There has been a lot of talk over the past couple of months about the success that GPS has seen thanks to a nice full loan pipeline, repeat borrowers continuing to return to GPS and the hesitancy of the banks due to rising interest rates.
This means that for the first time in a long time, we are back in full Fundraising mode! GPS has been accepting new funds consistently, but we have been waiting to build a loan book containing lots of ‘typical’ GPS loans before really welcoming in new money.
That time has come.
The GPS Invest Pooled Fund is open at a current rate of 6.00% p.a and the GPS Invest Select Fund currently has offerings at 6.50% p.a. with more offerings on the way!
There is no need to worry that this fundraising push is because something drastic has changed. There are a couple of key, and great, reasons why GPS is back to actively raising.
1. None of us are strangers to inflation. It feels like the cost of everything has gone up, and the materials needed to build our projects are no exception. Extra fundraising is needed purely because the standard GPS projects that we know, and love, cost more to build; and
2. Our repeat borrowers are doing great! Over the years GPS has appealed to the smaller builder/developers that are too restricted by what the banks offer. We have then always focussed on making sure that those relationships are maintained. This means that now, our once smaller borrowers are more experienced and are starting to slowly move into bigger projects.
GPS is not pushing ourselves out of the niche market that you expect from us, that niche is growing, and we are growing with it.
It is important to note here that when GPS was not confident in the market, we did not actively raise funds, and in some cases we actively returned money to investors. Our focus was, and always is, ensuring that we consistently act in the best interest of you, our investors. The fact that we are now actively seeking to raise funds should indicate the level of confidence we have in the GPS loan pipeline.
This confidence comes from the predicted increase in undersupply in the South East QLD area meaning that selling the product is not going to be a problem! There were days when a project build would finish on time and the delay in repayment would be from slow sales, now projects are delayed in construction, and they are repaid quickly due to eager buyers. The desire for more housing means that we can continue to focus on our ideal projects of medium-priced product in good markets.
You will continue to see the same projects from GPS that you are used to, just a little larger in size! If you have new funds to invest, or a referral to pass on, please do not hesitate to reach out to myself or Courtney.