MARCH 2013 ISSUE 10.05
$4.95 POST APPROVED PP255003/06906
+INSIDE + NEWS A look at what’s been making headlines P4
+ ANALYSIS CRYSTAL BALL
NAB’s John Flavell on where the economy is headed P12
+WORKSHOP UNTANGLING THE WEB
Building a dynamic website made simple P18
+ MARKET TALK
VIBHA COBURN: Making the path clear Mortgage broking is in need of new blood, and Citibank’s head of mortgages says the career path must be made clear
HELP FROM ABROAD
What Australia can learn from Sweden P20
+ AXE TO GRIND IN DEFENCE OF BROKERS
A NSW broker takes aim at the critics P22
T
he mortgage broking industry is ageing. With many seasoned brokers headed toward retirement, it’s crucial that talented new entrants are drawn to broking as a career. But Citibank’s head of mortgages Vibha Coburn has said that the industry must make the path clear, and provide options that appeal to a variety of would-be brokers. FULL STORY PAGE 14
+ CAUGHT ON CAMERA ON THE ROAD
NAB Broker takes its pitch cross-country P29
NEWS
brokernews.com.au
2
WHAT THEY SAID...
NUMBER CRUNCHING
51
%
38%
expect prices to rise in the coming 12 months
JOHN FLAVELL
of Australians expect house prices to rise in the coming six months
DID YOU KNOW?
“People are not confident to go out and leverage themselves” P13
FIXED RATES, VARIABLE DEMAND Fixed rates as a proportion of loan approvals: February
9.3 years
SA/NT
18.16
WA
23.05
15.74%
Source: RP Data
%
NSW
VIC
19.94%
P21
11.08%
Source: Mortgage Choice
TONY MACRAE
ON THE UP
Auction clearance rates improving
CITY
CLEARANCE SAME WEEK RATE WEEK LAST YEAR OF 9 MARCH
Sydney
72.7%
54.5%
Melbourne
61.2%
54.2%
Adelaide
58.8%
26.7%
Brisbane
44%
32.9%
Source: Australian Property Monitors
Source: Dun & Bradstreet
“More and more Chinese are shifting their wealth to Australia through property investment”
The average length of ownership for a house
QLD
%
VIVIAN WANG
“It's short-sighted of any lender to rely on either fixed or variable rates to run their business” P27
NEWS 4
brokernews.com.au brokernews.com.au EDITOR Adam Smith
Positive reporting not a negative
PUBLISHER Simon Kerslake COPY & FEATURES JOURNALIST Mackenzie McCarty
■ The impending positive credit reporting regime
will be a boon to consumers, says Experian Credit Services Australia managing director, Genevieve Juillard. Global credit reporting agency Experian has launched in Australia ahead of the positive credit reporting regime due in March 2014. While some industry figures have warned the system could lock borrowers out of credit, Juillard said consumers stand to benefit.” It provides empowerment in terms of the dialogue between the customer and the credit provider and provides the ability to ensure the consumer accesses the credit most appropriate to them.”
PRODUCTION EDITORS Carolin Wun, Moira Daniels
DID YOU KNOW?
50%
of the 816 distressed properties advertised for sale nationwide in 2012 were in Queensland.
FIXED RATE BORROWERS ‘VULNERABLE’ ■ Financial comparison site RateCity claims borrowers
only had a 30% chance of saving money by fixing for three years between 1990 and 2010 and were also likely to save more money by staying with average variable rates compared to average three-year fixed rates. RateCity spokesperson, Michelle Hutchison, said the study shows the ‘vulnerability’ borrowers face when locking in a fixed rate home loan. “Borrowers have to be particularly savvy and time it right to save money by fixing their mortgage, as it’s more likely that they will lose out by fixing.”
Tsunami of Diplomas
ART & PRODUCTION SENIOR DESIGNER Rebecca Downing DESIGNER Ginni Leonard SALES & MARKETING
■ The MFAA sorted through a
“tsunami” of broker qualifications following January’s Diploma deadline. MFAA CEO Phil Naylor said the association is now dealing with the influx of correspondence from brokers who completed the Diploma. “It’s gone really well. The deadline was 31 January, and as you can imagine, we’ve had a tsunami of emails from people providing evidence that they’ve obtained the qualifications.” The MFAA last year extended the deadline for the Diploma due to a “massive backlog” in processing last-minute enrolments. With the extension in place, Naylor said the majority of brokers had completed the qualification.
HOUSING PRICE TO INCOME RATIO 1960-2012
5
4
3
2
1
1960
1970
1980
ACCOUNT MANAGER Rajan Khatak MARKETING EXECUTIVE Anna Keane TRAFFIC MANAGER Abby Cayanan CORPORATE CHIEF EXECUTIVE OFFICER Mike Shipley MANAGING DIRECTOR Claire Preen CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR – BUSINESS MEDIA Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil Editorial enquiries Adam Smith tel: +61 2 8437 4792 adam.smith@keymedia.com.au Advertising sales Simon Kerslake tel: +61 2 8437 4786 simon.kerslake@keymedia.com.au Rajan Khatak tel: +61 2 8437 4772 rajan.khatak@keymedia.com.au Subscriptions tel: +61 2 8437 4731 fax: +61 2 9439 4599 subscriptions@keymedia.com.au Key Media keymedia.com.au Key Media Pty Ltd, Regional head office, Level 10, 1 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Singapore, Toronto, New Zealand brokernews.com.au Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Australian Broker magazine can accept no responsibility for loss. Australian Broker is the most-often read industry publication, according to independent research carried out by the EhrenbergBass Institute for Marketing Science at the University of South Australia in December 2008. The research also found that brokers rate Australian Broker as the best for both news content and feature articles, followed by sister publication MPA. Overall, on all categories, Australian Broker ranks top followed by MPA. The results were based on a sample of 405 respondents who were the subject of telephone interviews.
6
0
SALES MANAGER Simon Kerslake
2000
2010 Source: ABS, Stabledon
NEWS brokernews.com.au
6
Dreams of home ownership dying
THE STRANGER SIDE OF NEWS
■ The death knell has been
NICE DAY FOR A CHEAP WEDDING
■ Greece has had its fair share of troubles,
with the country’s economy dragging much of Europe with it into the vortex of recession. Austerity measures doled out by the government have hit a lot of Greek citizens hard, but perhaps few harder than would-be brides. Evidently, fewer Greeks are choosing to get married as the country’s financial crisis puts the squeeze on their traditionally lavish weddings. The number of couples choosing to get married fell from 40,000 in 2008 to 28,000 in 2011. Meanwhile, low-cost civil unions grew from 8,000 back in 2001 to 26,000 in 2011. Of course, My Small, Skinny Greek Civil Union doesn’t have quite the same ring to it.
