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While record low interest rates may be great for home buyers, there’s not a lot of joy for self-funded retirees! But one private lender has a solution. Whilst RBA Governor Glenn Stevens, and First Home Buyers, may be pleased with the results of lowering Australia’s interest rate to an all-time low, not all sectors of society feel the same. For
As developers struggle to secure finance to complete projects, the role of the private loan lender in Australia is gaining more importance. If you thought the only place to get a loan was a bank, you’d be wrong. And if the major banks continue to clamp down on lending, they’re likely to become the last place to go! There’s nothing
With major banks increasingly reticent about loaning money, it’s no surprise that private money lenders are stepping up in Australia. As the country’s major banks continue to clamp down on lending, an increasing number of private and commercial borrowers are turning to private loan lenders in Australia. In fact, non-bank finance groups, such as Credit Connect Capital Ltd, are now being
Scan the historic graph below to see how much the retiree living off their nest egg has been disadvantaged by low interest rates in the last decade; indeed, how much more disadvantaged investors have become November 2011. Since the truth is that no one can predict markets or the next interest rate move, and if they could, a 0.25% or
Peter Benson, CEO of Credit Connect Capital Limited, says it is a long time since he has seen conditions so favorable for commercial lenders in over 20 years in the industry. He said, “the number of credit worthy borrowers prepared to provide first mortgage security over real property, importantly at low LVRs, is tremendous, and that puts investors who lend
Low Interest Rates Low interest rates, low growth and equity market volatility are making it particularly hard for those in their 60s as they approach retirement. Many commentators refer to the conditions as financial suppression imposed on people who have saved hard for retirement their entire life. We examine what is driving low interest rates and how long will they
Low rates are essential for the rebalancing of the Australian economy and to encourage dwelling construction to support population growth but lenders have not necessarily participated to the extent that they could or the RBA would like to see – graph below. The RBA has signaled persistent low rates and construction lending represents an opportunity for smart investors seeking higher
We are compelled to look beyond the headlines and examine the substance about the Australian economy and property market. We find the Australian property market is, on the whole, sound as security and we welcome the RBA’s approach. Nevertheless, as commercial lenders we remain selective, vigilant and maintain conservative loan to value ratios based on independent valuations, just in case
As a non-bank commercial mortgage manager, Peter Benson, CEO of fund manager Credit Connect Capital Limited, can generate income in all sorts of property market conditions but he prefers an orderly market and thinks the RBA’s comments on the Australian property market are sensible. Peter commented, “They managed the 2004 situation along with APRA and played an important role in
It is hardly a surprise that people approaching retirement have turned to property as an investment solution for retirement, given the performance of the alternatives. In its recent Financial Stability Review (Sep’14, p50), the RBA noted that while property investment and gearing increased only modestly since the early 2000s, “the share of investors aged 60 years and over increased significantly.”
