MFAA 2012 Convention Blog

The findings from the recently released CBA/MFAA Home Finance Index (HFI) were presented by CoreData’s Andrew Inwood on Thursday 24th May at the National Convention.

Armed with a substantial amount of data, Andrew delivered the key findings, shared insights and provided tangible ‘take aways’, drawing on the HFI to feed into the Convention theme; The Future Unfolds. From the findings, how is the future looking?

First time buyers

• Nationally, there is now a majority of respondents (51.7%) who believe that it is a good time to buy a new house, which is an increase on the previous index of 36.1%.
• Traditionally, buyers have deferred purchases in order to afford to buy residential property in more affluent areas. This trend is starting to shift.
• People are saving more and more frequently, indicating they are warming up to the idea of investing in property.

Next time buyers

• The number of next time buyers saving more than 20% of their take-home income has increased marginally to 26% from 25.8%, the highest level since November 2009.
• The proportion of next time buyers who will put money aside in case the economic situation deteriorates has dropped considerably to 31.7% from 42.2% in Sept 2011, reflecting expectations of a more stable outlook.

Opportunities for growth

• Cross selling presents a clear opportunity for the mortgage market*, with fewer than half of respondents with a home loan offered home protection (42.9%), life (31.5%) or loan protection (47%) insurance when they took out their loan.
• Overall, 11.7% of respondents currently have their own self-managed super fund, up from 7.6% last quarter.

“Self-managed super funds represent a fast growing part of the superannuation industry, and currently, accountants are handling a lot of these investments. It is essential that this becomes a part of the broker channel to become a trusted partner in these investments.”

“The market is warming up and property is becoming an attractive investment option. We need to display utility and competency to gain client’s trust. We are facing the biggest opportunity we have seen in the last 5 years to see this part of this industry grow.”

Andrew shared insights on what is important to potential investors when looking to make a financial commitment;

“People are seeking utility from their broker. They want to understand how much something will cost them and what it will do. What benefit will it deliver them and how does it stack up against other options? If you can articulate the utility of what you do, your ability to close deals is going to rise substantially.”

“Clients also want someone they can trust, so competency is a key consideration for them. Speed is no longer is particularly important, however the utility and competence of their broker plays a critical role in their decision making process.”

“In the end, it’s about a brand called YOU. You as a broker need to be able to articulate who you are and what you do. The gap between bank and borrower preference has narrowed – if these trend lines meet, it will create a very interesting time in the industry.”

And a final word on the future?
“When comparing globally, Australia is a very expensive place to live. We just haven’t been hit by the GFC as hard as everywhere else. But it will change, things always revert to the mean – it’s just about how and when it happens.”

MFAA Members can access the full Home Finance Index via the MFAA website here

Andrew Inwood, Founder & Principal, CoreData

*Please note, brokers must be appropriately authorised or licensed to offer these services.

By Martin Wanless, Editor, Mortgage & Finance Brief

I’ve attended a number of conferences and conventions across a number of different industries, and the final day is sometimes a little bit of a drag. After a few days of networking, digesting information and being away from home, the last day of many conventions are typically poorly attended and those that do make it are moving a little slower and dragging their feet a little more than they were 48 hours previously.

Today was different. Following on from last night’s spectacular 1920s themed Gala Dinner, which had over 800 people in attendance, Day 3 of the 2012 MFAA Convention has been a stunning crescendo to a thoroughly enjoyable three days.

I am posting this before the traditional Comedy Lunch – this year’s guest is UK comedian Jeff Green – and catching a flight back to Sydney, however the line up of speakers this morning would be the envy of every conference in Australia and beyond. 

How much better can you get?

First up, was Brad Smith, who I’ve discussed in a bit more detail further down this blog. He was quickly followed by Keynote speaker Michael Clarke, who spent an hour with Tim Lane discussing all elements of leadership, his career and then taking questions from the audience.

Alisa Camplin and Sir Ranulph Fiennes, who followed the newly-wed Clarke, have been inspirational – the mentality needed to succeed in what they do is astounding, especially in the face of severe adversity.

I am returning home with a whole host of new information, ideas and inspiration. If you’d like to share your thoughts and insights with me, please get in touch at martin@mahlabmedia.com.au.

This is not in Sir Ranulph Fiennes vocabulary. What do you do when the propellers on your boat freeze in the middle of glaciers? You ski.

- Live snippet from Sir Ranulph’s session at the MFAA 2012 Convention in Adelaide

An incredibly inspiring and moving 45 minutes was spent with Alisa Camplin this morning, following tea break. Alisa shared with unwavering honesty and clarity her journey to achieving the Olympic Gold title. Describing her challenges in being taken seriously by others, despite age, ability and capacity, she points out, “the world is full of knockers…but sometimes you just have to back yourself.”

Some would call Alisa Camplin’s prepartion a little intense. She calls it attention to detail. “You need to train as you mean to compete. If you fail to prepare, prepare to fail. Everything matters if you want to be your best.”

Describing the big day, Alisa recalls every detail, including the breakfast of four eggwhite omelette (the same breakfast she’d had every day for the past 5 years). “On the morning of the Olympic jump, I knew I hadn’t cut any corners, I had done everything I could to succeed. I had no regrets. And I was free.”

“I had asked my family not to come on the day I was competing. I don’t go to work with my Dad on the day of his most important meeting. But my mum had come anyway and squeezed herself into one of my ski suits – a yellow one, so she looked a bit like a banana. She dove down the slope to me and said; “Alisa, you did it, you won the bloody Olympics!” Having my family there with me made the whole experience perfect. Being crowned Olympic champion was sensational. But it also completely changed my life.”

Alisa ended with a thought provoking question; “If you really want something, almost anything is achievable. What do you want to achieve?”.

The silence in the room concealed the many cogs turning in the minds of the audience, no doubt.

By Martin Wanless, Editor, Mortgage & Finance Brief

First up, on Day 3 of the MFAA Convention was Brad Smith, who entered the theatre on a motorbike, prompting one or two people to look at each other, wondering about OH&S in the workplace, then quickly dismissing the thought and enjoying a rather inspiring session.

Brad, an incredible young guy, told the story of how he launched his motorbike brand Braaap. Highlights of Brad’s session were the story of going to China for two weeks, aged 18, to search for a manufacturer to make the bikes he’d designed.

He’d never been outside of Tasmania without his parents, and never been outside of Australia. He arrived in China with no accommodation and unable to speak the language, and was ‘laughed out of’ over 50 manufacturing plants. He found a company who would work with him, and six years later he’s still working with them. A lesson in perseverance if ever there was one.

Other insights from Brad that particularly resonated were if you do what you do each day and it’s good, you’re putting your business in jeopardy, because someone will come along and do it better.

The principle of proximity power was also insightful: “It’s hard to soar with eagles if you’re surrounded by turkeys.”

He left the audience pondering two things: 1. Hell on earth is meeting the person you could have been; and 2. What does ‘sick’ mean these days.