MOPE-TOWN
■ Sydney and Melbourne may find themselves
perennially among the list of the world’s most expensive cities, but they can take comfort in the fact that they’ve escaped one dubious title. Forbes has named Detroit the most miserable city in the United States. With high crime, a dwindling population and an economy in shambles, Detroit unseated Miami – which held the title last year – as the most unpleasant city in America. In spite of a drop in violent crime, Detroit still maintains the highest rate in the country. The housing industry has been hit hard in the city as well, with home prices down 35% over the past three years.
FAST FACT
20
Hours per month that financiallystressed employees spend trying to solve their financial problems while at work
sounded for the Australian dream of home ownership following a troubling report on housing supply. Property Council of Australia has pointed to a report from the National Housing Supply Council as evidence that the “dream of buying a home is quickly fading” for many Australians. The NHSC report found a high level of pent-up demand for affordable housing, and said affordability pressures are pushing a “marked increase” in the number of young adults living in the parental home. “As time progresses, it now seems certain that the aggregate rate of home ownership will drop and the proportion renting will increase significantly,” the report said. Residential Development Council executive director Caryn Kakas said the report signalled a troubling shift. “The forecast increase in the proportion of households renting signifies the death of the great Australian dream of home ownership for many Australians,” Kakas said. The HIA echoed Kakas’ remarks, saying that housing would continue to become less affordable without government intervention. HIA chief executive
of industry policy and media Graham Wolfe argued that a dwindling supply of affordable housing would have flow-on social effects. “If future generations of Australians give up the dream of home ownership and this is not matched with a substantial increase in private or public investment in housing, rental costs will increase beyond the means of many Australians, placing enormous pressure on public housing waiting lists and the welfare system,” he said.
DID YOU KNOW? The proportion of household income chewed-up by mortgage interest payments is now 34% higher than in 1989, when mortgage rates peaked at 17%.
DUMPSTER DIVING ■ Bank branches are the worst offenders when it comes to leaving confidential client information vulnerable to theft, according to detective work carried out on the part of the National Association of Information Destruction (NAID-ANZ). An investigator hired by NAID-ANZ went through the contents of publicly accessible waste bins used by 80 Sydney businesses. Shockingly, 40% of bank branches were found to have dumped confidential documents into easily accessible and non-secure rubbish bins. On the other hand, none of the mortgage brokerages searched were found to have disposed of documents.
NEWS brokernews.com.au
8
Less-distressed Money does buy happiness assets ■ A Colliers International
■ A recent survey of 1,200 US
investors has found a direct link between increased income and reported happiness. Millionaire Corner, which conducted the research, says less than 25% of investors with a net worth of less than US$100,000 (the average Australian mortgage broker earns around US$62,000) rated their happiness as a nine or a 10, compared to 44% for millionaires with a net worth of US$5m or more. Millionaire Corner president, Catherine McBreen, says there’s a ‘real reluctance’ to associate money with happiness. “But our data indicates that the wealthy feel significantly more satisfied with the lives they lead.”
report has found that around 816 commercial distressed properties were advertised for sale across the country last year, up from the 777 on the market in 2011. However, this 5% rise was far less than the previous year’s 30% spike. Think Tank CEO, Jonathan Street, said his company has witnessed a ‘moderation’ in the incidence of distressed commercial property. “Conditions have continued to improve modestly … with demand certainly picking up, although we would characterise conditions as still very challenging for a large segment of property owners and businesses.”
CANADIAN BROKERS LOVE NON-BANKS New market share numbers suggest Canadian brokers are outdoing their Australian counterparts in the use of non-banks. “The mortgage bank segment continues to realise growth in the channel,” reads D+H’s latest quarterly report, obtained by MortgageBrokerNews.ca. “Funded volumes in the channel of this segment increased by 30.8% as at Q4 2012.” The latest fourth quarter numbers for the broker mortgage market show consolidated volumes increased 30.8% year over year for mortgage banks, and were up 8.1% for Q4 2012 over the same quarter in 2011. Proof that Canadian brokers consider non-banks to be true partners before the big banks is evidenced by the declining consolidated volumes for those brawnier institutions. Banks saw the quarter’s yearover-year numbers drop 21.9%, reflecting an overall drop for the year of 15.7%.
BROKER TAKES A TILT AT POLITICS
Top performing regional suburbs in terms of housing market growth (January)
Wandoan
NT
QLD
WA
27.48% growth Coolah
SA NSW Tom Price
Source: RP Data
CANADA
UK
GONE COUNTRY
Laura 25.67% 17.20% growth growth
WORLD NEWS
VIC
Beauty Point
Inverleigh
22.46 growth
28.37% growth
TAS
11.04% growth
While it’s easy to complain about the political climate and its effect on broker businesses, a UK mortgage broker has done something about it. A by-election brought about by an MP’s resignation on charges of perverting the course of justice saw mortgage broker Mike Thornton elected as MP for Eastleigh in the UK. Thornton told the BBC he would use his broker background in his new role in Parliament. “I have a business background, so my main focus will be to bring investment, and see how we can scale that up to the country,” he said.
OPINION 10
the property at market value for an agreed term of 12, 24 or 36 months. At the end of this time, ownership reverts to the original homeowner. He says the company makes its share through a success fee, which he says is the equivalent of normal real estate transaction fees.
Keeping equity from vanishing When mortgage holders are facing foreclosure, ARAP director Bernie Kelly says brokers have a solution to offer
F
or mortgage holders, the concept of building equity in their home is much like putting money in the bank. But in a distressed sale, ARAP director Bernie Kelly says this equity can vanish. In fact, Kelly says in the case of a distressed sale, the equity may as well not have existed in the first place. “In any purchase, you must have a willing seller and a willing buyer. Now, a nondistressed property has an average time on market of 130 days, and when it does sell, it sells at an average of a 15% discount. With a distressed property, you no longer have a willing seller or buyer. The average discount of a mortgagee
sale is 27%,” he says. Kelly says ARAP works by purchasing distressed properties before they’re foreclosed upon. And the purchase isn’t at a discount, he says. Instead, ARAP comes to an agreement with borrowers in trouble wherein it pays the market price for a home. “The client can then sell at their discretion and continue to live in the property without paying rent, or they can lease it and keep the proceeds. ARAP preserves equity by buying and holding,” Kelly says. For homeowners in arrears who are facing eviction and a mortgagee in possession sale, Kelly says ARAP arranges a valuation, and then purchases
THERE MUST BE A FUNDAMENTAL CHANGE TO SPENDING HABITS, OTHERWISE WHAT WE DO IS JUST BAND-AIDS –B ERNIE KELLY
“Our largest purchase was $25m, and our smallest was $380,000. None of them have gone bad.” Kelly touts the model as a solution brokers can offer clients in need. Brokers retain their clients, he says, as most will satisfy normal lending criteria at the end of the term. For their part, brokers are offered a referral fee, and are kept abreast of their client’s progress. This, Kelly says, is because ARAP agreements also include counselling by MyBudget. Brokers are updated on their client’s financial position to ensure they’re on track. “There must be a fundamental change to their spending habits, otherwise everything we do is just band-aids,” Kelly says. Ultimately, Kelly argued that ARAP is a solution that goes beyond a unique business model. He says its primary goal is to help people in need. “It’s not just about the asset. It’s about protecting the community and protecting families.”
brokernews.com.au
11
ANALYSIS 12
brokernews.com.au
Crystal ball NAB Broker’s John Flavell gives his take on where the economy is headed in 2013
T
he volatility of the global economy over the past few years has made pretty much anything difficult to forecast. With Europe still in a slump, the US slogging along through a slow recovery and China
unpredictable at best, predicting where the economy will go in 2013 can seem an impossible task. But NAB Broker’s John Flavell has looked at the signs, and gives his take on where we are and where we can expect to go.
