People don't realise there are three big things about to happen. Listings are coming on and piling up through October and November, then they tank over Christmas as agents go on break and buyers and sellers just want to get it done. Yields are rising, not because rents are booming, but because prices are coming back down. And around every RBA rate rise, buyers get nervous and open homes get quieter.
In this episode of the Property Nerds podcast, Arjun Paliwal (CEO of InvestorKit) and Jack Fouracre from Fouracre Financial break down what's happening in lending right now and why the next three months could be a buying window you look back on. They cover what a 0.25% rate rise does to your borrowing power, the price war among non-major lenders, how a 40-year loan term changes the way your debt is assessed, and how buffer-based lending can take the pressure off your cash flow.
They also cover why business owners use equity buffers rather than paying themselves a bigger wage, and why now is a good time to get pre-approved.
Chapters:
0:00, People Don't Recognise There's 3 Big Things About to Happen
1:51, Rates Have Risen. What Does 0.25% Do to Your Borrowing Power?
2:47, The Price War Among Non-Major Lenders
3:52, Policy Shifts: 40-Year Terms and Interest-Only
4:11, What Rate Rises Mean for Bigger Portfolios
4:45, 40-Year Loan Terms: How Your Debt Gets Assessed
6:42, What Is Buffer-Based Lending?
8:08, The Maths: $18K a Year vs a $100K Buffer
9:45, Why Business Owners Use Buffer Lending
10:34, The ATO Credit Card Backflip
12:59, Finance Consultation vs Finance Strategy
14:18, Do Pre-Approvals Still Count When Rates Rise?
15:24, Big Thing #1: Listings Before Christmas
15:57, Big Thing #2: Yields Rising as Prices Come Back
16:15, Big Thing #3: Fewer Buyers Around RBA Rate Rises
16:45, How Fouracre Financial and InvestorKit Work Together
17:54, Recap: The Buying Window, Rate Impacts and Bank Price Wars
InvestorKit - Back To Back "REB Buyers Agency Of The Year 2023, 2024, 2026"
Book your discovery call here: https://www.investorkit.com.au/discovery-call/
If you're scaling a portfolio and want the right structure before your next purchase, the team at Fouracre Financial can walk you through it: fouracrefinancial.com.au
HOW WE CAN HELP YOU:
By being the most trusted, data-driven Buyers Agency for aspiring investors who wish to create real financial change by helping them invest with confidence, outperform the market, and build a high-performing property portfolio. https://www.investorkit.com.au
CONNECT WITH INVESTORKIT:
Website: https://www.investorkit.com.au
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Disclaimer: The information provided in this podcast is general in nature and should not be considered as personal financial advice. The podcast host, guests, and contributors are not licensed financial advisors. Please seek professional financial advice that is tailored to your situation and circumstances before making any financial decisions.
