National Australia Bank Ltd. (ASX: NAB) and REA Group Limited (ASX: REA) have made a deal that could change the Australian property market forever.
In a statement to the ASX, NAB and REA Group, the owner of realestate.com.au, said they would work together to "develop an innovative end-to-end digital property buying experience that will be an Australian first."
The deal will see NAB provide the financial backing to develop the program, while REA Group will also offer white label loans to users.
REA Group's announcement to the ASX said, "Realestate.com.au has established a dedicated team, to be led by Executive Director of Financial Services, Andrew Russell, to work with NAB to develop and roll-out the new digital experience in 2017."
Looking ahead
In recent years we have seen the emergence of virtual reality in the property market, allowing overseas investors and would-be homeowners the ability to conduct a virtual walk-through of their new homes.
Having the financial backing of NAB may enable REA Group to rollout a service which will help it take full control of the real estate experience.
For example, if it could get past certain legal obstacles, realestate.com.au may be able to control everything from the property inspection to the funding component and legal matters.
In essence, it could become the eBay of Australian property.
"The partnership will bring property search and home lending together in a way that's never been seen before," NAB's Chief Operating Officer, Andrew Cahill, said in the ASX announcement.
Foolish Takeaway
There is a massive opportunity for a disrupting service to enter the Australian real estate market. Just think of how much it would cost you to buy or sell a house today. The legal fees, real estate agent fees and so on.
The rise of online property search sites from providers such as Domain, owned by Fairfax Media Limited (ASX: FXJ) and Realestate.com.au, has transformed the property market.
However, the property market may only be where the the stock market was 40 years ago. Indeed, if NAB, XERO FPO NZ (ASX: XRO) and REA Group have anything to do with it, your company could connect its Xero accounting with NAB to process an on-the-spot loan via realestate.com.au!
