In our monthly newsletter we usually have a range of available investments. At this time, we have put a stop on all new investment. We expect that this will only be short term.
As noted in previous newsletters, the last federal election caused a ‘lull’ (I am being polite) in the residential property industry. Since that time the team at GPS have been working hard to regain traction. However, we have been hit by two events.
The first was a repayment of a loan sooner than expected. It had 21 sales contracts in place when titles were issued. I expected the settlement process to take several weeks due to the inevitable delays caused by the banks who fund the purchasers. They all settled in one afternoon! I never knock back a loan repaying.
The second was a new loan being rejected. We weren’t happy with a particular aspect and so we did not proceed.
I am known for some of my sayings. Persistent nagging of the GPS team members assists in embedding such sayings in their comprehension. The saying that best reflects the current situation is “We would sooner not take your money, than not give it back”.
What GPS has done demonstrates that the sayings are more than just words. They’re the way we do business. It would have been easy to push through a loan so we could use the monies. This would have been the wrong thing to do for both the GPS investors and GPS.
We have a number of good loans coming through the due diligence process (see New Loans are Coming). They won’t be settled until we are fully comfortable with them.
Thank you to all of our investors for your patience and on-going support, it is truly appreciated.