Rental Guarantees. Are they tricks or a treat?

Hope you like that title, since we are coming up to Halloween. We have a promotion for our valued clients that gives them a rental guarantee when they purchase an investment property.

It’s one of those things where you look at the offer and go, is this too good to be true? What's the catch? So we thought we would take a moment to be transparent and explain to you how it works, and why we create these opportunities for our clients.

As you know 2020 is pretty crazy, so would even say scary. Things are not normal. But what you may not know is that the housing market is often volatile. There are always ups and downs. It is never normal. Most companies try to educate people on the property market that it's ‘safe as houses’ and they aren’t lying, but what people fail to differentiate is that the property market can be volatile, and investments are safe if you have a plan to weather any storm.

2020 is in the middle of the storm. House prices are still stable, but people are nervous about how the economy will behave over the next few months. Builders and developers need to sell down their projects. They were planned months, if not years ago. For them to do what they do best, they need to move “stock” so they can release their profits and move on to their next project. It’s in business. It's how all commerce works.

What is happening now?

We have lending at an all-time low. The banks are prepared to give people really good rates. Builders and Developers have stock they need to sell, so they can realise their investments.

People are a little nervous about people being able to pay rent. We aren’t hearing of any problems around this. People for the most part are living within their means and ability to cover their cost of living. The govt has done a great job in ensuring that most people have a level of security that keeps people feeling safe.

But there still are these little unknowns. People have all these positive thoughts like: ‘yes it is a great time to buy’. Yes, it all makes sense” Yes, I have always wanted to build a property portfolio” “yes, I can do this” but when making any choice in life, you want to minimize the risk. The two biggest concerns are “ what if I don’t find a tenant, and ‘what if I lose my job?’ Both extremely valid concerns. No one wants to feel the pressure of looking for cash to cover a mortgage on an investment property.

So we work out a rental guarantee with the developers that they cover any shortfall if for some reason your investment property isn’t rented out. It is a win/win. You get a high-performance investment property with the risk removed. They make a sale and are willing to cover any shortfall with their profits. They can move on but are willing to standby what they have sold, barring any risk that may happen. We love this approach because the developers have an incentive to finish everything to a high standard and create a beautiful investment property that is highly rentable.

At Property Lab, we believe that the best time to buy property was 5 years ago, and since we, unfortunately, aren’t time travellers, the next best time to buy is now. We are on a mission to help every day Aussies become financially independent. We are not afraid to put together ‘deals and packages’ that work for everyone involved. We are excellent at this and we aren’t going to hide the fact that we like innovative problem-solving. We are open with you from day one, heck even before day one. We want you to be aware of  the risks, we also want to show you how to reduce the risks, so you can feel excited and confident about the unknown future. Because people who are excited about the future make better choices.

Property investment isn’t spooky once you understand it. Rental guarantees are working out a solution that makes investing a treat. Knowing that we all want a win/win and being straight up about pulling together a package that works for everyone isn’t a trick. It's smart, it’s intelligent and it's giving you the ability to move forward, so you can take advantage of the opportunities this market has given us.

Back To All Posts

Your Pathway to Financial Freedom.


Connect With Us.