Australian Lending Markets
Private Mortgages, Solicitor Funding, Equity Participations
(by Oliver Banovec)
I have been involved in Australia in Private Mortgages since 1999 with the view to expand the market to similar levels to the United States. Private Funding has been popular in Australia predominantly due to the relatively high levels of returns.
Many “unsophisticated” mum and dad investor have been trying to get into this niche market, especially into the lucrative and high risk end of equitable mortgages, where return of up to 132% p.a. are being achieved. The high levels of risks associated with such investments are often disregarded by investors and only once a significant problem has occurred, consideration is given to this aspect.
Often at that point in time it is too late. Specialist Mortgages Solicitors can only try and do there best in recovering little or no money from the distressed borrowers. Investors at that point are often also distressed due to the lack of interest returns and considerable recovery costs.
I continue to see an increase in demand for such high risky investment with many more players entering this market segment.
Together with my partners we have designed a platform, where interested investor can register there interest with us at our lenders register. Once lending opportunities are identified we work closely with borrower and investor to ensure both sides benefit.
Specialist mortgage documents are utilised to protect against borrower defaults. Only lenders with experience in this particular market segment are accepted to the register ensuring that proper consideration is given to levels of risk.
CSL Money is a market leader in Private Mortgages and Solicitor Funding in Australia.
