The Banks Doors are Open Again

By Jason Beveridge September 02, 2019

Just in case you missed the recent announcement, banking regulator Australian Prudential Regulation Authority (APRA) has removed a key constraint on borrowing limits by lowering the benchmark affordability test rate.

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This change is likely to give potential property purchasers some relief, with analysts estimating it will result in an increase of about 10% to a typical home loan customer's borrowing capacity. This will likely have flow on effects to those seeking to borrow for investment property.

In addition to this, consumers now have access to numerous new players in the market with plenty of second tier lenders as an alternative to the Big 4.

We expect to see confidence returning with money at the cheapest it has been in decades. The downside on this of course, is that if you want returns, you cant just leave money in the bank anymore. The clear and singular message from the Reserve Bank’s continuing decision to lower interest rates is they want consumers to borrow more.

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If you’re seeking better returns than the typical cash rate of 2.0-2.5%, there are high yielding returns to be secured from investing in commercial property with opportunities to invest starting from $500,000.

Feel free to contact us to discuss your commercial property investment requirements.

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