The Elephant in the Room
The property podcast for the thinking person.

Episodes

Episode 285: Are Rising Property Prices Creating a Lost Generation of Homeowners?

With property prices soaring and borrowing capacities diminishing, it's no wonder that the bank of mum and dad has become the country's fifth-largest lender. But what does this growing divide mean for the future of aspiring homeowners and society at large?

Today’s guest, Brian Hartzer - Chairman of 2Be, Beforepay and Reejig brings his extensive banking experience and fintech expertise to shed light on innovative lending solutions. His extensive involvement as an angel investor and advisor to numerous fintech and technology start-ups positions him as a leading voice in the industry.

Join us as we explore the opportunities emerging from the current lending landscape and discuss how innovation can bridge the gap between first home buyers and their dreams of homeownership. We'll delve into the development of alternative lending products and how they can empower those who don't have the luxury of familial financial assistance.

Don't miss this enlightening conversation that addresses the pressing challenges faced by home buyers in Australia and unveil the possibilities created by fintech and start-ups in the lending space.

Episode Highlights:

00:00 - Welcome

01:19 - Who is Brian Hartzer?

02:58 - How big is the bank of mum and dad?

03:35 - Are older homeowners being overlooked in the borrowing landscape?

06:19 - Reasons why people over 55 want to borrow money

10:20 - What is a reverse mortgage?

12:58 - How does a reverse mortgage work?

14:32 - Reverse mortgages and the difference in interest rates

17:54 - The future of super funds in this space

19:28 - The bank of mum and dad situation

21:58 - The advantages of having a parental guarantee

27:23 - Brian’s take on the current banking industry

32:15 - What’s driving the net interest margin down?

35:27 - Are banks writing loans under the cost of the capital?

40:09 - What’s going on with the banks’ lending to customers?

50:07 - The longest downturn Australia’s had in property prices

55:14 - How Brian feels about the Reserve Bank of Australia

55:56 - Brian Hartzer’s property dumbo

About Our Guest:

Brian Hartzer is a seasoned executive, mentor, and investor. He was the CEO of the Westpac Banking Group from 2015 to 2019 and has held leadership positions in major banks in Australia and the UK. Brian has also served as Chairman of the Australian Banking Association and the Retail Banking Committee of the British Bankers Association. In addition, he is involved with multiple startups in Sydney as Chairman and serves as a senior advisor to a data science company. Brian is actively engaged in philanthropic endeavors, including being the President of the Board of Trustees of the Australian Museum. He holds a degree in European History from Princeton University, is a Chartered Financial Analyst, and holds dual US and Australian citizenship.

Connect with Brian Hartzer:

Resources Mentioned in the Episode:

Resources:

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Chris Batesde-index