FEAR FACTOR FALLING – FINANCIAL MARKET INDICATORS 60
100 95
50
90 40 85 30
80 75
20
70 10 65 0 06/06/2011
29/08/2011
21/11/2011
13/02/2012
Share markets in major developed countries Australian share market VIX index of market volatility LHS
07/05/2012
30/07/2012
22/10/2012
60 14/01/2013
WE’VE SEEN SOME MODEST UPLIFT IN THE INDEX OVERALL, BUT SINCE OCTOBER A BIT OF A BULL RUN. AS CONSUMERS GET MORE CONFIDENT THEY EXPECT LESS VOLATILITY AND WILL MOVE INTO EQUITIES, AND THAT’S WHAT WE’VE SEEN - J OHN FLAVELL
ANALYSIS 13
brokernews.com.au
APPETITE FOR REDUCTION: FALLING CREDIT DEMAND – KEY SYSTEM CREDIT AGGREGATES
HOUSING HOPES – CONSUMER HOUSE PRICE EXPECTATIONS Housing Business Personal
% 25 20 15
% 4.0 2.0 0.0
10
-2.0
5 0
-4.0
-5 -10
-6.0 Jul-12
Jul-11
Jul-10
Jul-09
Jul-08
Jul-07
Jul-06
-15
Q3'11 Australia
Q1'12 Victoria
Q3'12 NSW
Q1'13 Qld
Q3'13 SA/NT
Q1'14
Q3'14
WA
FLAVELL SAYS
FLAVELL SAYS
“The deleveraging across most sectors is continuing. [We expect] modest credit growth in housing, at or around 5%. Business and personal credit demand is expected to be negative.”
PUTTING IT ALL TOGETHER – NAB’S FORECASTS FOR 2013 CATEGORY GDP Unemployment CPI RBA cash rate
Q1'11
2012-13 2.3% 5.6% 2.8% 2.5%
2013-14 2.8% 5.7% 2.9% 2.25%
“There are still markets like WA where there’s some optimism, but overall we see the property market moving sideways at best. The big one is the confidence piece. People are not confident to go out and leverage themselves.”
FLAVELL SAYS
“There is a lot of volatility globally, and that’s not going to change anytime soon. [We expect a] domestic downturn as we work out the shift from mining to somewhere else. Property prices sideways, credit growth slow and cash rate down. That’s the kind of environment we’re setting our sails for in the next period.”
NEWS 14
brokernews.com.au
CONTINUED FROM PAGE 1
Vibha Coburn: Making the path clear
C
oburn has plenty of experience backing up her claims. She’s seen the mortgage broking industry mature firsthand. After a stint with Citibank in Singapore, Coburn came back to the bank’s Australian business in March 2011. Before she left Australia for her role in Asia, Coburn said mortgage broking was in its infancy. “I came back into the market after a few years overseas. When I left [Australia], mortgage broking was just starting off, Aussie Home Loans was just starting off and you had the WA crew building mortgage broking as a business,” she said. In her absence, though, Coburn said broking had grown into a profession. But as the industry aged and matured, the paths for people to enter were fewer. Coburn said broking used to be a career people found themselves in after years in other areas of financial services. “People just fell into it. They did banking for 20, maybe 25 years, and then they went into mortgage broking. That was the genesis of it,” Coburn said. “I think if you sat most brokers down and said, ‘When you started out, is this where you thought you’d be in 10 years?’ most would say that it just happened.” But it’s not enough anymore, Coburn suggested, to expect people to “fall into” mortgage broking, or for career progression to “just happen”. With barriers to entry higher than ever, and heightened education requirements, Coburn said the industry needs to find new ways to lure talent. “That’s the challenge: how do we build it up and make it into an industry that people don’t just fall into, but want to be a part of?”
DID YOU KNOW? Citi recently simplified its pricing structure following broker feedback
MAKING THE PATH CLEAR
“It needs to be a career path,” Coburn said. “No one ever tells you the path. There needs to be two or three models for entry, and then you pick the model that best fits your circumstances.” A variety of models for career progression and entry into the field could mean that a wider variety of people are drawn to mortgage broking as a profession, Coburn said. “There are people who are more entrepreneurial than others, but then there are people who want to go to a bank, work in a branch and move up the ladder. That appeals to some people.” For these people, Coburn said the industry needs to come up with a clear path of career progression. Rather than lose talented potential
HOW DO WE BUILD IT UP AND MAKE IT INTO AN INDUSTRY THAT PEOPLE DON’T JUST FALL INTO, BUT WANT TO BE A PART OF?
NEWS 15
brokernews.com.au
brokers to bank branches, Coburn said broking could provide a similar career path with even more attractive benefits. “We need to be able to say that there’s a similar path and it will get you to owning your business and making that money faster. People need to be shown that vision,” she said. “To have that career pathing, that’s part of making it a profession.” And part of making it a profession, Coburn indicated, is making the industry attractive to people first entering the workforce. At the moment, for students leaving university, perhaps with a finance or business degree, mortgage broking can be a tough sell. “You spend three years, you’re paying HECS fees and for the first year you don’t earn anything.” This is where the industry may have to begin to think in new ways, Coburn said. For brokerages looking to bring in new talent, one of these new strategies might be re-thinking the traditional commission-only model of mortgage broking. “I know some people are putting new entrants on a salary. They’re saying, ‘Come in and we’ll put you on a salary and come to some agreement later’, so what you earn in the first two years is maybe
WE NEED TO BE ABLE TO SAY THAT THERE’S A SIMILAR PATH AND IT WILL GET YOU TO OWNING YOUR BUSINESS AND MAKING THAT MONEY FASTER. PEOPLE NEED TO BE SHOWN THAT VISION
paid back with some kind of revenue sharing,” Coburn said. Coburn is not entirely certain what the model will look like, or how a standardised career progression in mortgage broking will play out, but there’s one thing of which she is certain: the industry needs to come together to provide a path for people looking to broking as a career. “If people put their mind to it, they can do it. But it needs to be industry-wide. There are pockets doing that, but it’s not industry-wide. There needs to be a groundswell.”
