Why procrastinating now on your property portfolio will cost you
We are in a very interesting time right now, there are no doubts about that. With rates increasing, inflation trying to be lassoed under control and people being more conservative than they were in the last two years, times are certainly changing. Here are six reasons why now is the time to review your current lending aswell as future plans to assist you in negotiating the changing times
Buyers who have preapprovals currently, will be reviewed within the next 3 months. These will be lower due to banks assessment and actual rates increasing
Existing valuations on properties are currently based on properties sold within the last three months, as the window for these sales get further and further, property sales slip or dip, which will impact your existing valuations.
Within the next three months, buyers who are ready right now will be able to spend less, even if nothing changes on their income, assets and expenses, as banks rates and assessment rates have gone up.
Banks policy is forever changing, and can reduce your ability to draw on current equity aswell as plan for the future if you want to access these funds for future investments, be they property, shares or anything else.
Specials on refinances. A lot of bank current specials and cashback/rate concessions were previously done in three month blocks. They are currently extending on a month by month basis now. This lesser time they are giving foresight on is giving lenders and brokers less certainty to how this will look in the longer term. Giving borrowers less certainty if they are putting off decisions to refinance.
Price increase and competition is at its highest in the high equity and income test area. If banks assessments on income and property values is pegged back, this will make situations look (on paper) less attractive to banks if valuations are coming in lower and based on higher assessment rates even if your actual financial situation is very strong, will taper back the view a bank has on ability to service debts.
With increase in supply of 46% from low to high over the last two years, and less buyers, now is the time to review existing debt structures, aswell as future borrowing capacity.
We do not charge for our services and advice, giving you the opportunity to engage us to do this research for you of the whole market, not just one or two lenders and products, ensuring we find the right product that suits your needs
Let’s book in a time and see how we can review the current situation and how you can make maximum of your situation to purchase, or review and save on your existing facilities. Existing clients have seen results in the tens of thousands of dollars by giving as little as an hour of their time, either remote or face to face. See how we can assist you today
