RBA sounds the alarm over off-the-plan properties

By October 19, 2015 No Comments

Have you bought a property off-the-plan or are you looking at property that is not yet complete?  Read on;

The Reserve Bank of Australia has warned that settlement risk on apartments off-the-plan may have increased as a direct result of the stricter criteria that the banks are now applying to investor housing loans.

Some banks have expressed concern about this settlement risk on pre-sold apartments, particularly in light of the recent regulatory measures aimed at moderating investor demand, they they have also noted that pre-sale defaults have been very limited so far.

The Reserve Bank said a number of banks have already responded to this, and the risk of oversupply more generally, by tightening lending standards to apartment developers in the more “at-risk” areas.

If you want to know more about all the changes to investor lending and how it affects you or maybe you just want a second opinion on your current home loan, call our office today on (02) 9527 2230.

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