January 2012 Newsletter

23 January 12 Administrator

 

Positive Start to 2012
 
After such a lack lustre 2011, it is refreshing and welcoming to start the year with such positive and encouraging news for the property market. As we know the Management Rights market over the last 2 years has experienced a easing of demand with lower than normal buyer activity and an over supply of property on the market. The reported news of the asian banks entering into our home loan market can only stimulate confidence and buyer interest in property, this combined with an unpredicable stock market can only improve the management rights long term outlook.
I feel confident from the recent enquiry level received from the Kapitol Brokers website(www.kapitolbrokers.com.au), we may return to the levels of transactions we experienced 3 to 4 years ago, sooner rather than later, only time will tell.
Below I have a transcript from a current news report on the asian financiers into the australian market, I trust you find this interesting reading. 'till next month, 
Monty Van Dyk

"JAPANESE banks could grab $100 billion of the Australian home loan market by undercutting local lenders that fail to pass on rate cuts.
At least three big banks, the $62 billion Mitsubishi UFJ Financial Group, $42 billion Sumitomo Mitsui Financial Group and $35 billion Mizuho Financial Group, are said to be considering an operation here. The arrival of the Asian giants would be good news for homeowners, because the big four banks have hinted that they would not pass on an expected 0.25 percentage point rate cut in early February, blaming rising costs in world debt markets spooked by eurozone woes. Finding funding is not a problem for Japanese lenders because they have mountains of inexpensive deposits courtesy of their country's savings culture. "The Japanese banks could take 5 to10 per cent market share away from the Australian banks," said Mark Bouris, head of non-bank lender Yellow Brick Road and a member of Treasurer Wayne Swan's Financial Sector Advisory Council. To take 10 per cent of the local mortgage market, the Japanese would need to write more than $100 billion worth of home loans in the $1.06 trillion sector, according to latest Australian Prudential Regulatory Authority data. A new report by Deloitte Access Economics, one of the nation's top teams of economic analysts, says the well-resourced Japanese banks are the most significant threat to Australia's finance giants after Europe's debt mess. "With the eurozone crisis also haunting the horizon and rumours of Japanese competition in mortgage markets, 2012 may be a tough year for the finance sector," its Business Outlook report, published today, warns. Our mortgage market "ticks all the boxes" for Japanese banks, said Mr Bouris, who - with Aussie Home Loan's John Symond - led the last significant challenge to the market share of Australia's the big banks. He said Australia offered stability, growth, diversity and solid returns with lending margins of 2.5 per cent."
Herald Sun, John Rolfe, Jan 23

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