Caught In The Property Herd In 2017?

I want to share some high level insights for 2017 to make sure you don’t get caught in the Herd.

  1. Interest Rates – “The pivotal indicator to watch in 2017″
    • Rising rates will create widespread issues in the property market
    • To date low rates and increasing asset values have supported many loans
    • The CBA before Christmas followed the Bond Market Trent and increased rates, the CBA investment loan rates increased by 65 basis points
    • Higher interest rates for lending will have some significant effects on the heavily geared businesses and individuals in all sectors
    • We hope rates will stay low but be cautious if rates rise in 2017
  2. Bank Lending – “Equity and access to capital essential in 2017”
    • Banks’ lending to the mixed use residential development property market was slashed mid to late last year,
    • Banks insisted on higher levels of equity from property developers of which some could provide and other had to source alternate funds,
    • Banks shut off their lending to only but their core development clients
    • Banks black listed suburbs they considered to have too much residential high rise development exposure
  3. Property Investment returns continue to reduce
    • Capital growth and high yields are hard to find in property across all sectors in the last 12 months
    • Demand for property assets continues at all time high levels across all sectors
    • Look for long term value and follow key infrastructure investment

Endeavour Property Advisory “Discovers Greater Value” for our clients across freehold or leasehold property. Just this week we saved millions of dollars for one of our clients. Lets discuss how we can do that for you!