Finance and property have been dominating news headlines of recent, but is it all bad news?
Some of the stories are:
- Australian Prudential Regulation Authority (APRA) wrote to the banks (and other authorised deposit-taking institutions) announcing further measures to reinforce sound residential mortgage lending practices
- Australian Securities and Investment Commission (ASIC) announced increased industry surveillance measures
- Reserve Bank (RBA) and APRA have commented extensively on the housing market and the recent changes to lending policies
Arguably this is good news, as the aim is to reign in the excesses in both lending and borrowing behaviours. Clearly those excesses are not the majority of the market place, but the rule changes will impact everyone at some point. Home owners and investors alike need a stable long term market place. With the various regulatory authorities stepping up their actions, this can only increase the security of your property ownership.
This highlights the need for a well thought through structure for your borrowings. In real estate the old adage is location, location, location. In finance, it is structure, structure, structure. Don’t over extend yourself. Interest rates can’t stay low forever. Don’t cross collateralise, so that you have a viable exit strategy. Be prepared to ride the various moods of the market.
To varying degrees, all funders are making adjustments to lending policy. So how do you navigate through these changes and know where to find the product or service that best meets your requirements, without putting yourself at risk? The answer is choose an experienced broker. AUS Finance Group has an underlying approach of being measured and cautious when determining funding solutions, whether for the home owner, the investor or the developer. The test is – if the money is coming out of our pockets, would we still do the deal? It has never been a more appropriate time to call a finance broker.
Call AUS Finance Group today to discuss your requirements. 1800 287 346
Disclaimer: This article has been prepared without taking into account your objectives, financial situation or needs and should be regarded as general advice only. Before acting on this advice you should consider whether it is appropriate for your needs and has regard for your own objectives and financial situation. We encourage you to consult a finance professional before acting on any advice provided in this article or found on this website.