The fact is that the investment property market can be a very tricky place, and it’s very much so right now. Banks are apparently scared of the highly variable investment property market’s moves. They’re lending to residential borrowers, but not to investors looking for income generating properties.
That’s creating a run on other types of borrowing. Property investment is a very high capital business. The money has to come from somewhere, after all. Where the banks won’t play, other lenders are increasingly being called in to fill the void. This is effectively rewriting the market rulebook, and it may have future consequences for the banks as other credit providers move in to this gigantic sector.
The current alternatives to the banks are obviously the non-bank lenders, but this is now including a range of higher-bracket lenders in the basic personal loans and other markets, particularly online. Opinions vary, a lot, about the quality of these lenders, but comparisons are actually starting to look good for the non-bank lenders as a result of added services, drawing facilities and other package features.
If you’re looking for a property loan, check these lenders out. You may or may not like what you see, but you will see viable options.
Source: http://www.thenichereport.com/blog/bank-loans-on-investment-properties-are-scarce/
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