No one is immune to interest rate rises and the effects that that has on the cost of living. Some of us are just better at preparing for it than others.
Banks are always quick to pass on rate rises, and if you have some bank funding, you will already be feeling the effects of those rises and waiting with bated breath for the outcome of each RBA meeting.
Private lenders vary in their approach to rate rises depending on their money source. Some will pass on rates quickly to their borrowers to satisfy investors who focus on chasing the highest returns. GPS, however, has spent the last 30 years building trust and relationships with our investors that gives us the ability to weather storms without needing to pass on all the hurt. Our investors trust us to make smart lending decisions, and that trust, along with a history of positive returns, allows us to balance distribution and borrower rates easier.
GPS’s investor base is all direct, Australian based investors who have been with us for many years. This is a huge positive when you are looking for a lender with reliable funding that can provide you the money you need to keep projects moving, when you need it. We have it. On the flip side, this also means that our Aussie investors are facing the very real economic hardship that we are all dealing with right now.
We have been able to buffer the rate rises to date and keep our borrower rates low while keeping our investors happy. The recent rate rises though have reached a point where this is now getting harder. Our investors are feeling the pinch and want to see the benefits of the rate rises to balance their increased costs.
While rates are on the move, GPS will remain a competitive funding option backed by 30 years of lending experience and a solid investor base.
If you have a Southeast QLD based residential development that is still in need of some funding? Call or email us today to see how we can help.
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