predicted outlook lending and covid19

will lending be harder or easier?

what are peoples thoughts on the market?

will valuations be up or down?

banks or private?

what are the best options for someone with a new ABN?

 

Lending will get a little harder over the immediate future, but not significantly or unreasonably. It's mostly to do with ensuring that you've got a stable source of income.

Valuations will reflect what's actually happening in the market. Most predictions are for a 10% decrease.

Private funding is inherently risky at the best of times. Banks aren't perfect, but they are significantly safer places to be borrowing money from.

Wait until you've had the ABN for at least 2 years and make as much profit as you can in the meantime to increase your borrowing capacity.

 

thanks for your reply.
waiting isn't a option , must buy asap.

what would be the best thing to do in this climate?
i was hoping lenders would be more keen due to drop in trade.

 

If you need to buy now, you first need to figure out what you can borrow. See a mortgage broker so you can be properly informed.

Lenders are driven by risk. This is a risky period and they're being appropriately cautious right now.

 

Peter is spot on that lending revolves around managing risk, within a regulatory framework too. In this enviornment we've got elevated risk so the appetite to lend is going to be reduced. Definately some managing it better than others at the moment.

 

Realistically:
Pay cash or get a job and wait 6 months (or more)

 

Why?

 

part of lease agreement option

 

frame work or scam work.... non banks have little framework

 

the line of risk is very different right now
the perfect client can now be a high risk

they cant stop trading, so the lines are changed.

most brokers dont know whats going on...

 

Sounds like you have an option to buy but don't need to buy, want vs need
New abn with less than 2 years trading = Private lending
Rates are high, fees are high BUT lets you do what you want to do, maybe, LVR's restricted too, so you'll need a larger cash deposit.
Realistically until you can show 2 years trading history no lender will touch it, if anything lenders are less hungry for self employed business now than before covid-19