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'I believe there is going to be a crisis', says non-bank

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Australian Broker | 23 Oct 2015, 08:00 AM Agree 0
The chief executive of large non-bank lender says the market could be heading towards an off-the-plan settlement crisis
  • David V in Qld | 23 Oct 2015, 09:01 AM Agree 0
    Couldn't agree more.
  • Regional Broker | 23 Oct 2015, 09:12 AM Agree 0
    What is being described here IS NOT a credit squeeze, it is a warning about a small sector of the market.

    This has happened before and lenders, brokers and investors are all slow to learn.

    As for the Chinese investment market, in real terms how large is it? Really for a player like this bank, they have already made a decision not to lend in the Chinese investment market, good on them!
  • Broker | 23 Oct 2015, 09:44 AM Agree 0
    Agree 100% - all bought on by changes to credit policies.

  • Paul | 23 Oct 2015, 09:59 AM Agree 0
    APRA's moves will result in a credit crisis. The restrictions being imposed on lenders have resulted in a rise in interest rates, a restriction in access to credit for local buyers and a slowdown in regional areas. APRA are progressively clearing the field for foreign buyers and pumping up the 2 markets they wanted to cool.
  • Tim H | 23 Oct 2015, 10:10 AM Agree 0
    The problem with the current changes around investment lending and interest only loans is that every investor and every investment property is being tarred with the same brush when the reality is there are many diverse markets. In Sydney we have the inner city, inner west, Concord region and many others that all currently have off the plan projects coming to completion and the comments in articles such as these imply all should be treated the same.

    A unit complex with 50 plus units in one block at Rhodes is considerably different to a high end 8 unit complex on the beaches yet as both are Off the Plan lenders are making similar comments about both and placing similar restrictions on both.

    What this needs is a lender willing to look past these comments and take a more realistic approach.
  • SEQ Broker | 23 Oct 2015, 10:20 AM Agree 0
    From what I have personally seen, the Chinese have cash. Lends are based on the amount of interest the client wants to pay not deposits. So yeah, APRA has squeezed the Aussie investor but not the Chinese / Asian. Again, shot them selves in the back of their own head..good aim APRA.
  • Labrynth | 23 Oct 2015, 02:18 PM Agree 0
    Wait till banks start baring entire postcodes. Where you need minimum 20% deposit but they instruct valuers to value the property on it being sold within 1 month and giving a heavy weight to rental yield which is usually always crap. This brings the valuation down every time which means the deposit needed is always more like 25%-30%.
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