1. Private residential property investors used to have a 120-day timeframe to comply with the Healthy Homes Standards when they purchased a new property that wasn’t up to standard. When I recently purchased a rental property from a homeowner, I found out this no longer applied and that the property must comply with the standards by 1st July 2025. This may become a real problem for some property investors trying to get the necessary work done the closer we get to that date. It may also mean that property investors will only purchase properties that are fully compliant, making this a condition in the sale and purchase agreement.

2. Most people want to access some or all of the sale proceeds when they sell a property. Care needs to be taken to ensure you don’t fall into what’s called the “one bank” trap, which I recently read about and have experienced myself. Prior to releasing any funds, banks will reassess your lending position following the sale to determine if you can service the remaining lending. If you’re not able to service that remaining lending, they will apply the sale proceeds towards the remaining loans. This can often be in the week leading up to settlement, so you can find yourself at the mercy of the bank.

3. So how can you avoid getting caught up in the “one bank” trap? One way could be by spreading your lending over more than one bank. If you have a lot of equity in your properties, the bank may also be able to release a property that’s used for security. Another way may be to use non-bank lenders. Your bank may not be working in your best interests, so it’s important to work closely with a mortgage broker who can put a plan in place early.

Please note this content is for informational purposes only and does not constitute financial advice.