WORKSHOP 18
brokernews.com.au
UNTANGLING Building your own website can seem daunting, but it’s simpler – and more important – than you may think
HOW SHOULD I DESIGN MY WEBSITE? Steve O’Farrell of The Royals shares the best ways to optimise your website for results: Contact information should be clear and easy to find
I
t’s not exactly news that the internet is vital to make your business visible, but many brokers still don’t have their own website. The statistics are overwhelming: relevance in the digital marketplace has a real world impact on small businesses. So for brokers who haven’t made the leap, it’s crucial to develop an internet presence. Digital marketing guru Steve O’Farrell, director of The Royals, recently shared some tips for brokers looking to make an impact on the web.
Ensure your domain name is as close to your brand as possible Don’t include jargon that could alienate clients Provide simple navigation Provide value in return for people giving you their information (ie, white papers or research)
DIGITAL DOMINANCE
AUSSIE BROKERS FALLING BEHIND DID YOU KNOW?
Internet via mobile 04:12
Other 30m
Intern et
60%
m 54 s 1 2
02
Studies show Australians spend more time per week on the internet than any other form of media
s
Internet via tablet 05:24
60% of all consumer journeys that end in a sale or lead start with an internet search Source: WPP
Recent research shows brokers in Australia are falling behind US SMEs in their use of the internet to market their business
Source: NAB Broker
HOW DO I MAKE SURE I SHOW UP IN SEARCH RESULTS? O’Farrell gives tips on how to stand out from the internet clutter: Submit your site to all major search engines Share your new site through your regular social media channels
TV
15:30
Source: Nielsen
Radio
09:48
Newspapers
03:30
Magazines
02:12
Integrate social functionality. In other words, include buttons so people can share your site on Facebook, Twitter, LinkedIn and other social networking sites Engage in community building by commenting on forums and blogs while linking back to your own site
WORKSHOP 19
brokernews.com.au
HOW DO I GET STARTED? O’Farrell presents four solutions to build your site:
MYOB ATLAS • MYOB is specifically targeted at SMEs and first-time website owners • It contains straightforward templates • MYOB is mobile optimised so your site will work on smartphones • It includes basic social media integration
• Sensis markets itself as a ‘turnkey’ solution which includes stock images and simple text for a threeto four-page site
SENSIS SITESMART • Sensis will source content from your pre-existing Yellow Pages business listing • It provides a domain name and email address
GOOGLE SITES • Google Sites integrates with your pre-existing Google account • SEO is built in • Simple drag-and-drop site construction
INFO FEED Australians prefer to get their info online, and increasingly trust the info they find there
DID YOU KNOW?
WORDPRESS.ORG • Wordpress is used by 60 million sites, including LinkedIn and TED • It provides flexibility in design and function • It has thousands of plug-ins and enhancements you can add to your site • You can find third party paid templates that allow you to set up a unique and functional site quickly
55%
Companies who blog produce 55% more website visitors than those who don’t Source: Hubspot
51%
Internet is best source for opinions
34%
52%
Internet is most trusted information source
Internet is favourite time filler
52%
Internet is preferred information source
Source: Nielsen
33%
Internet is favourite way to spend time while commuting or travelling
MARKET TALK 20
brokernews.com.au
Help from abroad? Why Australian officials should look to Sweden for ideas on fixing our troubled housing market
A
ustralia may have avoided the worst of the GFC and its impacts on the housing market, but economist Leith van Onselen says there’s one country we should be taking a closer look at when considering housing issues here at home: Sweden. “Sweden’s housing market shares a lot of similarities with Australia after its financial system was deregulated in the mid-1980s, which led to a house price boom and then correction as the Swedish economy entered recession in the early-1990s,” says van Onselen. While Australia’s banking system was almost ‘brought to its knees’ via widespread corporate losses, Sweden experienced a banking crisis in the early 1990s after house prices crashed, as well as a bailout of the country’s banks by the government. As a result, van Onselen says Sweden – like Australia – experienced a large house price boom that ran from 1996 to 2010, with prices rising by
Multi-generational mortgages Amortisation rates in Sweden are much longer than in Australia:
100 years for houses 200 years for units
SWEDISH AUTHORITIES ARE TIRING OF THE HOUSING SITUATION, AND ARE LOOKING TO DAMPEN DEMAND BY STRENGTHENING SAFEGUARDS ON ‘EXCESSIVE’ MORTGAGE LENDING
about 165% in real terms. Swedish authorities also implemented a range of measures to stimulate the housing market during the GFC, including tax breaks in 2008 for homeowners wishing to renovate newly purchased properties. “Like Australia’s, the Swedish tax system encourages house purchase over other investment options. In general, owneroccupiers can deduct 30% of mortgage interest from their marginal rate of tax.” In the years leading up to the GFC, Swedish loans were typically granted at up to 95% of property value – and 100%-plus loans were also available. “Moreover, loan amortisation periods are particularly long in Sweden – at 100 years for houses and 200 years for tenant-owner apartments. Like with Australian banks, this huge loan growth was funded by an increasingly large reliance on wholesale funding.” The Swedish planning system is also highly restrictive, resulting in home building rates near the bottom of European countries. These similarities have, according to the van Onselen, put both Sweden and Australia close to the top of the list of the most indebted households in the world. But here, he says, is where a crucial difference between the two countries emerges. “Swedish authorities are tiring of the housing situation, and are looking to dampen demand by strengthening safeguards on
FAST FACT
85%
Swedish LVRs are capped at 85%
excessive mortgage lending. In October 2010, Sweden’s financial regulator capped mortgage LVRs at 85%, a move that helped slow annual mortgage growth from more than 10% between 2004 and 2008, to 4.5% in December, 2012.” The country’s financial regulators are now seeking to impose further LVR limits, as well as increase capital adequacy requirements on lenders. Van Onselen says Australia’s yet to even debate the merits of macroprudential tools beyond a few ‘dismissive utterances’ from the RBA. Yet, he argues, these tools are enabling Swedish authorities to target areas in the economy that need to grow, without triggering further destabilising asset price growth. “Sweden has a weakening economy, in part a result of an overvalued currency. Nonetheless, the Riksbank, Sweden’s central bank, has slashed interest rates by 75 basis points to 1% in the past year and is successfully forcing down the Krona to boost exportexposed industries.” There is a lesson in this for Australians, says van Onselen. “The balance of using macroprudential tools to manage credit issuance along with falling interest rates could also work for Australia, and could materially lower the dollar without increasing the risk of housing assets inflating or deflating too rapidly.” “Australian authorities,” says van Onselen, “need to take a look at Sweden.”
