Posted by Paul Ryan on 22-March-2012, 08:19 AM
Co founder of Wizard Home Loans in 1996 and in 2007 launched new non bank lending business Opportune Home Loans. Having 20 years experience in home loan lending there are two key components to ensure all consumers receive a better home loans experience, a healthy mortgage market and greater education for consumers to understand more about their mortgage and financial stability.
I had a chat to my local café owner the other day. He’s been in business for 31 years and reckons he’s never seen things this bad before. In other words, his customers just aren’t spending any money.
Put simply he says that pre GFC his regulars would come in and buy 3 items; a coffee, a sandwich and a chocolate bar or a muffin. These days he’s lucky if they order any food. They’ll still pay for their daily dose of caffeine but they’ve tightened their wallets on lunch. (And no. We’re not talking a sirloin accompanied by a bottle of shiraz folks!)
No wonder Myer and David Jones are reporting record falls in their profits. With so much talk about the carbon tax, the mining tax and interest rates, we’ve all become so nervous about spending money that shopkeepers, café owners and retailers are battling to keep their doors open.
I think we need the Reserve Bank to show some initiative. By reducing interest rates and giving home owners some breathing space we might see the resurgence of the humble ham sandwich – or heaven forbid we really let our hair down and lash out on a blueberry muffin. Perhaps not so great for our waistlines, but I know it would make Andrew, my barista, a whole lot happier!