Figures recently released by a leading Australian research company show that consumer confidence is rising. This change comes after a period of steady decline where consumers have been apprehensive to buy.
The latest Roy Morgan Consumer Confidence Index suggests that consumer confidence rose by 1.1 percent to 115.1 points during the last week of May. This increase indicates that consumers have responded positively to the Reserve Bank of Australias decision to drop the official cash rate to 1.75 percent and that many consumers are now interested in looking at their buying options.
How Has Consumer Confidence Increased?
The research published by Roy Morgan suggests that the consumer view of the economy was the primary driver of the rise in confidence. Consumer views towards economic conditions over the next 12-months rose by 6.1 percent and their views towards economic conditions over the next 5-years grew by 3.3 percent. Though consumer confidence, according to the Index, towards household purchases fell by 0.7 percent.
So while consumer confidence in relation to the Australian economy is strengthening, consumers are still apprehensive about buying household goods. In fact, consumers are saving more, paying greater amounts off their home loans and looking to buy assets, rather than goods that retain little or no value.
How Can Brokers Use Positive Consumer Confidence to Their Advantage?
Brokers who are looking to increase their level of business success should focus their attention on their number of leads and client conversion and retention rates as the concentration of consumer confidence escalates. The more consumer confidence rises, the higher the number of potential clients for a broker. Prospective clients are looking to secure the most affordable mortgage package and uncover opportunities that enable them to break into the property market or enhance their portfolio.
According to CoreLogic RP Data, the total returns on residential property, since June 2009, highlight that property values and gross rental returns are continuing to rise. Data over the last 12-months also suggests that there is continuing market growth, despite a downturn.
Over the last 12-months, according to CoreLogic, capital home values nationwide have risen by 10.0 percent, with total returns being as high as 13.9 percent. Individual capital cities, all except Perth, have seen an increase in value over the last year. Sydney home values rose by 16.9 percent, and Melbournes by 17.5 percent. So while gross rental returns in these capital cities have plateaued, capital values continue to increase.
This data makes it the right time for brokers to look at how they can better their business. Lets look at how.
For those brokers looking to enhance their existing business, eChoice, an award winning and leading Australian aggregator, offers you a Fulfilment Lead Tracking System (FLeaTS), which is state-of-the-art Customer Relationship Management (CRM) software. The FLeaTS platform is unique to eChoice and provides brokers with NextGen integration, auto-population capabilities, commission splitting for your referral networks, free unlimited property reports, as well as a client management tool, strategic market automation and end-to-end lifecycle management for all loan applications. These tools make managing your brokerage business easier and more efficient in terms of productivity.
The eChoice pathway welcomes existing brokers who are looking to switch to an aggregator that is transforming the mortgage industry, along with financial planners who are seeking to diversify their business and new entrants who wish to change their vocation and embark on a financial career. So whether you are experienced or looking to upskill, eChoice can provide you with all the tools and support you need.
For financial planners and those looking to break into the mortgage industry, eChoice can provide you with award winning training that enables you to complete you Certificate IV in Mortgage Broking. eChoice can also provide business and marketing support, so that you can take your new enterprise to the next level and continue to enable it to grow well into the future. You will also learn how to qualify leads, and maximise your earning potential.
Are you interested in knowing more about joining eChoice as a broker? If you said YES, then contact eChoice. We can help you take your brokerage business to the next level now and well into the future.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!