Anyone involved in residential development doesn’t need to read another article about all the uncertainty and issues which we are experiencing in the industry. Now we should be discussing solutions.
At GPS we have been focused on solutions that allow our borrowers to continue with their projects while providing as much comfort as we can give them.
This starts with some clarification around borrower rates. We have formed the view that it is not appropriate to follow the herd and increase interest rates just because the RBA is doing it. Interest rates charged by GPS have never been directly tied to RBA or other rates. It comes down to project profitability and the availability of funding.
While my crystal ball isn’t telling me how far this run of interest rate rises will go, and whether GPS may need to increase interest rates sometime in the future, I do note that GPS has a long history of not increasing interest rates to borrowers mid-term.
A further solution is to make sure that as a lender, we stay agile and flexible, so we are meeting the needs of our clients and not making life harder for them. The benefit of a private lender such as GPS, is that we have the ability to make the necessary changes quicker than the institutionalized processes of a bank. While it might take months for a larger lender to roll out a package with increased flexibility, or a decision about pre-sales, you can discuss what you need with the GPS team and a decision can be made as to how we can help within 24 hours. This means that you get to start your project sooner, and avoid the continuing shifting sands of costs and profit.
It has always been the GPS way to be flexible in our funding approach, but now this is a key solution that requires consideration. No matter the market conditions, GPS will continue to work with borrowers to tailor a funding package to assist you to navigate these uncertain times. This can include, no or reduced pre-sale levels, prompt payment of progress draws, payment of some deposits etc.
If there is something making you nervous about borrowing for your next project, then we want to hear about it. We may have dealt with it previously, or we may have the ability to come up with a solution that will help. Our team has an impressive amount of experience between them over many, MANY years that we are ready and willing to use to your advantage.
If this sounds like something you need right now – call or email our lending team today on 1800 999 109 or lending@gpsinvest.com.au
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