APRA’s Lending Rule Changes For Investors

There has been much discussion about APRA’s involvement in the housing market and the negative effect it was likely to have on some investors.

Recent discussions with Banks, Mortgage Brokers and Aggregators about the new APRA guidelines around serviceability have advised this. It has become clear that yield needs will play a larger part in most investors’ portfolios. If a buyer gets put into a property which will take eight years to grow or longer, they can be stuck for eight years of longer until they can invest again. This will not assist in meeting the needs of retirement funding by a long shot.

But if a client invests in a Dual Living property for example or high yielding property  with a positive cash flow rental return and puts the surplus funds each month into an offset account to pay down the loan, within a few years they will have more equity and the higher rent which will go a long way with serviceability to buy another property in the current funding landscape.

Sometimes in life and business just doing what you have always done becomes far less effective.

Contact us now for a better understanding on how this could work for you. Call our office 1300 854 552

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