Viking Market Overview
Market News - January to March 2021
Along with ushering in of the New Year we got to see an unexpected change in the US Government which seemed to trigger, at least in overseas markets anyway, a bit of a renewed confidence in the wider investment markets and a change in investment sentiment back in to some of the more mainstream and traditional Dow Jones top 50 companies.
With the incumbent government signaling that their important Jobkeeper Supplement would remain in place until the end of March, early April, and with the COVID-19 numbers well and truly back in check, a lot Australian Real Property Investors decided it was now time to start 'buying up residential properties' across Australia, because they must have figured that the low-interest rate environment as well as the all important lower than ever before RBA Cash Rate could only last for so long.
Unfortunately this situation has created a bit of a 'back-log of finance applications' and this remains the case up until Quarter's end, with several of our clients having had to experience some hefty delays with the processing of their residential finance applications, notwithstanding that some of our more active Private Lenders are still frantically offering up credit to Business Borrowers at record low interest rates, in order to try to stimulate some commercial lending activity which has been lacking for some time.
This is such a weird paradigm, on the one hand we have bank loans from 1.79% which are taking 4 - 6 weeks to process and an impending property bubble and on the other hand we have seen little or no commercial lending activities in the pipeline and so we have a case where construction & development loans are being offered out at a base rate from 5% p/a and residential stock re-financing rates are also being offered for not much more. Go figure?
I really don't know if I will ever understand the mechanics behind the property investment and related finance markets ? ... however, in saying this, I doubt if there has ever been a better time than NOW to do an inner-city property development or buy a residential home or investment property ! So happy hunting everyone !
Market News - April to June 2021