Tight credit markets have been the single biggest factor behind the downturn in the overseas property industry. Lack of home loan finance has killed transaction volumes and large numbers of buyers have had to put their plans on hold, damaging cash flow and putting agents and developers out of business.
One side effect has been a rise in “timewasters”, people who are on the surface committed buyers but without the access to the funds or lines of credit necessary to follow through to sale. Hence the introduction of the NCR. Part of the problem is related to a lack of education and awareness of credit limitations and it is in this area that Google’s home loan service could help improve things.
Google’s home loan comparison service – coming to a country near you!In the US, Google’s new mortgage comparison service is different because it dramatically increases the speed and ease at which buyers can get a quote. Significantly, buyers can search anonymously for the best deal based on their personal circumstances, including their deposit and credit rating.
Google no doubt has global ambitions in this area and it won’t be long before you see the service launched in Europe and Asia. The logical step would be for Google to offer property portals a cut of the commission they are generating in return for integrating the service into their sites.
It may be some time coming but the result should be better educated property buyers and more serious enquiries from portals.When Google launches this home loan service in the UK, I would put my bond (no pun intended) on it being a better service that the current comparison sites like http://www.moneysupermarket.com/. It could be painful for shareholders in these businesses but it might just improve the quality of the sales leads you receive.
AS ALWAYS, Google releases this service offerings in the US and UK before they even onsider expanding the market. What I'd like to now, who is with me on trying to get a servce like this here is South Africa?