Paul Newall, Raine & Horne Financial Services, advised yesterday of some changes in Bank policies that may severely limit any upturn in the property resale market.

It is no secret that the current market is attempting a very slight upturn driven from the bottom end predominently fuelled by the First Home Buyer (FHB) boost. Approximately 40% of all sales last month were to FHB, with 12,500 subsidy applications received, by the Federal Government, in February. Investors accounted for approximately 10% of purchases.

Many FHB’s have taken advantage of lending policy that has allowed loans of 100% and 95% of valuation.  Last week RAMS removed the 100% loan leaving the St George Bank as the main lender still offering 100% loans.  The major banks who offer 95% loans are now insisting on proof of saving over a period of 3 to 6 months.  Further it is rumoured that some banks will reduce their lending policy to 90% of valuation.  This will effectively neutralise the FHB Boost and stop the market in its tracks.

The fact that the banks and many consumers do not take accout of is the very high cost of rent today.  After paying the highest rents Australia has ever seen there is not much left for many FHB to use to save.  The Banks have to recognise this and view a good rental payment history as a major contributor to the loan application.

The major Banks, who largely caused the Global Financial Meltdown, are now at risk of worsening the situation just so that they can improve their balance sheets and stock price and the Federal Government and Reserve Bank do not seem to be doing anything.

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It is in times of hardship that the real value of a brand shines through.  Raine & Horne is a well respected and very special brand to be privileged to be a part of. As Angus Raine keeps saying “we are now 126 proud years of age”.

Raine & Horne has seen good times and not so good times, has weathered each storm, learnt from the experience, and is still here providing real estate services of a very high quality. It also says a lot where the family still own the business with Max and Angus Raine still running the company.

With an international network and offices in every state and Territory in Australia the Raine & Horne brands, Residential, Commercial, Rural, Valuations and Financial Services provide a full range of property services.

When we look around the world at Corporate Icons falling from grace it is a good feeling to be a part of a group that is so proud of its heritage.  Raine & Horne and all who form a part of the delivery of its services must jealously protect and guard the brand by providing ethically driven services with a high level of customer service.

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It would appear that the trials and tribulations of Suncorp who own LJ Hooker may have filtered down into the real estate group.

This week saw the rumoured departure of CEO Warren McCarthy and GM Angelo Nicholson although the media LJH media march 2009.pdf  statement put out on wednesday states they have both taken leave and that Alan Lambert is assuming their responsibilities.

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Simon Baker`s blog Propertyportalwatch.com has announced the rumoured departure of Australian CEO, Jamie Pride, from Realestate.com.au. Jamie commenced in April of 2008 and was appointed as Australian General Manager by the previous CEO, Simon Baker.  Simon Baker was replaced by Greg Ellis, as CEO, in August 2008. At some point the title Australian CEO was introduced to replace the GM tag. The departure of Pride comes after the REA Group notification on February 18th that Daniel Oertli has been appointed as its new Chief Information Officer.

The departure of Pride may herald some major structural changes in the way REA operates in Australia.  Maybe the current increase in traffic to Domain.com.au may be cauing some angst in the REA Group.

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