Rising risk of credit crunch for property investors

Investors have been warned to expect a "prolonged period of crimped bank profits” following the recent release of the interim report, from the banking royal commission.

Many analysts are warning of the prospect of stricter expense verification for borrowers and a raft of new obligations, for investors and small to medium businesses.

According to CoreLogic figures released on Monday the 2nd October, national house prices are now 2.7 per cent below the peak, which was this time last year

Co-Founder of RentMaster Pty Ltd (RealRenta) Jason Gwerder says that "in this type of market, investors cannot sustain capital growth on their own.

They have to find other ways to make property investing worth their while.

One of the ways is to stop handing over their investment income, to property managers”.

Recently there has been a surge of disruptive players in the real estate space, that are helping customers slash the traditional costs of buying, selling, advertising and managing their properties.

Platforms like RealRenta, automate the complete process of property management, making the traditional costly management model, almost redundant.

Jason says, " as a property investor with a successful portfolio, I wanted to give my fellow Australians a chance to get into the investment market, without having to hand over a large proportion of their rental revenue to a property manager.

I had property managers for years and I struggled to see the value they were contributing, with respect to the massive fees I was being charged”.

RealRenta is very effective for investors who want to slash costs and are happy to self-manage and if they ever do need an intermediary, RealRenta can step in when requested and property investors only ever pay for services that they actually use.



 Source: https://www.afr.com/business/banking-and-finance/financial-services/royal-commission-interim-report-risk-of-a-credit-crunch-is-real-and-rising-20180930-h162i5


Marlene Liontis
Tuesday, 2 October 2018

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