November 2017 – Our Best Ever Loan Book

Newsletter

We are all very busy at GPS. Quite a few loans are repaying. So much for all the doom and gloom in the media about property oversupply. It shows that with a bit of skill, and a lot of hard work, you can navigate through the issues.

GPS has no exposure to inner city apartments or development sites, and these remain no-go areas for us.

Due to the pull back in lending by the banks, I have been able to be even more selective with the new loans we will be taking to 2018.

Overall, it is more of the same but I have endeavoured to generate a bit more diversity. This has included some Gold and Sunshine Coast projects, as my research shows these areas are in undersupply.

While sales rates remain steady, purchasers are now focused on completed product. This delays the sales process. There will some outward pressure on loan terms in 2018. GPS has identified this as an issue and will implement the necessary controls. This is similar to what we did to avoid the inner city apartment oversupply issue.

I remain comfortable with the Brisbane property market. We have a much lower median price than Sydney and Melbourne.

As always, I look for projects which will be marketed to Australian purchasers. I am seeing an increase in demand from Southern purchasers due to their concerns about the Sydney and Melbourne markets. This is particularly the case for the coasts with “sea changers”, as they can sell their current house, upgrade to a property on the coast and still have money left over to help fund their retirement.

While we are taking what I consider to be our best loan book ever into 2018, we will not become complacent. There are always issues within the property market and you need to remain diligent.

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