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Peter Benson

The RBA concluded that “Recent data do not show signs of a bubble.” in a research discussion paper titled Is Housing Overvalued? (June 2014).

Last week’s RBA talk about credit controls, the so called macro-prudential, is a way of retaining low interest rates and maintaining overall sensible growth in housing prices.   

The RBA stance flags the economy needs low interest rates to promote economic growth. The RBA does not want to use of higher interest rates as a way to subdue property markets given that housing construction, an anticipated engine for economic growth in a post mining-boom world, has started to pick up. Lower interest rates also help exporter growth by keeping the Australian dollar at a lower level.

Commercial lending is a legitimate way to boost income returns without the need to invest directly in property. The Credit Connect Select Fund gives the investor s the ability to earn a higher income, select a range of commercial loans and have the first mortgage protection.

Tuesday, 28 January 2014 15:20

What is a Mortgage Default?

We were recently asked what a mortgage default is, so we thought it would relevant to discuss the ins- and-outs and exactly what is involved and how it impacts the borrower.

If you lend money to a borrower who offers you a first mortgage on their property, your security is a registered first mortgage. If the borrower defaults under the mortgage and does not meet the interest payments to you, the borrower is then deemed to be in default of the loan.

Mortgage default is a situation when someone is not able to pay their mortgage and as a consequence the loan will be considered “in default,” meaning the company or person who holds the mortgage can take control of that property. 

Tuesday, 21 January 2014 14:30

If It Sounds Too Good To Be True

Ever heard the saying "It sounds too good to be true". It really is a valid point, especially in the finance industry.

When we hear of returns especially in this current market being offered from 15-30% the "alarm bells" should start ringing and big warning lights should flash all around the article your reading which offers such a return. There are numerous schemes that offer these returns, which are seeking your hard earned pennies to invest in or should we say possibly lose your money in. One thing you need to clearly identify and investigate is where specifically where your funds are being invested.

Monday, 25 November 2013 11:37

The Bubble Muddle

On the 4th of November 2013 the Australian Bureau of Statistics (ABS) released the price change index for Australia’s eight capital cities to show that weighted average prices had increased by 1.9% in September 2013 quarter. 

The ABS chart below shows that recent increases have followed a period of decreases, statistics that hardly accords with the bubble talk of many commentators, which raises the question of why such commentary persists when Australia’s property market of the past decade appears to have responded to policy intentions set by the Reserve Bank of Australia (RBA) and the Australian Regulatory and Prudential Authority (APRA). 

Monday, 18 November 2013 13:52

Housing Approvals Up – September 2013

While the debate about whether or not there’s a housing shortage continues amongst the property market elite and financial industry experts, one thing is clear to everyday Australians - it’s hard to get the property you want, where you want it and at a fair price. 

 A decade of lagging construction and strong population growth has only served to increase competition for a desirable home. 

Wednesday, 06 November 2013 14:56

RBA Leaves Rates Unchanged

The Reserve Bank of Australia (RBA) which meets in the first Tuesday of every month, left interest rates unchanged at 2.50% stating amongst other matters that “Housing and equity markets have strengthened further, trends which should in time be supportive of investment”. 

Nebo Village We speak to a diverse range of property developers each week, many frustrated that their extremely viable projects cannot get funding through traditional banking channels.  We know that while the mining boom and economy in general may have slowed over the past 12 months, there are still some great opportunities out there. It’s our job to connect feasible developments with private lenders to get these projects off the ground. 

Nebo Village is a great example of a viable project, with all the numbers adding up, which still could not secure bank funding.  While the developer could clearly identify the viability of the project, it wouldn’t have got off the ground with a sole reliance on mainstream banks for funding. Instead, funding was secured for Nebo Village through us, Credit Connect Capital, using private lenders.

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