Spring is the busiest time of year for property sales. People respond to coming out of the cold winter months by looking for a new home, and that’s great news for mortgage brokers.
According to the Commbank-CoreLogic RP Data Home Buyers Index (HBI) from October 2015, markets with a ranking of 3 are balanced, rankings of 1 or 2 are buyer’s markets, and 4 or 5 are seller’s markets. On a national scale, the HBI points toward a balanced market, but looking more closely at capital cities shows how successful mortgage brokers could be.
Why is right now a good time to be a mortgage broker?
Coupling an extreme seller’s market in Melbourne and Sydney with the busiest time of year is a recipe for success as a mortgage broker. An extreme seller’s market, or a ranking of 1 on the HBI, suggests homes are selling for more than their median value, or that there is serious competition for properties, meaning a fast sale is likely.
The CoreLogic RP Data monthly indices, up to July 31, 2016, show the median dwelling value in Sydney to be over $1 million. In an extreme seller’s market, buyer’s are more active. More active buyers points to more home sales, and that means people are going to require lending. That’s where you step in as a mortgage broker, mentored by an industry expert from Redrock.
But why spring?
Typically the busiest time of year, spring is a great time for lenders, as there’s always going to be activity. With markets so expensive, and buyers so keen to make their move, the loans you provide could be far more than at other times of the year, which will bring in more money.
That’s one of the best things about being your own boss, after all. You get to keep the lion’s share of the profits. Spring is the season where you can make the most of that advantage.
Having sound cash flow at the inception of your business is also going to be good for growth from the outset. Many businesses in Australia need to wait until their product breaks into the market before they see reasonable profits and can expand. That won’t necessarily be the case if you become a mortgage broker in time for this busy spring season. You can capitalise as soon as you’re in the market, and expand at the rate you choose, not the rate your income limits you to.
To learn more about becoming a mortgage broker this spring, talk to the team at Redrock today.