Boothy Bites Episode 3 - The RBA May Update| Best offers to look out for | What's happening in Lydian HQ

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Transcript:

Transcript:

Jackie:
What are the some of your favorite offers out there at the moment in regards to lenders?

Chris:

We always love AMP, so AMP have got some really cool offers, cheap interest rates that they've got. I think we they should watch that Just Jackie video. So 5.14% was their own P&I   variable, which is a great rate. One of the interesting things about AMP is that if you actually use the equity in your own home to refinance investment debt, they will give you an owner occupier rates as well. So that's a top tip for young players. The other one I got in  here is ING. We always like ING, they've got investor owned 5.49% and they've also cashback with that, which is pretty cool. And then the other one, which is the old Qantas Credit union, which is called Qudos now they had a 4.99% no frills product, which is crazy cheap.

Jackie:
But in the RBA, those cheeky little things, let's start with them.

Chris:
Yeah, well we've got a surprise to do with I think, you know, it's one of those things where there believe all the media hype and the increase in interest rates was a bit of a shock. I think to everyone. The economists weren't really predicting it and the media were saying, you know, we were at the top of that interest rate cycle. Now, obviously, we're not. So the you know, the concerns with the Reserve Bank is still inflation and the inflation rate is up that the band which the RBA look at is a 2 to 3% band. So we're way higher than that band. So they're still wanting to do a little bit of work to slow down the inflation there.
And what that means was probably the next two months we probably got another quarter percent interest increase I think, and then I hope that's the end of the cycle. So for me, getting to the end of June and maybe one more quarter percent, I think that's it. Interestingly, in the States, the inflation figure came down extremely quickly over there. So inflation hopefully will follow suit locally here. So that's some better news there. And then next year, you know, the forecast is that interest rates do fall. So, you know, short-term pain I think right now. But hopefully, you know, we get back on track next year and it's a bit easier for us anyway. Yeah? 

Jackie:
Yeah. So hang on when you out of it because the lender interest rates at the moment what's happening there?

Chris:
Yes that's interesting. So we've come through a really sort of tight cycle of volumes in the system. And what that's meant is a lot of the lenders, they're fighting for these prime loans. They're offering cash back, cash back to to refinance. They're offering heavily discounted rates. The retention seems a massive way out in force right now at stopping people from moving by matching or improving offers which have been made to them by brokers or other lenders.Also matching cash back to the state, which is crazy, right? I'll give you money if you stay in bank with me, which we've never heard of before. So, you know, it's been a real scrappy market to be honest. The interesting sort of green shoots which I'm seeing, we've got a lot of clients who've gone through the pre-approval process. And what that means is they're getting finance ready to potentially look to buy a property, which is which is exciting because the really fulfilling part of my work and all brokers work is helping clients buy that next aspirational property, whether it's their first property or upgrading their home. And you know, there's lots of clients now in our pre approvals who are looking for that next property. So you know, some real good green shoots there. Yes, I think look, it's interesting, but interest rate rise, you know, like I said before, you know, there's lots of lenders fighting for prime loans, which the interest rates are extremely cheap. So but on the flip side of that, there's a lot of clients who are really kind of locked in to their lender because they feel that they can't move because of affordability, because affordability now from a services perspective is increased. So we've got this little niche part of the market now where there's some solutions based lenders who have got a little bit more flexibility and will name a couple people like Liberty who've got this kind of policy which actually helps people refinance to like interest only repayments extend to them, get cash flow budget back on track, They may pay a little higher interest costs, but the cash flow side of things is certainly way better. So we're doing a lot of work around repositioning cash flow re-extending interest only to things like that. So really husbandry around managing cash flows, is that that's the main game for us right now as well.

Jackie:
Yeah. Okay. And so what are some of your favorite offers out there at the moment in regards to lenders? 

Chris
You've put me on the spot because I'm a terrible broker. I've got to read my email I sent myself because I forgot. And so we really we always love AMP, so AMP have got some really cool offers, cheap interest rates that they've got. I think we they should watch that Just Jackie video. So 5.14% was their own P&I   variable, which is a great rate. One of the interesting things about AMP is that if you actually use the equity in your own home to refinance investment debt, they will give you an owner occupier rates as well. So that's a top tip for young players. The other one I got in  here is ING. We always like ING, they've got investor owned 5.49% and they've also cashback with that, which is pretty cool. And then the other one, which is the old Qantas Credit union, which is called Qudos now they had a 4.99% no frills product, which is crazy cheap. Right? That's the last one I want to talk about is the self-managed super fund environment. Right. Like you said before, I've missed myself. If I'm in St George Bank with a separate super fund, I'm getting my paperwork ready now to refinance. But I've been trapped in an interest rate which is over 9%. I think my last letter, which arrived yesterday at 9.52%, which is way, way too high for someone to love. My loan to value ratio is 30 40% against the Greg property. My contributions to super strong, my super balance is good. The rent is covering way in excess of the interest costs on the 9% today. So the cool thing about that is wealth, which is a new lender to the marketplace. They're currently offering a 6.19% rate, which is pretty cool. So a savings rate of over three and a half percent if Chris can get his paperwork together. 

