NO MORE FINANCE
If you want to get a home loan or refinance – sorry to break it to you, but, it’s too late.
But, that doesn’t mean you should forget about your property goals over Christmas.
On the contrary, now is the perfect time to reassess last year’s efforts and make plans for the future so you can start 2020 strong.
What – no more finance?
Yes, that’s right. From about mid-December to mid-January banks put on skeleton staff to cover business around the Christmas break.
In the lead up to this, staff often undergo a “scramble for settlement” whereby they try and wrap up existing loan applications so they can wrap up their Christmas presents without undue stress.
“The banks are more focused on people that have got deals in process or in play,” says Nathan Birch of Binvested.
“You can still get equity, but you are running into a busy season at the back end.”
But, how am I supposed to buy property?
According to Nathan, it is still possible to buy property during this time of the year.
In fact, he favours the festive season as a time to buy because of its perfect storm of potential. That is, vendors and agents are desperate to sell – but there are fewer buyers in the market.
But, if you don’t have finance ready by now, then you probably won’t be able to take advantage of the many great deals that Nathan could whip up for you.
I can’t buy, so … now what?
Nathan says that this time of the year is the best time to reflect on what you are doing and where you are going. He calls this “recalibration”, and he says it is an important yearly step that anyone looking to improve their situation should take.
Here are some things he thinks we can focus on.
Our current goals.
If you didn’t achieve this year’s goals, ask yourself why. It may be time to reassess the actions you are taking in life and figure out if they are helping you, or stopping you, on your quest towards financial freedom.
Set new goals for 2020 and figure out the sort of mindset you need to adopt to make this happen. Remember, there is nothing wrong with you, it is your actions and thoughts that shape your destiny. A simple change in what you believe and how you see the world could help you change your future for the better.
Thoughts translate into actions, which then cause reactions. Think about it. If you wish you could save more money, but believe it is impossible, you are more likely to go and spend the little that you have on doodads in order to cheer you up.
But, if you believe it is possible, and act accordingly, you will restrict your spending so that you can save more.
Buying and selling aren’t the only options we have in the world of wealth building. Nathan says, he recently put storage containers on his property to rent out to others in a bid to make more money on the side.
There could be numerous things you could change in order to improve your situation – having someone look at your portfolio to identify strengths and weaknesses is the first crucial step.
How are your rents? Have you reviewed them recently? It may be possible to increase them in line with market trends. A better cashflow could mean a better servicing position in 2020.
A qualified asset manager is the best person to have on board when it comes to maximising your gains. They are in it for the long term to ensure you get the most out of your investment income.
It is very important to make sure we are adequately insured and that we are getting the best bang for our buck with the policies we take out.
An independent financial advisor can help you cut through all the technical jargon of the PDS (Product Disclosure Statements) to help you figure out which insurance is the best for you.
Our team of professionals.
We are only as good as the people around us – which means if your accountant or broker isn’t up to scratch, then they could be holding you back.
Nathan says there can come a time when you outgrow your professionals. For instance, you may have a really nice accountant who has looked after your whole family for a decade – but, they may not be very knowledgeable when it comes to building property portfolios. In this case, the accountant wouldn’t be able to set you up in the best way, and you may suffer financially.
Nathan says, building wealth isn’t all about buying properties. It is also about streamlining your position. Having someone look at all the different aspects of your financial health is crucial to ensure you have the best chance at success.
It is also important to ask ourselves where we want to be and where we are heading. Reverse engineering can help to identify what options we have available and how we can map out a plan of attack to achieve our goals.
Now that 2020 is upon us, it’s important to act now and secure a spot with an expert who can help. Nathan and the team are offering free portfolio reviews to those who need a financial health check – but there are only a few spots left before the Christmas break, so don’t delay.