MARKET TALK 21
brokernews.com.au
THE GREAT CULTURE WALL:
How and why to target Chinese borrowers in Australia? Chinese investors are a growing market segment in Australia, and the time is ripe for you to tap into this trend
R
ecently, property website Juwai.com and real estate marketing company Previsite signed an exclusive partnership, signifying something many in the mortgage broking industry are coming to realise: Chinese buyers are playing a major part in Australia’s housing market. VMoney director Vivian Wang, whose brokerage firm includes a number of Chinese clients, says there are several reasons for the growing trend. “I think real estate has always remained as the favourite investment for Chinese investors, the concept of wealth creation through property investment has been passed through generations; this applies to those Chinese who are residing in Australia and also overseas investors.” In recent years, due to the impact of property-purchasing limitations and other control measures in China, Wang says more and more Chinese nationals are considering investing in real estate overseas. “With Australia’s economy appearing relatively strong and
stable on the global stage and also possible consideration of future migration, education and wealth diversification, more and more Chinese are shifting their wealth to Australia through property investment. As a mortgage broker, this market has provided tremendous opportunities for us.” Wang says she thinks targeting Chinese investors could pose a unique and rewarding opportunity for many mortgage brokers working in Australia – but there’s also a fair bit of competition. She says brokers wanting to appeal to this market niche must take the time to understand cultural differences and nuance. “Besides learning the language, I think it is quite important to understand Chinese culture. “You really need to be patient dealing with Chinese clients; quite often, western people feel frustrated in figuring out what Chinese clients really think from the ‘not so emotional responses’, especially in the initial stage of dealing with them. You have to gain their respect and trust
VIVIAN WANG
before you try to win their business.” Wang stresses that, in general, Chinese people are scrupulous and intent on getting things right. “The Chinese are diligent people, not just in their work or business, but also when it comes to getting investment or finance advice. They also like to do their homework and research. So always present the best possible offer or solution – because they will always compare…” However, for brokers that do manage to build trust and a positive working relationship with Chinese clients, the potential for further business can grow quickly. “Once they open up to you, they will introduce their family and friends to you as well.”
BROKERS SEE LIFE IN REGIONAL MARKETS Five states experienced housing market growth in January, including NSW, Queensland, Victoria, South Australia and Tasmania, according to market research group Residex. The Northern Territory and Western Australia – outside of Perth, on the other hand, were the worst regional performers for the month, with both regions recording negative growth in the house, land and unit markets. But long-time Bunbury broker, Theo Krinos, says his office’s experience has been quite the opposite. While he notes that Bunbury is one of the larger cities in Western Australia and therefore possibly more similar to Perth than other, less populated areas, he says January was actually a bumper month. “We’ve had two tremendous months in December and January. The only difference is that the loan sizes are better than they were six to eight months ago – and we’re seeing a lot more confidence in the first homebuyer market and a few more investors.” In fact, Krinos estimates that January was one of the office’s ‘top five months ever’, after more than 20 years in business. “I think finally people have realised that interest rates are good, the price of homes is pretty well to the bottom of the market, the confidence is growing – and they’re not getting the bad vibes from Europe anymore, either. The clearing rates in Melbourne and Sydney last weekend were about 70% sold, so I think that reflects things across the board.”
AXE TO GRIND
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‘I Confiteri’ –
A mortgage broker’s response to detractors News Ltd reporter Jessica Irvine has continued to draw ire from brokers for her comments on the industry. NSW broker Narayana Harish of Clever Call Financial Services offers a point-by-point refutation
T
here has been a lot of heat and noise over articles written by News Ltd Journalist Jessica Irvine, and others perhaps, over the last few months. A lot of us have reacted to the various facts, observations and opinions. I have tried to look at both action and reaction in an objective manner.
ARE WE PROACTIVE WHEN WE COME ACROSS SUB-PAR PRACTICES WITHIN OUR INDUSTRY?
SOME OF THE ASSERTIONS MADE:
• That banks have consolidated and grown more powerful since the GFC • That the big four have taken over many of the smaller banks, aggregators, and financial services businesses • That banks aim to offer, and profit from, multiple products to their clients • That mortgage brokers may not offer the ‘best deal’ to their clients • That mortgage brokers are not ‘adequately’ disclosing commissions and remuneration from lenders • That mortgage brokers push ‘products’ to clients based on remuneration, rather than suitability to clients
Let us look at some of the points raised above }} Banks have consolidated and grown more powerful since GFC As participants in the sector, we finance professionals have to deal with market players and conditions as they are today, while doing our best to voice our thoughts and opinions, both individually and via relevant industry bodies. As consumers of financial products ourselves, we have to make suitable choices and informed decisions in our best interests. Every citizen, as consumer and participant in our society, has the right, and obligation, to do likewise.
We live in a free market society and like the overall economy and market in general, change, mergers, acquisitions, consolidation, etc – within a sound regulatory framework – is part of how our economy works. And the banking and financial services sector is no different.
}} The ‘big four’ have taken over smaller banks, aggregators, and financial services businesses }} Banks aim to offer, and profit from, multiple products to their clients
• Do most, if not all, businesses aspire to a bigger and bigger share of customers? • Do most, if not all, businesses aspire to a bigger and bigger ‘market’ share and faster growth? • Do most, if not all, businesses aspire to higher profitability per client? • Do most, if not all, businesses aspire to sell multiple products per client? You would say yes to all the above.
So does the banking and financial services sector. Are consumers free to choose who they want to deal with, buy from, bank with, borrow from, and make decisions solely based on their choice and needs? You would think so. They offer us multiple products. We may choose to take it, just as some of us may choose to pick up milk and bread from the petrol station, knowing that we may be paying more for it.
}} The point is, do banks, or for that matter, the corner petrol station or supermarket, force us to do anything? You would say no. As consumers of financial products, we all have to make suitable choices and informed decisions in our best interests.
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}} Mortgage brokers may not offer the ‘best deal’ to their clients }} Mortgage brokers are not ‘adequately’ disclosing commissions and remuneration from lenders }} Mortgage brokers push ‘products’ to clients based on remuneration, rather than suitability
• Does a finance professional listen to and discuss a client’s current situation, wants, future needs and goals? Yes we do. • Do we help clients analyse their situation, wants and needs, and provide practical solutions? Yes we do. • Do we discuss with and assist clients make appropriate decisions, based on offered solutions? Yes, we do. • Do we assist clients with structuring their borrowings and loans to suit their needs? Yes, we do.
• Do we then, and only then, discuss possible lenders/product providers who may be suitable? Yes, only then. • Do we then, and only then, discuss particular products and features which may be suitable? Yes, only then.
