Square Peg, Square Hole
Square Peg, Square Hole
Are you trying to secure a loan for an investment property but having no luck?
I know there's a lot of frustrated investors out there that are having real challenges when it comes to finance and I encourage you to please not take it personally and certainly don't give up hope.
Over the last year or two the banking requirements have tightened up, but I think it's also put a spotlight on the fact that most investors are targeting the wrong properties. Many investors are trying to squeeze round pegs into square holes and that strategy just won’t work anymore.
I'd encourage you to get much more familiar with the best strategy and the right property price point for you to target. You will find you need a support team of property experts these days to be a
successful property investor. It's no longer an individual sport, it's now a team sport with finances at the top of the requirements. A great broker with a lot of experience when it comes to investment properties is a valuable resource and can often open up a larger range of bank products. If you're only dealing with one bank, you're at a huge disadvantage. A great broker is a really good first step to better understanding your ability to gain finance approval.
I also encourage investors to remove their emotional connection to targeting properties and to understand that you will need to work in reverse. You need to understand as investors how to become buyer ready 'before' you go shopping to buy an investment property. You should take the time to understand what the best strategy is, what are the ideal dynamics of a property, the rental yields and so forth that will affect your ability to get a loan. And very importantly, you need to understand the exact price point that is a great fit for you. When you understand these elements, you are designing a square peg that perfectly fits a square hole, and you'll have a much greater success getting finance approval.
The big message here is please don't give up hope - you just may be targeting the wrong properties.
I've seen plenty of investors who were unable to get finance approval for properties change their strategy when it comes to applying for finance and they're now having tremendous success because they're now targeting the right properties.
The BIG WEALTH SHIFT report
If you haven't already downloaded my latest National BIG WEALTH SHIFT Report, here's the link.
This Report outlines the biggest single movement of wealth we have ever witnessed in Australia, and how property investors can profit.
SEQ Big Shift Report
- OUT SOON!
Keep an eye out for my upcoming SEQ Big Shift report where I'll break down a number of key elements that are creating a 'perfect storm' for informed property investors in certain postcodes within the emerging hot spot for property investors.