Are you equipped to weather all seasons in 2021?

Congratulations – you survived the Covid-19 flash storm that engulfed 2020! But before the uncertainty and turbulence of 2020 dwindle into the recesses of our collective memory, stop to ask yourself what does the rest of 2021 hold for the mortgage and finance brokerage industry?

The residential property market, particularly on the Eastern seaboard, is ablaze.  Even seasoned agents are aghast at the prices being fetched. Whatever temporary halt the pandemic may have caused, it’s very clear the property market, fuelled by cheap money and low interest rates, is now making up for lost time, and then some.

The introduction of government stimulus packages like JobKeeper and JobSeeker coupled with the record low cash rate have re-instilled confidence in customers in both the retail and construction sectors, positively impacting SMEs. Suffice to say, your services are well and truly in demand as SMEs start to seek commercial credit once more and first home buyers flood into the market.

But, as we head towards the end of the financial year, there are important considerations on the horizon. How long until the RBA intervenes to deflate increasing asset price bubbles?  What will regulators do to cool the market? How much more refinancing activity can there be? Sure, a client on a historic 6% mortgage can easily be persuaded to refinance at 3%. But if a borrower on a 3% mortgage sees rates fall to 2%, is 1% enough to warrant the costs and aggravation of making the switch?

The adage of “making hay while the sun shines” has never been more appropriate. We are now in a summer blaze. If you need funds for your own business for purposes as diverse as hiring new staff or to cover operating costs or to digitise your business, getting your finances lined up early in the year will allow you to capitalise on a very benign credit environment and an abundance of generous Government guaranteed loan packages set to expire at the end of June. Lock in funding now to allow you to execute your vision for your brokerage before things start to slow.

Of course, grand plans require capital. If you’re currently strapped for cash that hampers your ambitions, it’s well worth researching funding options; a fixed term loan or a flexible loan facility can help refinance your practice, particularly when you can demonstrate a set of very rosy financials from the recent market exuberance. These loans can also assist by providing a buffer in case we again see a downturn. Having access to capital also creates a sense of security and allows you to be prepared in the event of a disaster. If the last year has taught us anything, it’s that a rainy-day fund never goes amiss in these uncertain times!

All in all, the financial forecast for the rest of 2021 currently looks sunny and if anything, a little too hot. Be prepared for a change in outlook – as we have learnt only recently from the Covid-storm, you need to be prepared for all seasons.

And if you need a partner to help you fund these opportunities, we would be happy to chat.

Whether you’re a mortgage broker, financial planner, rent roll business owner, accountant or other cashflow business, we can understand and support your specific business goals and needs.

Contact us

Suite 401, Level 4,
59-75 Grafton Street,
Bondi Junction NSW 2022

1300 139 003

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