Various surveys indicate that residential house values have dropped by around 5% over the course of the last year, and that activity in the market is very subdued. Our view is that we are now well into the negative phase of the house price cycle, and believe that prices will start to bottom out by the early part of next year. So perhaps now is the time for investors to start looking for some bargains?
The good news is that with competition still fierce between lenders, many short term property lenders have maintained their rates and not increased them in line with base rate. So if you need to complete a purchase quickly to secures a low price, there are many out there who will release funds within a matter of a few weeks on an interest only facility starting at around 9% per annum. This then provides you with the time to upgrade or develop the property prior to refinance onto a more main stream long term loan.
Needless to say, if you are in the market to purchase some of the bargains that will undoubtedly be appearing, please talk to us at Key Commercial Finance. We have many years of experience in the Real estate sector, and whole of market access to ensure the best possible terms with which to support your plans.