Asia Pacific.

Housing values ​​are rising at the fastest annual pace since 1989, and this trend is widespread with price increases recorded in both the capital and regional regions across the country.

While rising home prices put revenue under pressure, rising rents act as a mediator. “Record low interest rates mean that returns are still more attractive for mortgage rates than historical averages,” Lawless said.

“Continuing gains in home values, lower mortgage rates, and a wider-than-usual spread between mortgage rates and rental yields, should make investors continue to be a force within the market.”

good opportunity

Mr. Waugh said the NAB report reinforced NAB’s commitment to supporting brokers by providing concrete insights from brokers writing large volumes of investor loans and practical tips and hints for brokers on how to better build, manage and grow their investment lending business.

“Realtors have the right opportunity to educate real estate investor clients, provide guidance and demonstrate the value of working with a trusted advisor who can navigate the complexities of the market,” said Mr. Waugh.

“We continue to see growth and momentum across the real estate market. While there have been turmoil over the past few years – including Recent challenges arising due to the rise of the Omicron variant of COVID-19 – The outlook remains positive.”

Simplify and digitize the home lending experience

Understanding how to support more real estate investor clients is only one part of the equation.

Australians – whether they are investors, homebuyers or empty nesters – are looking for ways to take greater control of their finances, especially after the economic and social shocks they have suffered as a result of the global pandemic. We know brokers also need to feel confident about the entire home lending experience – ideally fast, simple and seamless.

“As the bank behind the broker, we want to be the most reliable bank for brokers and ensure a consistent service across all channels. We have made significant financial investments to ensure that our creation process is the best in the market. We are currently in the process of launching a home loan trial,” said Mr. Wu. The simple process of providing unconditional consent on the same day and ultimately within an hour in 2022.”

The NAB Guide for Brokers Who Are Navigating the Real Estate Investor Market


Last update: Jan 17, 2022

Published: January 17, 2022


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