GPS Investment Fund Limited (GPS) is in the business of risk. In fact, by default, all investments are in the business of risk. When looking to invest, your risk-reward comfort zone is something you may or may not be familiar with, but you should be aware of where GPS sits on the scale.
We’re certainly not the only Registered First Mortgage Investment Fund in this market, but we strive to be the best. Our 30-year track record of investor success, network of trusted developers and builders, and rigorous borrowing standards, are a testament to that fact.
What these decades of industry expertise have given us are an unparalleled understanding of our market, confidence in our product, and recognition as a trusted local business. It’s also left us with enough experience to reaffirm that we do not offer riskier, ‘competitive’ distribution rates, resulting from uncertain borrower deals, in a bid to justify projects that are not made in your best interest.
It’s not an uncommon occurrence in the GPS office to receive feedback from a potential investor, or even an existing one, that they can find ‘higher rates elsewhere’. The fact of the matter is, there are higher distribution rates elsewhere, and as with the balance between risk and reward, higher rates often result from higher risk.
If you’ve ever wondered what a graph of GPS distribution rates would look like, you only need to picture a straight line. This stability is not something that happened because of lucky gambles or a ‘shot in the dark’. It’s the outcome of hard work and a razor-sharp focus on always providing the best possible outcome for our investors. That’s why we invest in South East Queensland, because we know South East Queensland. This is, and always has been, the focus of GPS, and is our unique point of difference.
Other investment options may claim to offer a competitive distribution rate by branching out to ‘unique’ opportunities, or by seeking alternative options to their usual area of expertise. A more direct way to look at this is; they’re taking greater risk at your expense, to offer potentially higher, but certainly not guaranteed, returns.
This is not a tactic we’ve ever pushed as a point of sale. Which is because we, as both investors and lenders, know that the effective balance to find success on both sides of the scale is to find your niche, and excel at it. That is why we pour our efforts into long-standing relationships with builders and borrowers and only select projects with our investors best-interests at heart.
It’s because of our good relationships that we can confidently offer you a consistent distribution rate, with a focus on long-term growth. And, as of right now, our retail GPS investors have not incurred a capital loss.
If you find yourself shopping the market or are fed an ad with a sky-high distribution rate, it can be easy to get swept up in the possibilities and not realise that this new, inexperienced, or risky option is lacking the experience and lending quality to make you comfortable about your investment.
Remember that higher returns equal higher risk. Don’t be blinded by the guise of a shiny deal, and consider the reasons why that offer is possible, and who is managing your finances behind the scenes.
