Private lending an attractive onshore investment alternative as European debt crisis looms

Private lending vs share market in the global economy

The global financial crisis of 2008 has received a lot of attention as the worldwide community felt the aftershocks. The resourced boom has largely been credited with sheltering the Australian economy from the impacts of global recession. However, there are a number of obstacles on Australia’s financial horizon due to our financial ties with Europe as the debt crisis continues. With the continuing downturn of the stock market, cashed up investors are understandably hesitant to turn to the stock market for sustainable returns in the short to mid term.

Many investors may not have considered that private lending at this time presents a viable alternative to the stock market. Historically, private lending arrangements have often been risky. But with global uncertainty over fiscal policy in Europe and a shift towards more local forms of investment, private lending is looking much more appealing.

What makes private lending differ to a traditional investment

The key factor that make private lending desirable in today’s climate include the need to make fast and stable returns on the money you are lending in the short to medium term. For some investors, this may represent a break from the volatility of today’s stock market; for others, it represents a long-term opportunity as part of a portfolio of investments. Private lending gives you flexible options ensuring a high short term return with as much risk mitigation and legal protection as possible. Your money is secured via a mortgage over the property; the same legal process used by the banks.

Now’s the time to try investment in private mortgages!

With forecasts of a possible interest rate rise on the horizon, it is a good time to consider private lending as you can enjoy the benefits that come with increased interest rates. This in tandem with the strengthening Australian Dollar shows very strong potential for private lending.

Investing in local growth and industry has always been far more economically beneficial for the Australian economy than an offshore investment. Private lending gives you the opportunity to do this in addition to providing a shelter from the European debt crisis. With flexible lending options and personalized service, EasySettle Finance can show you how private lending can be so easy!