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There’s no doubt that we are in interesting times, with COVID-19 dominating all aspects of life.
To keep you informed on how this may affect lending and property, we’ve put together this podcast.
Firstly stay safe, listen to the experts and don’t panic. This is true for lending:
• It is business as usual from the Banks, although service levels may slow with remote working.
• Anyone experiencing financial stress should reach out – to us or their lender.
• We’re likely to see relief offered by Lenders and Government similar to in Europe.
For property, we’re not experts but anecdotally we’re seeing challenges around valuation arrangements and auctions.
• Fundamentals remain strong and there is still activity particularly from home buyers (a lot of investors we’re seeing are also setting up pre-approvals)
• Risks to the downside include heightened/ prolonged virus spread, forced asset sales, credit tightening
• Once the virus is controlled there are significant stimulatory measures being enacted including cheaper interest rates which could help boost the market – bank lending policies will be an area to also watch closely
• We are receiving many refinance requests, there may be opportunities to update your lending to your advantage (e.g. lower interest repayments, $3,000 refinance cash backs per property, new interest only terms, equity releases etc.)
Long Property are secure in how we operate and available to assist wherever needed.
Enjoy the podcast and stay safe.
