Private lenders can help investors take advantage of Australia’s residential property growth

In its Residential Property Prospects, 2011 to 2014 report, BIS Shrapnel predicts stable housing prices and moderate price increases over the next two years. This presents a golden opportunity for real estate investors to see high returns, that is, if they can get the financing. Private lenders help property investors get the financing they need in an increasingly tight credit market.

The report predicts that “Strengthening employment growth – the unemployment rate is forecast to fall below four per cent in 2013 – will also see net overseas migration inflows turn around, and the underlying demand for new dwellings begin to rise. With new dwelling starts currently declining, the corresponding fall in completions means the underlying deficiency of dwellings nationally will increase.”

Private lenders to play a pivotal role in the residential property market.

Private lenders are set to play an important role in this predicted economic growth. Because the increasing restriction of capital by traditional banking institutions, private lenders are becoming more and more attractive to real estate investors.

Smart investors will see Australia’s predicted economic growth as an opportunity to substantially increase their personal wealth. They will not allow an increasingly restrictive credit market to stop them from doing so and are taking advantage of the financing offered by private lenders.

How do private lenders provide products to the marketplace?

Private lenders do not rely on the Reserve Bank of Australia for capital. Instead, private lenders loan money from private individuals or organizations who want to invest their money. Because private lenders do not take money from Australia’s central bank, they are not subject to all regulation imposed by the government. Private lenders often have less strict requirements and less red tape than traditional banks, making it easier for investors to get the necessary capital.

Because private lenders use equity based requirements for loans, rather than credit ratings, when a real estate investor finds a property they want to invest in, all they have to do is show their private lender that the property is a good deal, and the financing is virtually guaranteed.

If you are a real estate investor or are interested in real estate investing, then you should consider talking to a private lender. Because private lenders are not as concerned with credit ratings as the banks, private lenders are perfect if you’re just getting started in real estate or have less than perfect credit.

Don’t let a tight credit market prevent you from making a fortune in real estate over the next two years. Australia’s future economic growth will help many smart investors reach their financial goals. Talk to a private lender and see what options are available. You might find that private lenders are the perfect option for you.