As we enter February 2025, N1 Holdings has observed a continuing shift in the private capital landscape that they started talking about last year. Increased liquidity is driving down the cost of funds, and N1 Holdings can see banks are already locking in lower fixed rates in anticipation of the RBA’s February 18th meeting. Notably, the influx of capital into private lending has pushed funding costs lower even ahead of “anticipation” of rate decreases, which may or may not happen.
Several recent trends have caught N1 holdings’s attention:
1. Lower cost of funds: While headline rates are decreasing, it’s crucial to consider the total cost of the loan, including any hidden fees.
2. Increased commercial property activity: N1 Holdings has seen a spike in purchases of warehouses and retail shops, with more activity in the pipeline.
3. Rising demand for equity release and prestige property purchases: Enquiries are increasing, for instance in areas like Sydney’s Eastern Suburbs, Melbourne’s Toorak and South Yarra, and Perth’s Claremont, etc.
If you have any questions, refer to your PSM.