• Does any reasonable client expect any broker to have access to all lenders and all their products? Only as much as they expect, in their local Coles or Woolworths, to have access to all brands of all bread makers in Australia. In short, obviously not. • Do we have access to more than one bank/provider’s products? Yes we do; in most cases more than 20 product providers and dozens of products.
• Can a bank employee even discuss, let alone offer, another bank’s product or service, even if they know or believe there are alternatives? You wouldn’t think so. • Do we disclose, in writing, in detail, our remuneration to our clients? Yes, we do. Would a bank employee do the same? You wouldn’t think so.
Now, a bit of introspection: }} Why do some journalists/ commentators/regulators write negatively about us?
A finance professional, as it stands today, practises within the confines of a regulatory framework, and is bound, obligated to and guided by relevant industry bodies and associations, aggregators, product providers, etc. In most cases we would not survive, let alone thrive, if we, and our employees/ associates, were not doing the right thing by our clients.
}} Do we discuss, explain, disclose, and provide in writing, any perceived conflict of interest, to our clients? Yes, we do.
• Do all finance professionals take care to structure their employment/business optimally? • Do we all work/associate with appropriate employers/ aggregators/mortgage managers? • Should we take care to make sure our chosen employers/ aggregators/mortgage managers give us access to relevant systems, products, information, training, etc?
• Do we actively partake, participate in, learn and practise? • Do we conduct ourselves professionally, ethically, in the best interest of our clients, at all times? • Do we do all the things listed above, in our client’s interest? Obviously not all of us, all the time. Yes, there always will be some bad apples.
We are not in Utopia yet, but here is the crucial question: Are we proactive when we come across sub-par practices within our industry? }} Would such articles be fewer if we did the clean-up ourselves, before it is exposed and sensationalised?
FINANCIAL SERVICES 24
brokernews.com.au
Poor employee health bad for business
I
f you’re a broker with employees, you may want to pay attention to their health. Poor employee health can affect a business’ viability as well as posing risks to those who work within and with it. For these reasons, health risk assessments can bring benefits to businesses of any kind. The benefits that health risk assessments can bring to businesses are often overlooked. “Whilst there are numerous benefits for the individual, the benefits to an organisation can be poorly understood and as such, easily negated,” says Mark Cassidy, general manager of risk and innovation at 2CRisk says. Health risk assessments can enable business operators to examine the causes of costly absenteeism, as well as health and compensation claims. They can help businesses to develop effective health risk management strategies – to ensure employees’
health is working for them, rather than against them. Personal health risk assessments can benefit employers – as well as employees – by: helping employers measure and monitor the health of their workforce allowing employers to evaluate changes in health behaviour and risk
providing employers with information on productivity providing employers with an indication of employees’ readiness for change alerting employees to the many benefits of health management enabling employees to better monitor their own health
POOR EMPLOYEE HEALTH CAN AFFECT A BUSINESS’ VIABILITY AS WELL AS POSING RISKS TO THOSE WHO WORK WITHIN IT
HR PROS TAPPING ADVISERS FOR HELP
QBE denies job-axing reports QBE has denied reports that it is to axe 150 Sydney jobs in a matter of months. Reports claiming that Sydney-based staff will be out of work within six months surfaced after QBE stated 700 roles would be off-shored to the Philippines. The move will affect Australia, Europe and North America, and the claims lodgment, management, and reinsurance administration areas. It is also likely to impact insurance brokers. However, a QBE Australia spokesperson stressed that there were no plans in place to cull 150 jobs. “These reports are incorrect,” she said. “We are currently working through the early stages of our plans and are focused on minimising the impact on jobs in Australia through a combination of natural staff turnover and staff redeployment.”
A DID YOU KNOW?
20 hrs Financially stressed employees spend 20 hours/ month sorting out personal financial problems
larming statistics have informed businesses that financial stress causes a huge loss in productivity, and HR professionals could be responsible for financial literacy training for staff. The CIPD/Benefex Reward Management Survey 2012 recently revealed that financially stressed employees spend 20 hours a month of work time trying to solve their financial problems. What’s more, the study also found that more than eight in 10 organisations offer no financial education to help their employees. While more than a third of companies plan to increase their spend on employee benefits this year, just 18% invest in communicating the full value of their total remuneration package. “If employers apply [a] duty of care to their entire reward strategy, by improving employee understanding and awareness around the value of the entire breadth of benefits they offer, employers are likely to reap the benefits in terms of recruitment, retention, engagement and productivity,” Charles Cotton, from the UK-based Chartered Institute of Personnel and Development (CIPD) said. It is therefore beginning to be seen as paramount to regularly communicate the full range of rewards and benefits available over and above basic pay and holiday entitlement, and to provide financial literacy training as a standard benefit. With the roll-out of increases to employer superannuation contributions (to reach 12% by 2019), superannuation is an integral aspect of financial literacy which many employees are lacking.
FORUM 26
brokernews.com.au
‘TSUNAMI’ of Diplomas come through as brokers succeed in up-skilling
The MFAA said it was sorting through a “tsunami” of broker qualifications following the Diploma deadline. The very mention of the controversial qualification got brokers talking
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ith the 31 January deadline for the Diploma having come and gone, MFAA CEO Phil Naylor said the vast majority of the industry had succeeded in up-skilling. But the comments got brokers debating the value of the qualification. JB said the Diploma was one of the reasons he left the association. “Forcing brokers to get a Diploma regardless of time in the industry or prior experience was a big mistake by the MFAA. Brokers have enough compliance, memberships and insurance to worry about without being forced into the time and expense of a Diploma that nobody requires or cares about. I left the MFAA and joined the FBAA, and it was painless.” Dean was unhappy with the requirement as well, and said the Diploma had been of little value to him. “What a total waste of time and money for experienced brokers. I learnt nothing, not a single thing. All this to satisfy some ridiculous fantasy of MFAA. It just reflects their remoteness from ground level brokers.” But Qualified defended the Diploma, and said more education was always better than less.
“Pity so many brokers have a problem with being educated and gaining more formal knowledge about the industry that they work in. I think having more qualifications, whether or not your clients ask to see them, can never be a bad thing. “Australia has one of the highest education standards in the world, and I think it’s great that all industries are striving to keep that the case.”
PITY SO MANY BROKERS HAVE A PROBLEM WITH BEING EDUCATED AND GAINING MORE FORMAL KNOWLEDGE
BANK BASHING
MFAA, FBAA COME TOGETHER
The MFAA and FBAA are set to take part in a roundtable held by the Independent Finance Brokers Forum, and IFBF chair Stephen Dinte said it would give them the opportunity to spruik the behind-the-scenes work they do that brokers may not fully appreciate. NoTimeLikeTheFuture agreed.
