Back in July I sent a newsletter out discussing why getting your ducks in a row too early can backfire and as I predicted the powers of be (in this case the RBA, ASIC and APRA) have identified that too many Australians are borrowing far too much money and are about to impose some regulations with lenders in NSW and VIC to cap the debt-to-income ratio to slow the property market down (as discussed in this recent The Age article).
Now, I am not going to say a good property strategist can almost certainly predict the future when it comes to the property market – (okay I am kinda saying that) BUT I have copied the original newsletter sent on the 23rd of July 2021 below so you can recap.
Did you know that even if your personal circumstances stay the same…. your borrowing capacity today, might be different in 3 months time?
This is because the policies that determine how much you can borrow can change at any given moment! Let’s talk more about this here 🙂
This is why getting your ducks in a row too early can backfire as an investor! You think your borrowing capacity is set and so you start looking and looking for that perfect investment.
What if it takes 6 months? What if in that time – bank policy has changed and now you can’t borrow as much as you thought you could?
This is why it’s important to check your figures regularly!Christine Williams, July 23 2021
And today here is the perfect example showing how it might cause a bump in the road for this investing couple.
At the end of the day part of being an investor is about working closely with your team of experts. Your broker, your accountant and your strategist – because for this couple they have already begun getting their contingency plan in place should they need to move to another lender fast.
If you’re looking for a strategist to join your team and help guide you before the media finally catch up then let’s chat. I have space for only two more clients to support for 2021 until the new year.