Blog

“Investing in Mortgage Schemes can be a complex business. As one of the few remaining Private Lenders still in business, I have learnt a lot during my 20-plus years in the industry. The intent of these blogs is to pass on some of my knowledge and experience to you.”

Richard Woodhead
Managing Director

August 2022 – Planning for the future

A lot has happened in the last few years! It therefore seemed like an appropriate time to review the strategic plan of GPS. While...

June 2022 – GPS Future Pipeline

It is interesting out there. If you simply looked at the number of loans in our loan pipeline you would expect the team to...

May 2022 – Interest Rates and GPS

Where interest rates are going and the ramifications to the residential development industry is the current hot topic. The simple answer is that there...

April 2022 – GPS as always, is 10 steps ahead.

There is no secret when it comes to my views regarding how everything is now sensationalized by the media for clickbait. It has been...

March 2022 – Flood update in South East Queensland

The Queensland Floods have been stressful and scary for everyone affected. The GPS team is all safe and well, and the office building (minus...

What could 2022 look like?

The SEQ property market. It is difficult to be definitive about property markets at the best of times. Currently it is influenced by many...

The Interest Rate Question

A significant issue for GPS is the volume of very cheap institutional monies which is presently available. This is driving borrower rates down. GPS...

Eureeka Pty Ltd – Over 90% Sold

Construction is now complete on the Eugaree Street, Southport project and 90% of the units are under contract. This great result is indicative of...

Your investment options with GPS

Some of our newer investors may only be familiar with the GPS Invest Pooled Fund, as it has primarily been the fund taking new...

What is “subordination”?

Olivia and Jess, from our Investor Services team, have recently received a few requests from investors to explain ‘subordination’, a term mentioned in our...

Builder cashflows are suffering

Following several conversations with builders GPS has commenced a program to strengthen our relationship with builders on GPS funded projects. It turns out that...

Nothing wrong with being boring

I am always humbled by the support GPS is shown from our investors. Right down to readership levels of this newsletter. Each month I...

Who’s Responsible?

As part of our responsibilities as a Australian Financial Services License (AFSL) holder, GPS is required to “maintain our organisational competence at all times”...

How do we add value?

The Hayne Royal Commission demonstrated the damage that lawyers, who are equipped with the benefit of hindsight and retrospective morality, can do to businesses....

Questions you need to ask when looking for development funding

Australia Day is upon us, signifying the property industry’s return from summer holidays. The major focus for developers this year will be on obtaining...

Life after the banking royal commission

To mark ten years since the GFC, I re-watched the movie The Big Short. It highlighted to me how little has been learnt. We...

Credit Crunch Deepens for Construction Funding

An indicator I look at to determine where we are in the credit cycle is average loan term. When there is plenty of credit...

We take pride in our projects

One of the great moments of satisfaction the GPS team experience is getting to see the final result at the completion of a project....

How will the changes to GST affect you?

Residential development is about to undergo the most radical change since the introduction of GST. For all sale contracts entered after 1 July 2018,...

What to look for in a non-bank lender

A recent survey by Stamford Capital of banks, non-bank lenders and private financiers found that 40 percent of respondents expect the major banks to...

Notice changes to the GPS loan product?

As the property market continues to go through its usual cycles, you will notice the loan product that GPS offers changes to match. Currently...

May 2018 – Banking Commission highlights why people come to GPS

For over 20 years people have asked me, “why would a developer borrower from GPS if they can go to the bank?” After everything...

It’s all about the bottom line

The banks requiring 100% (or more) debt coverage from presales has seen an influx of traditional bank customers approaching GPS to fund their projects....

Not just the developers stuck waiting for finance approval

GPS is largely a “word of mouth” business. Funds come from our direct investor base and we rely on referrals for growth in funds under...

Real Research

For a deal I am working on for a unit development in Wynnum, the valuer made a comment about the project potentially coming up...

Involved in a project where funding is uncertain?

In early 2016, GPS stopped lending while we got our heads around the apartment oversupply issue. We then refocused our lending to avoid types...

What counts as a sale?

Each GPS loan has a set of construction and sales milestones to assist GPS in monitoring the loan’s status. If the Borrower is not meeting the...

Say goodbye to the cranes

Investors frequently ask me to comment on media articles, and so I thought I would get ahead of the game with the latest topic:...

The real cost of finance

It never ceases to amaze me how some borrowers are fixated on interest rate, but are blind to the overall cost of finance. When...

Retirement? – No way

The question I am most frequently asked comes out more as a statement along the lines of “you are not thinking about retiring anytime...

Sub-contractors bearing the brunt of builder collapses

There has recently been a spate of builder collapses. Builder failure risk has moved up the priority list for most lenders. Part of the...

When it all goes wrong

Brisbane is now in a sector of the property cycle which will test all involved in residential development. We have seen the failure of...

The next step for our Next Generation Program at GPS…

At GPS we focus on our Next Generation Program because we know how important it is to pass on skills, knowledge and expertise to...

Watch, learn and show restraint

As the banks are unlikely to broadcast their plans, I continue to watch and learn from what they do, rather than listen to what...
relationship

The importance of building a relationship with your lender

The current market for development financing has highlighted the need for developers to again establish solid working relationships with funders. Banks have pulled back...

Winning no awards for photography

As part of GPS’ loan management procedures, Portfolio Managers, and other GPS staff, make regular site inspections. We like to have someone out at...

Soft Landing

There will be no silver bullet solution to any potential apartment oversupply issue. Here are five reasons I believe that, if the problem exists...
offshore funding

The myth of offshore funding

Promises of large tranches of cheap offshore monies for construction lending have always been about. I can recall back to the petrodollars. I have...

Pick a lender and run with them

Construction lending is a highly specialised field and is currently hard to obtain. Due to ongoing capitalisation requirements, the banks have either withdrawn or...

Horror story

In April 2015 I issued a letter of offer for a project (Project A). I was informed that I was too expensive and they...

The three month rule

Too many developers focus on the interest rate rather than the overall cost of finance. Banks traditionally require presales before construction can commence. Presales...

A brief history of private lending

Private lending started as solicitor’s trust account lending. Due to solicitors making a dog’s breakfast of the industry we saw the Managed Investments Act...
GPS turns 20

GPS turns 20 in 2014

Welcome to 2014, the year GPS turns 20. Rather than a year to party the team at GPS are looking forward to a more...

How Well Do You Know Your Fund Manager?

How Well Do You Know Your Fund Manager? Anyone can lend money but very few can consistently get it all back. The GFC has...

Risk Vs Return – What Is The Niche?

I do not think that I am delving into the financial advice arena by noting the old adage of “the higher the return the...

Mortgage Funds Are Not Property Funds

One of my soap box subjects and pet issues is when GPS is referred to as a property fund. Unfortunately, mortgage funds have had...

Is Your Mortgage Scheme & Operator Currently Licensed?

In order to operate a Mortgage scheme for Investors the operator needs to hold an Australian Financial Services Licence (AFSL). An AFSL can be...