Your days going well. You’ve had a coffee. Chatted at a water cooler.
Dealt with your emails.
Then you manage a simple admin task – transferring some money from one account to another.
A few seconds later panic sets in.
You realise that you’ve accidentally transferred $6 Billion to the wrong person.
$6 Billion dollars.
That’s enough to build a new major airport. And buy a big aeroplane for it.
It’s not small change.
Now, that’s a tough conversation to have with your manager.
“Ah Boss may I have a word…we may have a little problem…”
Anyway, the bank got the money back from the client. Thankfully no bankers were hurt.
It does raise a lot of questions about the banking system.
As one banking big wig asked:
“How can a junior employee in a major bank pay the incredible sum of $6 billion without any controls whatsoever?”
Fair question? Another question is…
Why didn’t he sent the money to me? Think of the good I could do with it.
- The starving children I could feed…
- The trees I could plant…
- The luxury cars I could drive…
But I digress.
As interesting as this situation is…there’s a banking question more relevant to us investors.
How do we make sure we can keep getting finance for properties in today’s market?
There’s no doubt that the new APRA changes have made it harder to get loans in today’s market.
So you need to make sure you’ve got a clear plan for your property finance – and you’re not just thinking about financing your next deal…but the next 2 after that.
Because you don’t want to ‘max’ out your financing…and miss the next wave of boom suburbs….set to potentially double in price over the next 7 years.