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As discussed on The Property Nerds with Adrian and Jack (Fouracre Finance).
Before the mistakes: two 2025 shifts investors can’t ignore
1) Rate cuts aren’t automatically “good news” — watch the pricing games
When the RBA cuts, many lenders adjust discretionary discounts for new customers. If you wait for a cut, your “special pricing” can quietly shrink, leaving you no better off than acting earlier. In a variable-rate world, securing a strong discount and settling often beats waiting for headlines.
Investor tip: If you’ve got a sharp discount approved, consider settling before a cut so the reduction flows through on top of your locked-in pricing.
2) First Home Guarantee expansion from
The federal Home Guarantee Scheme has expanded with unlimited places, no income caps, and higher property price caps. Eligible first-home buyers can purchase with as little as a 5% deposit and avoid Lenders Mortgage Insurance (LMI). NSW also retains generous stamp duty relief for many FHBs, which compounds the effect.
Investor tip: Expect a front-loaded demand pop. Early movers tend to capture more of the uplift when policies expand capacity and reduce friction.
Mistake #1: Treating one lender’s “no” as the final answer
Every lender services differently. A decline with Lender A can be an approval with Lender B thanks to policy quirks, income verification rules, shading of variable pay, or handling of existing debts.
- What to do: Get a genuine second opinion from a broker who works across multiple lenders.
- Red flags that need nuance, not surrender: recent credit enquiries, complex income, multiple debts, or niche trust/company structures.
Good process beats “computer says no.” Double-check before you down tools on a purchase or refinance.
Mistake #2: Cross-collateralising your properties “for convenience”
Cross-collateralisation ties multiple properties to one lending arrangement. It looks tidy on paper, but:
- Partial discharge pain: Selling one property can trigger reassessment across the whole bundle — lenders can force debt reshuffles, extra valuations, or even block the release if the rest doesn’t re-service cleanly.
- Refi friction: Moving one loan becomes harder when everything is knotted together.
- Tax complexity: Messy debt apportionment can create problems for interest deductibility.
Best practice: Keep securities uncrossed (stand-alone loans), maintain clean splits, and accurately track what each loan funded.
Mistake #3: Having a property strategy but no finance strategy
Most investors plan purchases; fewer plan their funding sequence. The result is hitting borrowing walls early.
Think in phases:
- Accumulation: Use policy-friendly lenders and structures to add quality assets and grow equity.
- Cash-flow gear-shift: Harvest equity (via strategic sales or recycling) and step into higher-yield assets (e.g., commercial) using fit-for-purpose structures (e.g., trusts) to stabilise cash flow.
- Reset & repeat: With stronger income, re-enter residential accumulation in a separate, clean structure.
Deliberate sequencing can compress timelines to your target portfolio size and income.
Bonus mistake: Selling just because your market finally moved
After flat years, a quick surge tempts many to sell “while it’s up.” But cycles end when fundamentals change, not simply because a chart rose. In robust capitals, an extra year of hold time can turn “below-average” into “at least average.” Be data-led, not relief-led.
Your next step: get a finance game plan
Want help avoiding these pitfalls and building a funding sequence that matches your goals?
- Book a free strategy session with Fouracre Finance: fouracrefinancial.com.au
- Line up your buying strategy with InvestorKit:
General advice warning: This content is general in nature and does not consider your objectives, financial situation or needs. Seek personalised advice before acting.