Let’s talk about the future

We are 2 months into the COVID-19 Pandemic, a worldwide time of massive change. A time that was unexpected and unlike any event to date.
 
I believe that CHANGE is coming.
 
No one knows exactly how the governments will change money policies.
Will we go into negative interest rates?
Will we move to a digital currency and become a cashless society?
There is speculation will we move to a global currency.
 
With all this uncertainty swirling around us, it’s hard to make decisions, especially monetary decisions that will affect you right now and for many years to come.
 
My opinions is, don’t sit on the fence and wait too long if you need to refinance, need a new car or if you are wanting to do some work on your home to build a new home office. This is the perfect time to renovate your life, business or otherwise.
 

You might be asking why now?

 
As it stands there are some big changes coming with regards to how finance works in Australia.
What happens if you take the JobKeeper payment and other government offerings, how will this affect your borrowing capacity?
There will be policy changes within lending for the next 1-2 years as lenders become more risk-averse and can’t/don’t want to take on the risk of lending money to you, especially if you lost money during the pandemic.
Lenders want to know how has this affected your profits, how will this affect your cash flow moving forward and what do your cash projections look like in 2021 and beyond? 

Property prices have already dropped 10% in less than a month which affects property valuations and what lenders will lend for a refinance.
There may also be an increase in how much of a deposit you need when buying new property, currently there are options at 5-10% but this could change to 15-30% as lenders will look to minimise exposure.
We won’t see the effects of this for two or more months as the unemployment rate rises, mortgage payment holidays are over and investors can’t afford the negative gearing due to rental reductions & increased vacancies rise.

So, what can you do?
 
If you are needing a loan to buy a home or get your finances in check now is the time!
We are seeing the lowest rates in history. You have time to get it done and property prices for valuations have not been affected much yet.
 
It’s important now, more than ever to use a broker so you don’t waste time and miss the opportunity waiting for your bank to get back to you. We have access to multiple excellent online and non-bank lenders that are open for business and are backed by the majors, so you still have the security of the bigger banks without the premium and frustrations. 

The GOOD news is, this too shall pass.
History will repeat itself as seen in years past there are always huge gains after huge losses. There will be positive changes to shape a new world for us and for our children.
 
If you’re a business owner you may be pivoting to an all online program or adding a new income stream that will carry on when normality returns.
Maybe this is the push you needed for a sea change, leaving what you know so well behind.

For me, this is a time to revaluate my core beliefs and what makes a happy day today! What I know for sure, I love helping people get what they need from the banks and the Prosper team offer a sense of ease though the process.
I’m truly enjoying time spent with my family, not just being around them but actually being connected to them, not distracted by the day to day grind. 
 
I hope this is received well, after all its just my opinion of what will transpire in the coming months, no one can accurately predict how lending will look 6 months from now or 2 years from now but I will say that there are a large portion of people that live week to week and there is a big percentage that has not been paid for 6 weeks now this will have a lasting impact on our economy.
 
If my team or I can help you in anyway please feel free to reach out there are no silly questions and no problem big or small we can’t handle. 
 
Stay safe
 
Rory