Each issue, Australian Broker will publish the best online comment from the previous fortnight – along with your other feedback. So get online, and get participating! BROKERNEWS. COM.AU
We are benefiting now from the work of the associations and we just don’t realise it. It’s an insurance policy to have infrastructure in place like the MFAA, which will tackle future problems and fight for sensible, workable policy. Anyone who drops out will in effect free-ride on the rest of us. NoTimeLikeTheFuture on 5/03/2013 at 10:44AM
MEDIA MISTREATMENT?
While former RBA governor Bernie Fraser said banks were favouring their shareholders at the expense of customers, economist Leith van Onselen argued that major banks weren’t necessarily ‘screwing’ borrowers by not making out-of-cycle cuts (Major banks not ‘screwing’ borrowers, 4/03/2013). Brokers took Bernie’s side.
Following disastrous media coverage of the company’s financial results, Firstfolio chair Eric Dodd said the company was in good shape in spite of what the press would have people believe (Firstfolio aims to ‘set the record straight’ on ‘clean-up job’, 1/03/2013). Some brokers just weren’t convinced.
Jerry Gibb on 4/03/2013 2:01PM Good on Bernie. Banks have always screwed their clients and will continue to use any reason to protect profits over giving the consumer the full benefits of RBA cuts.
Broker Needs on 1/03/2013 2:07PM FFF is too small to manage all the brands they have. If they would listen to their brokers and consider consolidating all their brands under one strong brand, they would reduce costs across the group.
Edgar on 4/03/2013 5:26PM What on earth is van Onselen smoking? That sort of circular logic is quite frankly a load of manure. Unfortunately, he’s left a large clarifier off his claim that if the banks had passed on the full reduction the RBA wouldn’t have dropped the rates as much and borrowers would still be paying the same rate [but the banks wouldn’t be able to make as big a profit]. Sorry son, but most Aussies could live with that rather than the feeling they’re being screwed.
Positive Broker on 1/03/2013 2:02PM Sorry to say where there is smoke there is usually fire. The writing may be on the wall. This is not good for the industry.
What do you think? Leave your comments at brokernews.com.au
ONE YEAR ON 27
brokernews.com.au
ONE YEAR ON What a difference a year makes … or not. Australian Broker reflects on the punditry, news and influential trends that made headlines 12 months ago Australian Broker Issue 9.05
Practising certificate impost rejected The MFAA and Commonwealth Bank last year began beating the drum about a “Certified Practising Certificate” for brokers. In essence, the certificate would ensure technical competence in putting deals together. While Mortgage Choice had previously been publicly supportive of additional educational requirements brought in by the MFAA, the company’s CEO, Mike Russell, drew the line at the mooted qualification.
What’s happened since?
While Commonwealth Bank’s Kathy Cummings has remained vocal about the desire to see the practising certificate introduced, there seems to have been no further movement on bringing the idea to fruition. At least not publicly. For the time being, the MFAA has said it is still sorting through a flood of broker qualifications following the Diploma deadline.
ASIC confuses: calls brokers ‘independent’ ASIC caused some confusion last year by asking brokers applying for an ACL if they provide “independent” credit advice. The problem arose from the fact that the NCCP restricts brokers from using the term in their advertising to consumers. ASIC said it had yet to see any signs of confusion over the discrepancy.
What’s happened since?
ASIC is now enforcing the NCCP’s ban on advertising independent advice. While the MFAA lobbied for an extension for brokers who used the word in their business name, ASIC said it would communicate with these brokers on a case-bycase basis. At least one broker, James Pibworth of Iconic Home Loans, said he had to go to great expense to change his branding off the back of the ban.
Fixed rates attracting attention TONY MACRAE
As banks slash fixed rates, Westpac’s Tony MacRae says brokers are taking notice
B
anks are slashing fixed rates in a bid to kick-start the sluggish credit market and Westpac’s Tony MacRae told Broker TV the bank’s recently announced two-year fixed rate of 4.99% has attracted lots of attention. “Our BDMs have been inundated with enquiries from mortgage brokers and our local mortgage broker squads have been out there proactively phoning and emailing their broker relationships to let them know about the… offer. “In addition, we’ve recently announced that we’re also dropping our three-year rate to 5.29% under our Premium Advantage package.” MacRae says being competitive in the market doesn’t begin and end with low-cost loans, however. “I think it’s short-sighted for any lender to rely on either fixed or variable rates to run their business. As they say: Win on rate, lose on rate.” MacRae says mortgage brokers want great service as well as good products. “That can come in the form of exceptional relationships, great turn-around time, tools, technology, all of those sorts of things. We believe that what differentiates us – and will differentiate brokers in the marketplace – is being able to add value to their business.” But it’s not just banks that have a role to play in boosting activity. MacRae says brokers are a critical part of the equation. “I think it’s really about brokers finding their niche and probably that’s around service, because they can differentiate themselves, really, in the service department.
PEOPLE
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A sporting chance New AMB broker Karen Montero is connecting with her community through sport
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fter working in banking for several years, Karen Montero decided she needed more balance between her work and her home life. But her trek away from financial services didn’t last long. “The day I drove out of the carpark I got a call asking me to look at doing broking,” she said. Montero signed on with Australian Mortgage Brokers, and spent six months going through her accreditation process as she said she didn’t want to “jump right in”. But Montero has jumped into her local community, increasing
THIS TIME NEXT YEAR I WANT TO BE MORE ESTABLISHED IN THE COMMUNITY
her business’ visibility through a channel with which she’s intimately familiar: footy. “Both of my sons play, and my husband is coaching the under14s,” she said. Montero also serves as junior chairperson of her local club, and for every loan she settles, donates $100 to the club. She said this kind of involvement has given her the opportunity to raise the profile of her business. “I have a sign up at my club directly underneath the canteen, because I’m always working the canteen on game day,” Montero said. With success in getting her business name out to the community through her participation in the club, Montero said she’s looking to expand her reach. She’s now sponsoring a second club, and said it provides even more opportunity to make her business known. “The new club we’re sponsoring will have a sign on the pitch, and we’ll also be on the scoreboard.”
In addition to her sport involvement, Montero said she’s eyeing other creative ways to engage with her neighbours. “Our local Neighbourhood Watch pamphlet goes out four to five times a year, and we’ve been able to put an ad in that,” she said. And as a new broker, Montero said she had her sights firmly set on growing the influence of her business, and continuing to develop as a professional. “This time next year I want to be more established in the community. I also want to get my head around the bank policies and upskill my product knowledge. I’m a great believer that the more you know about product, the easier it is.”
MOVERS & SHAKERS ■ NEW BLOOD AT BALLAST
Ballast has brought onboard Paul Kalajzich as national manager of finance. Kalajzich has previously served in a variety of third-party focused roles, with a recent stint as WA state manager for the intermediary division of St.George, as well as a previous role as NSW/ACT state manager for NAB Broker.
