Loan pipeline is regaining its momentum following our slowdown pending the federal election result. I expect that it will take us until the end of September 2019 to get back up to speed.
None of us wants the process to be rushed, as that will only lead to bad lending.
There are now seven loans at advanced stages of due diligence. Three are townhouse developments for repeat borrowers. The next stages of current successful townhouse developments account for another two. Plus a unit development for a repeat borrower in the same suburb as their previous development, and lastly a unit development in Bulimba.
Long term GPS investors will appreciate that Bulimba has served us all very well over the years.
Quantity of new loan applications is up but, as a percentage of the applications, the quality is down. This has led to a lot more vetting by GPS.
Valuers have become “more conservative”. While this has increased our work load and rejection rate, it assists in our drive to maintain loan quality.
Thank you to our GPS Invest Select Fund investors for your ongoing patience. We look forward to offering you some quality new investments in the near future.