Jackie:
So, you heard it here guys, if Chris Booth is doing it, you got to do it. And so what about the property market? What's happening there at the moment? 

Chris:
Yeah, so I mean that's an interesting one. So we actually went over to manage that. I have got some real estate agents over there who they gave me a bit of an insight into where the markets have for themselves. They're doing open homes now where there's a big attendance each week, so there seems to be a lot more demand. There's still scarce amount of stuff, which is always troubling, and that's why we've seen property prices really maintain, if not increased slowly over the last couple of months. I believe Sydney property prices have increased, which is quite interesting in this environment where it's been a bit of doom and gloom. My gut feel is that as interest rates have now sort of hit the top and people are starting to look at that re budget and cash flow, I also think with this sort of fixed rate cliff which is coming off so a lot of clients coming off 2% rate is now coming down to 6% rates now to maybe reconsider holding that second or third in property in their portfolio. You know, it might just be a stretch too far. So I do feel in the coming months we'll see people considering listing their investment properties, cashing in, recapitalizing the balance sheets and doing that. So I think we'll start to see a few more properties on the market. And again, that's going to that's met with the demand that we're talking about before without pre-approval. So, yes, I think we see an interesting spring for sure. 

Jackie
Yeah. Okay. So probably a good time for a reshuffle if it's going to happen.

Chris:
I think so, yeah. Yeah. So still lots of interest there for sure, which is good. 

Jackie:
And so what's happening at Lydian HQ?

Chris:
Yeah. Well that's the most exciting thing, isn't it. So we've welcome the new broker to Lydian. So we've got a chap, called Christian. He's an ex-PT. He has been in finance that I think is a year and a half now. And he's joined Sydney HQ and he's joined the Sydney Heights. Kids are really excited to have Christian on board and putting some parties in Sydney. Myself and Darren, we went over to the Philippines last month and I took Kelly along for a holiday, so we went to the Cebu head office for Virtual Business Partner where our staff are and were able to meet up with the operations guys. I drank too much tequila and rum and did too much karaoke bad singing. So but that was great. It's great to see those guys as well. They're lovely. And in fact, they moved into a new office today, which is really cool. So yeah, they're really, really happy right now. And I was able to take Kelly to a little trip to Boracay on the way back with you if you want to, a romantic weekend or a few days away. Jackie I recommend Boracay. And then the the last thing was yeah we hosted our first ever pool competition but not swimming pool like snooker pool or pool. I thought we did a pool competition at the office and it was great. We got some hot wings and some beer and we had a competition. I think there's like 20 odd people in the room, plenty of our partners in, you know, old friends and things like that. We had a great night. So bring out Lydian caps. Yeah, got some good feedback. Actually engaged the week. We've got a couple of new partners join us as well, which was great. So a really nice night. And Andrew is always a great host, as you know, because I had a good night there. So that was yeah, that was really nice to do.

Jackie:
So good! Oh, it's so coming up roses here at Lydian HQ. 

Chris:
Hopefully, we're working hard. We're like the duck with the duck on the ponds. My legs are like this, but we look pretty seamless, I think.

Jackie:
That's all that matters. What's on the outside? Nothing like that. I think. You know, lastly, we're looking for new Brokers. I think that's one of the biggest things I can say as a close. We've we've been very successful in engaging in some really big national financial planning firm, some big accountancy firms. We've got a new business who's just joined us, who's who's like part of a property financing business as well, which is interesting for us to partner up with. So, you know, we're a great home for brokers who, you know, just want to give the operations excellence, the projects. They also want a little bit extra help with some clients to be able to help as well, which we can We can do it through our partnership program. So we're a great place for for brokers.

Jackie:
And also, we're fun!

Chris:
Yeah, Yeah. Well you are. I'm a bit old and gray this time, 

Jackie:
Right. Well that's everything. That's great is what's all done wrapped up for a month of May. Jeez, this time next month, we're going to be in the middle the year. 

Chris
Maybe the next couple of days is will be I'll be in the Outer Banks. I'll be doing it from the Isle of Man in England. There you go. 

Jackie:
Oh, amazing. What, like. Thanks so much, Boothy. See you later. 

Chris
Thank you. Jackie, ciao!