As a property investor or first-time home buyer, navigating the complexities of the lending industry can be overwhelming. In a recent episode of the She Renovates podcast, Bernadette Janson spoke with Louise Lucas, a finance and property expert, who shared valuable insights and strategies to help listeners thrive in the interest rate roller coaster, as well as the current state of the housing market in Ausralia.
Lucas has been in the broking industry since 2007, and she leads a team of three brokers in Melbourne who help clients all over Australia, with a five-person offshore team that supports the back-office work.
She acknowledges the complexity of current lending rules and advises listeners to research lenders who assess rental income at higher percentages to maximize their borrowing power.
With her extensive knowledge and contacts in the banking industry, Louise provides valuable insights on the recent interest rate rise and advises listeners to seek loans with a buffer, which can help alleviate financial stress and provide a safety net in case of emergencies.
For those seeking loans for renovation projects, Louise recommends using rental statements as evidence of income to boost their borrowing power. She also discusses borrowing with friends or family members and the importance of structuring investment partnerships.
One strategy that stands out is the reverse mortgage strategy for renovating retirement. This strategy involves taking out a reverse mortgage on a property to fund renovations and increase the value of the property, which can then be sold to repay the mortgage or left as an inheritance.
In addition to having a buffer account for emergencies, Louise recommends strategies to deal with negatively geared properties, such as converting to an interest-only loan or seeking advice from an accountant.
Overall, Louise’s expertise and insights provide valuable guidance for anyone looking to navigate the interest rate roller coaster and thrive in the lending industry.
Watch the Episode on Video:
EPISODE HIGHLIGHTS:
- 00:39 Meet Louise Lucas
- 02:23 Supporting Wonder Woman financing
- 03:33 The complexity of current lending rules
- 04:00 Know which lenders are assessing rental income at higher percentages
- 06:32 Louise’s knowledge and contacts in the banking industry
- 07:00 Recent interest rate rise and Louise’s Insights
- 09:15 Advice for those seeking loans
- 11:00 Using rental statements to help get loans for renovation projects
- 12:55 Discussion of the buffer and its impact on mortgage payments
- 16:51 Borrowing with friends or family members
- 18:45 Structuring investment partnership
- 20:37 The reverse mortgage strategy for renovating retirement
- 25:23 Having a buffer account for emergencies
- 27:00 Strategies to deal with negatively geared properties
“So, if you are going for a loan at the moment, or if you anticipate in the next month or so, go this fortnight before that raise because you'll actually be assessed at a lower rate. So you need to understand that if you want to borrow money and you think you're a bit too close, get in sooner rather than later.”
Resources
Louise Lucas – Website
https://propertyed.com.au
The School Of Renovating
https://www.theschoolofrenovating.com
She Renovates Podcast
https://www.theschoolofrenovating.com/podcasts-page/
