AdobeStock_238302722

June 2019 – Post Election GPS

Newsletter

I often start my monthly commentary by referencing a frequently asked question. This month everyone has been asking the same question. “What does the election result mean for GPS?” So here goes…

I will leave politics well alone. We have all had enough.

The sun still rises, and life goes on, whoever is elected. Whether policies get enacted has for too many years been dependent on a few independent and small party politicians.

The role of GPS is to find solutions in order to continue to serve our investors, whatever the situation.

The major issue for us at GPS was all the uncertainty in an industry that was already having a bit of confidence crisis. Further falls in confidence slows sales rates which increases loan terms.

When loans are predicted to run longer the interest component of the loan increases, which reduces profit margins for developers and builders. To get good projects out of the ground there is then increased pressure on all, including the financiers, to tighten their belts.

This translates to pressure on distribution rates for investors in order to maintain quality in our loan book.

When there is talk of wealth redistribution, rather than wealth creation, we really didn’t want to be going out to our investors saying, “good news”!

On top of the increased taxes (or whatever they are called as to not be taxes) you would have been earning less on your investments with GPS.

We have all seen an improvement in confidence. New loan applications rates have increased. All of us at GPS are very busy getting on with business.

Thank you for all of your confidence in GPS. It is very much appreciated.

Richard Woodhead – Managing Director

Recent updates

View all updates

AdobeStock_238302722

June 2019 – Post Election GPS

I often start my monthly commentary by referencing a frequently asked...
water

Earn 8.75% p.a. across all GPS loans

Usually in the monthly investor newsletter, we include a progress update...