Confidence high, while graduates flood market

by Caroline Dann27 Sep 2012

Good news for brokers: homebuyer confidence is strong, while graduates could present a new, valuable revenue stream, according to Genworth.

Genworth’s latest research shows homebuyer sentiment at a post-GFC high, while a surprising number of graduate property investors are flooding the market, it said.
“In Australia, we have a very debt-conscious society. In the UK, especially pre-GFC, lenders and borrowers were a lot more gung-ho. Lenders here don't have a big appetite for lending at greater risk," researcher Alan Shields told Australian Broker Online.
The insurer’s bi-annual Homebuyer Confidence Index showed a 2.2% increase in positive sentiment from March 2012, bringing it to 98.4%
More than half of those surveyed believe now is a good time to buy.
It was a very positive assessment of Australia’s homebuyer market, defying several negative assessments by analysts, including BIS Shrapnel, over the past two weeks.
However, Shields said the rise in graduates owning an investment property was one of the most surprising results.
"[We looked at] recent graduates, and the proportion of them that don't own their own home, but have an investment property is 12%. Compare that to the general population, which is around 5%," he said.
CEO Ellie Comerford added Australia had the second-highest rate of younger homeowners, or potential first home buyers, "living with mum and dad."
Meanwhile, when asked about low doc and 90% to 100% LVR loans, Comerford said Genworth did not support them.
"What we saw, post GFC, was a move away from that. But it was largely driven by consumer sentiment," she said.
"At the end of the day, there's still an appetite for people to borrow above an LVR of 80%...we certainly don't support LVRs above the traditional range."


  • by Consumer Observer 27/09/2012 10:23:21 AM

    Here we go again. The very first line of the article talks about money, not about the types of services different market sectors require and how best to assist. Stop harping on your incomes and start talking professional services otherwise you will continue to earn the less than desirable reputation the sector has now. Professional brokers who are focussed on services can only be tarnished by this constant focus on income.

  • by Bill Jara (Loan Studio) 27/09/2012 3:07:11 PM

    I think 'Consumer Observer' is missing the point. The article is highlighting a growing market sector in which to add to your target market. In all circumstances, consumer-focused service should apply no matter which market you are targeting. I read no adverse or negative comments in the article, with respect to service. I found it to be informative and beneficial.

  • by Tony Thompson 27/09/2012 4:49:25 PM

    Hi Consumer Observer. I must agree and disagree with you. If a broker is solely looking at the income he/she will earn, and not what is best for the client, he/she, like in any other industry, will not survive. How does the old saying go "look after your clients and the money will take care of itself" which I am sure is correct for the majority of brokers. In saying this though, I must point out that Brokers are just like every other business out there. They have costs they have to meet each month. This article talks about a market segment that may be flourishing. It does not say anything about brokers grabbing for money and thinking of nothing else. Brokers like any other businesses need to continually look for new clients to stay viable. Can I ask you a question Consumer Observer, what industry do you work in, and are you self employed or do you work for a boss. If you work for a boss are you in the Public or Private Sector. This is important, because, someone who has never had a business of their own, would not understand the complexities of running a business. And whether you like it or not, Broking is still a business which has to make money.