■ ING DIRECT SEES CFO SHUFFLE
ING DIRECT has imported its new CFO from Romania following the retirement of 18-year veteran Glenn Baker. Baker, whom the lender says played a major role in the development of the Australian business and was instrumental in helping the lender obtain its banking licence in 1994, was officially replaced on March 1 by Sander Aardoom. Aardoom held the CFO and Deputy CEO roles at ING’s Romanian offices
CAUGHT ON CAMERA 29
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IN FOCUS
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AB Broker recently took its show on the road, holding broker events across the country. General manager of distribution John Flavell updated attendees on the economy and the bank’s progress, while Steve O’Farrell of The Royals shared digital marketing tips
View more photos from this event at brokernews.com.au/industry-events
INSIDER
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THE FINER POINTS OF FENG SHUI
Quite possibly the worst broker deal,
EVER
I
magine the commission on this home loan: the local council in Stoke, Staffordshire in the UK is selling homes for £1 (A$1.49), in a desperate bid to reinvigorate the local property market. With the average upfront commission rate in Australia standing at 0.66%, that would leave any hypothetical broker involved with a heady sum of A$0.0098 upfront, plus a monthly trail of around A$0.0026. The UK’s Daily Mail newspaper reports that, as well as a boarded-up building, the owner will receive a £30,000 (A$44,574) low interest loan to renovate the property as part of the £3m scheme funded by the council and the government. Unfortunately, the buildings in question reside in one of the area’s most crime-riddled neighbourhoods – and any potential owner must renovate the house and live in it for five years before they’re allowed to sell up. The properties each have two to three bedrooms, a backyard, and are in a variety of conditions that range from ‘liveable’ to ‘desperately needing refurbishment’. Council members reportedly feel the abandoned buildings are dragging down living standards and raising crime rates by attracting arsonists, squatters
AT THE MOMENT, THERE IS VANDALISM, WITH PEOPLE USING THE BACKYARDS OF EMPTY HOUSES FOR FLY-TIPPING [ILLEGAL WASTE DUMPING] and burglars, as well as devaluing nearby properties. Abandoned houses are apparently a major problem in the area, with some 4,000 buildings left empty as of January 2011. Local resident, John Bannister, tells the Daily Mail that the situation in Stokes is dire. “At the moment, there is vandalism, with people using the backyards of empty houses for fly-tipping [illegal waste dumping], and all kinds of problems.” Back in 2001, Wambo Shire Council in Queensland offered 48 blocks of land in Jandowae, 260km west of Brisbane, for $1 a pop. The town of about 1,000 residents was in the doldrums as people were leaving the area, their houses were unoccupied and shops were closing. After the sale, the population rose and business picked up. By 2005, the council declared the stunt a ‘huge success’.
Mortgage brokers are, in general, a stressed-out and over-worked bunch, so we’ve taken a look at how Feng Shui principles – when used in an office environment – can help you feel calmer, more productive and emotionally better prepared to serve your clients. Feng Shui itself originated in China thousands of years ago and some estimates have it cropping up as early as 4000 BC. The art form was banned during China’s 1960s Cultural Revolution, but has since spread in popularity throughout the Eastern and Western worlds. While some understandings of Feng Shui can seem a little superstitious, there’s ample evidence to suggest that, at the very least, de-cluttering a work space and incorporating natural light and airflow (two key Feng Shui principles) leads to a more stimulating office environment. And hey – if it’s good enough for Donald Trump (he reportedly hired a Feng Shui master several years ago after losing Asian clients due to his properties’ bad vibes) – it’s good enough for us. Sydney-based Feng Shui consultant and real estate agent, Elizabeth Wiggins, says Feng Shui literally means ‘wind and water’ and focuses on the flow of ‘Qi’, or ‘life’s energy’. “By applying Feng Shui to your surroundings, you find that you have opportunities to improve every aspect of your life. When we use Feng Shui we work to enhance the Sheng (good) Qi and deflect or neutralise the Sha (negative) Qi.” Wiggins says modern Feng Shui experts often incorporate ‘building biology’, which looks at the health hazards that affect our everyday life – things like electromagnetic fields, mould, etc. However, on a more basic level, Wiggins has offered Australian Broker readers seven things they can do – many of them in just a few minutes – to enhance their work environments: 1. It is essential that you have a solid wall behind you as it will provide more backing for your ideas and lends authority to your presence. 2. You should be able to see who is coming through the door. This gives you a sense of being in control of your work. 3. You should also see the whole room from your desk. This will ensure you have mastery over all you do, you will think more clearly, your judgment will be sound, and you will be respected. 4. Clear clutter; a cluttered desk reflects a cluttered mind. 5. Plants, flowers and wind chimes are great in an office as they provide good Qi to the whole room. This encourages you to be productive, maintain good concentration and obtain good ideas. 6. You should position your desk so that you can easily see out the window whilst accessing natural light. 7. Good ventilation is important – open windows are great.
DIRECTORY brokernews.com.au
AGGREGATOR / WHOLESALE BROKER
Australian Mortgage Brokers 1300 Broker recruitment@amortgage.com.au www.amortgage.com.au Page 8
FINANCE
ARAP NSW & VIC 0415 210 434 QLD, WA & SA 0434 254 798 Page 6
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Liberty Financial 131 133 www.liberty.com.au Page 3
Quantum Credit 1300 135 212 www.quantumcredit.com.au Page 12
ME Bank 03 9708 3994 mebank.com.au Page 11
Rapid Capital 07 5562 2485 www.rapidcapital.com.au Page 4
National Australia Bank www.nabbroker.com.au Page 5
WHOLESALE
Semper Capital Pty Ltd 1800 SEMPER (1800 736 737) enquiries@semper.com.au www.semper.com.au Page 21
Pepper Homeloans 1800 737 737 www.pepperonline.com.au Page 13
LENDER
Look Property Group - Residential Project Sales & Marketing 03 9827 8288 www.lookpropertygroup.com.au Page 15
ANZ 1800 812 785 www.anz-originator.com.au Page 7 Citibank Mortgages 1300 652 059 www.mortgagebroker.citibank.com.au page 16 & 17 ING DIRECT 1300 656 226 introducer.ingdirect.com.au Page 9
REAL ESTATE
SHORT TERM LENDER
Interim Finance 02 9982 2222 www.interimfinance.com.au Page 2 Mango Credit 02 9555 7073 www.mangocredit.com.au Page 1
Resimac 1300 764 447 www.resimac.com.au Page 32
OTHER SERVICES RP Data 1300 734 318 Page 23
Trail Book Buyers 1300 742 306 or 0434 742 306 info@trailbookbuyers.com.au www.trailbookbuyers.com.au Page 10 Trailerhomes 0417 392 132 Page 27
To advertise in Australian Broker call Simon Kerslake on 02 8437 4786