DO IT BECAUSE YOU CAN – Why Do Today What You Can Put Off Until Tomorrow?
I don’t believe most people really appreciate the unbelievable cost of “thinking about it”; “putting it off” or using the word we often use “PROCRASTINATING”.
We know a few people from around mid 2015 who were reasonably keen on investing in property but decided to “wait a couple of months”. They came back to talk to us a couple of months later and we had to inform them that if they wanted to go ahead now, they would have to move from their current lender and find a lender who would do a loan of just over 80% loan for them. The lending ‘rules’ changed and they could no longer do what they were able to do just four or five weeks earlier!
In a volatile market place, rules are constantly changing. Major banks have again just announced a tightening of borrowing criteria. We now find that an average income family on a combined income of $120,000 per year purchasing an investment property, will have to make do with up to $80,000 less from a major bank than they would have had a year ago. This sounds pretty bad but Mr & Mrs Average still have a pretty good borrowing capacity for investment if they act now.
To measure the impact of tougher bank lending policies, Homeloanexperts calculated the borrowing power or maximum loan amount for a couple earning $60,000 each, with two children and came up with some interesting comparisons across the four major banks.
Commonwealth Bank, for instance, could have lent $640,000 as a housing investment loan (Not owner-occupier)a year ago, compared with $560,000 now – an $80,000 reduction. Other major banks had similar reductions in lending capacity over the year.
The big question is “How much less may you be able to borrow if you procrastinate for another year?”
One of the many important reasons for taking action now at the beginning of 2016 is quite simply do it “BECAUSE YOU CAN!” It might be a completely different story in a few months time and you may have lost your opportunity for ever!
