A Lending Boom Is Coming Are You Ready?

by | Apr 12, 2021

Tick, tick, BOOM! How to prepare for the lending explosion 

Ready…set INVEST! 

After a lot of bad news over the past 12 months – thanks a lot COVID-19 – it’s nice to be able to kick off 2021 with some good news. There’s going to be a lending boom which, if you have your property investment strategy in place, is going to make your life a whole lot easier so you can build your property portfolio faster and cheaper.

 

WHY IS LENDING SO IMPORTANT TO PROPERTY INVESTORS?

Most property investors need to borrow money to be able to invest. High-interest rates can make borrowing cash an expensive thing to do. 

But with interest-rates at a record low, and predictions keeping them there for the next few years, suddenly investing in property is more accessible to more people.

 

WHY IS PROPERTY THE RIGHT HOME FOR MY CASH?

Once upon a time, high deposit rates meant our grandparents could bank their savings and watch the dollar amount go up and up. Those fairy tales died out years ago. Deposit rates are woeful now and having your cash sitting in a bank is pretty worthless.

The property market is a better place for your cash because, when done right, it can generate an income. The more properties, the more income, the better off you are.

 

BORROW AND BUY – BUT BUY THE RIGHT PROPERTY!

Combined with the lending boom we’re currently in, we also have a supply issue in real estate. Partly due to foreign investment being cut, and repercussions of COVID-19, there is a lack of new builds available. 

The danger in this is that with cash being cheap to borrow and lending being a new opportunity for many, people are subject to panic. They don’t want to miss out on the lending boom, so they buy an over-priced property that doesn’t have the liveability factor, the walk score, or the Third Space it needs to be an income generating investment. 

In short, don’t just buy anything. The rules of property investment still apply. Buy property close to burgeoning infrastructure, good job opportunities and industry. Buy a property in an area with desirable liveability factors, such as green space and social areas. Buy a style of property that is in demand in the area and buy good quality property that’s been constructed by a developer and builder with good credentials.

 

GET READY AND GO FOR IT

While we expect to see low interest-rates for some years, the property market is an ever-changing, fluid thing, and things can shift quickly. Don’t just watch this space, get yourself ready to act. Seek out property investing experts, start researching what areas are booming, get your numbers in line and be ready to buy good property and hold it for a long time. This is the time to act and not look back in three to five years and wish you’d bought into the market when you could afford to borrow the cash to do it. 

 

HOW TO ESTABLISH A CLEAR STRATEGY

Talk to the experts at Positive Real Estate, who together have decades of experience, about how to borrow and buy in the current market. 

Sign up for one of our information and education events, where you’ll be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you. 

Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities. 

 

Secure your seat here

Click here to like us on Facebook and see more updates like this.

Hey there, do you enjoy the Positive Real Estate Blog? If you did, why don’t you book into a Property Information Night in your area and get more information from our team. You can do so here.

Why Spreadsheet Investing Doesn’t Work

Why Spreadsheet Investing Doesn’t Work

Can a spreadsheet tell you if a property is a sound investment? Many people think yes. Today, I’m here to tell you why it’s not that simple. You can invest based on data and economics or you can pay attention to human behaviour. Which path is the most reliable for your wealth creation journey? Today, we are going to talk about that and how to invest in a post-COVID world, where a lot of the old rules have been thrown out of the window.

Population Explosion

Population Explosion

Over the past few months, Australia’s immigration numbers have significantly reduced due to the worldwide pandemic. Now that things are opening back up again how does this affect us? Where will we fit them in? How will the property market be affected? All good questions so join us for Wealth Coffee Chat!

40+ Years of Investing Wisdom with Agatha & Warwick Moreland

40+ Years of Investing Wisdom with Agatha & Warwick Moreland

If you’re looking for investors who share the big mistakes and the big victories of investing, then you’ve landed at the right episode.

This week my guests are Agatha and Warwick Moreland. Having invested in real estate for more than 40 years, Agatha and Warwick have a lifetime of lessons to share with me.

These two are so beautifully honest. They share “mistakes” such as buying whilst on holidays (which has turned out to be a blessing in disguise). They share how they didn’t invest in Port Melbourne for $29,000 because it was considered too expensive. And they also share some of the biggest pillars of their investing success.

A teacher and engineer profession, Agatha and Warwick are in the consolidation and lifestyle phase of their investing life. With incredible lifestyle choices in front of them, you can’t help but be inspired by the commitment these two have made to each other and their financial wellness.

Housing Market Gains $1trillion!

Housing Market Gains $1trillion!

The housing market has officially hit the record valuation in just 5 months! As property investors, it is important to keep up to date with what is going and finding out what we need to keep an eye on. Let’s Wealth Coffee Chat!

Off the Plan Buying

Off the Plan Buying

Off the plan buying is super important to understand and it’s not always easy to get your head around. They can be many different pros and cons to off the plan buying so come along and join Jason to find out more. Let’s Wealth Coffee Chat!

Financial Regulators Clamping Down!

Financial Regulators Clamping Down!

The APRA is back and clamping down hard on the housing market and are preparing to release lending restriction options. Is this something you need to worry about? Let’s Wealth Coffee Chat!

The 4 Main Lanes of Wealth

The 4 Main Lanes of Wealth

What are the 4 lanes of wealth and which one would best suit you? Come along and find out how you can make the most of these 4 different lanes throughout your wealth journey. Let’s Wealth Coffee Chat!

How To Use Equity to Build Your Portfolio

How To Use Equity to Build Your Portfolio

Today we are learning about equity. What is it? How do you tap into it? Leveraging equity is a big part of the property investment game, so how do people use it to get themselves into the 1%? This is what we are talking about today. If you have ever played Monopoly, you probably understand that becoming wealthy is about acquiring assets. In order to do that, you need cash.

Single Parent Investing with Lauren

Single Parent Investing with Lauren

Lauren is one of the most inspirational investors I’ve met. Having worked her way through a divorce and faced head-on the challenges of being a single parent, Lauren hasn’t let her fears or challenges stop her from investing in real estate and working on her financial future.

If fear has stopped you from investing, or your life circumstances have felt all too hard, then I’m sure you’ll be inspired to take action after listening to this conversation with Lauren.

Once you’ve listened to this episode, I’d love it if you hit the subscribe button so you get notified every time a new episode drops.

I love hearing people’s property investor tales so if you’d like to share yours then please get in touch with me via email at propertyinvestortales@positivementor.com.au

You can watch all of these podcasts over on YouTube at Positive Mentor or at positivementor.com.au