Are We Going To See The Return Of The Non-Bank Lenders in 2010?
2010 is going to see a change in lending from what has been experienced in the past 18 months. It is predicted that non-bank lenders, in other words, private lenders will return to the market and provide funds for borrowers, namely property investors, who are prepared to sign fixed interest loans for the long term and who pay interest and principal.
This type of investor is looking for the ‘buy and hold’ property investor who will purchase a property and hold for a length of time, probably borrowing again on it as the equity increases.
Short term property investment finance with private lenders.
Sometimes private lenders do not necessarily want principal repaid but are prepared to leave the principal with the borrower. This lender is the ideal lender for those who want to renovate and sell, or buy at a low price and sell in a few years.
This type of lending means that the lender will leave the money with the borrower during the resale process as the borrower intends to buy again and repeat the process. The private lender has the advantage of a set income from the interest and the borrower has the assurance of being able to have finance for the next project.
For more information on this topic visit http://www.realestate.com.au/doc/Resources/News/nonbank-lenders-return.htm
Filed Under: Investment Strategies
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