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Property Investment – Timing is everything

The market waits for no one. It will go up or down with or without you as an investor.

An experienced independent advisor will ensure you won’t buy the wrong asset, wait too long or pay too much.

Whilst it may seem like you’re paying more upfront, having professional advice in the early stages, will ensure that you come out financially on top in the long run.

Remember, the price is what you pay but the value is what you get.

Property is a forgiving asset and you can mitigate the perceived risk largely by ensuring you buy the right property and take a long-term view.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Housing investor loan cap ‘reaching end of useful life’: APRA

The banking regulator has signalled it could ditch its 10 per cent cap on lending to property investors as the measure is “probably reaching the end of its useful life”.

Smaller lenders have criticised the 10 per cent cap for holding back competition.

The marketplace would welcome APRA addressing the cap’s current settings in order to improve competition, which will ultimately benefit the consumer.

Under pressure from regulators, banks have also in recent years overhauled their systems for assessing customers’ incomes, their debts, their cost of living, and their sensitivity to higher interest rates.

Now is the perfect time to seek professional advice if you are considering property investment.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Competition heats up among lenders for first home buyers and investors

Softer conditions in home lending are prompting the country’s banks, whose loan portfolios are dominated by residential mortgages, to target growth opportunities in specific customer segments, including property investors and first home buyers.

Under the Australian Prudential Regulation Authority’s rules to dampen the housing market, no more than 30 per cent of new bank home loans can be interest-only, and banks’ housing investor loan books can grow no faster than 10 per cent.

The big four banks are now all well below these caps after various moves to increase interest rates and tighten credit.

Now is a great time to invest in property and source a great financing package in a highly competitive marketplace.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Getting started in property investment

Some people get overwhelmed when considering a property investment and quit before they even begin. Reality is, property investing is relatively straightforward, especially when you partner with the right professional.

What does success look like to you? Property investors generally invest in property to secure their financial future or to be free to do what they want, when they want it.

Understanding the property market is the key to making the right investment decision.

Strategic Investor Group exists to create your unfair property advantage with advice regarding location, investment strategy, debt structuring and property acquisition.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Congratulations to Strategic Property Group!

Strategic Investor Group is starting 2018 with a bang!

We are thrilled to announce that Strategic Property Finance has been recognised as one of the country’s top performing mortgage brokerages in Australia for this year securing a place in the highly competitive list of  The Adviser’s – Top 25 Brokerages for 2018.

The ranking was revealed in the February 2018 edition of The Adviser, Australia’s top publication for Australian mortgage and finance brokers. This was also determined by scores in five (5) key areas:

  1. Total book size
  2. Total loans settled
  3. Total volume of loans settled
  4. Book size versus years in business
  5. Average broker volumes

Annie Kane, editor of The Adviser, said, “Each year, The Adviser’s Top 25 Brokerages benchmark ranking celebrates the success of Australia’s top brokerages. This year we saw a significant increase in non-franchise brokerages making the list, but with the top end of the table still dominated by major franchise players, it goes to show that there is no one-size-fits-all model and that success comes in many shapes and sizes. “

Our mission is to create an environment where advice, finance and property buying teams work together to create true value for our clients and the ability for them to realise the property market’s true potential. Being recognised and to be ranked among the very best in the country is a fantastic recognition on this delivery.

We would like to extend our gratitude towards The Adviser and Mortgage Professional Australia recognising our efforts and congratulate all of the brokerages who made the list.

Investor Mortgage interest rate payments rise despite no hike from the RBA

Australia’s banking and finance system delivers higher profits to only a few and rips off its most loyal customers, a Productivity Commission report has found.

The commission found loyal customers were “ripe for exploitation”, with one in two people still banking with their first bank. Only one in three have considered switching banks in the past two years, accepting interest rates on home loans up to 0.4 per cent higher than new customers.

Banks responded to orders from the Australian Prudential Regulation Authority to curb interest-only mortgages by raising interest rates – not just for new loans – but for all existing investor loans.

Now’s the time to seek professional advice and review your property investment strategy and mortgage interest rate.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

First home buyers on the rise

First home buyers increased their share of housing demand this quarter, hitting the highest level since 2011.

Overall, first home buyers accounted for almost two in five sales in new housing markets and around one in three in established markets.

Most of the first-time buyers were owner-occupiers rather than investors.

It is a trend expected to continue over the year ahead, with first home buyers, owner-occupiers and local investors tipped to increase their share as foreign demand continues to fall.

Now is a great time to obtain market-leading advice on your property investment strategy.

 

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Area X-Ray – Was your last property purchase average?

Strategic Investor Group’s Area X-Ray classifies over 180 suburbs within a target 20km radius of Sydney’s CBD based on 16 key growth criteria. Suburbs are rated A, B or C based on this assessment.

Over the past 12 months, all categories within Area X-Ray have outperformed the broader Sydney market.

 

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Global Monetary Tightening

Australian banks’ “continued reliance” on wholesale funding from overseas institutions may see pressure on local interest rates.

One reason is “global monetary tightening”, especially given the European Central Bank (ECB) is starting to wind back the massive monetary stimulus which it pumped into the European economy since the global financial crisis.

In addition, Fitch expects the US Federal Reserve to lift interest rates four times this year.

America’s official rate is currently sitting in the 1.25-1.5 per cent range, so even one rate hike would mean US rates would be more competitive than Australia’s (currently at 1.5pc).

Stable customer deposits are the Banks preferred funding source.

Should the Banks be unable to raise sufficient deposits they will need to access the more expensive option of global wholesale funds.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

2018: The year to set up your financial future

Based on the expectations of most economists, mortgage holders have between nine and 18 months of the current record low-interest rates before the Reserve Bank will begin the process of moving them up towards more long-term historical norms.

Despite some projections from economists that the RBA will move rates up mid to late 2018, the central bank will be keeping a very close eye on the housing market and will be loathed to become accountable for any precipitous fall in house prices.

Low wages growth and inflation and very weak consumer spending will provide it with the conditions to retain interest rates at 1.5 per cent.

Interest rates are more likely to go nowhere this year.

Now is the perfect time to secure your financial future by securing the best possible borrowing solution.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group