As the property market continues to go through its usual cycles, you will notice the loan product that GPS offers changes to match.
Currently in demand is affordable, first home buyer stock. This means more townhouses, lower-end product and suburbs further from the inner-city over supply.
Loans coming up in the pipeline are in suburbs such as Meridan Plains (Caloundra), Moorooka, and Ellen Grove (Forest Lake). These are the areas that are working.
GPS does extensive research on a suburb before we lend there, including going for a drive to get a feel for the area.
As credit continues to tighten, we can be increasingly selective about the loans we choose to approve.
The media are printing dramatic stories of property markets crashing and a huge private lending industry forming to take over where the banks have left off.
The real story is much more boring than that. Credit will tighten, over supply will gradually be absorbed and non-bank lenders will not rise and conquer the world.
The same strategies that have served GPS well over the last 25 years, through multiple cycles, will continue to serve us well into the future.