A recent article in BRW made the claim that “the amount of credit, not just the price of it, is being more restricted”.. They explained this away due to the fact of
1. tightening valuations
2. bank’s stricter lending criteria
3. as global rates rose, the differential between Australian & these rates, reduces the attractiveness of Australian securitised mortgagesInterested to know, whether this tightening of credit avaliability is being experienced in the real world.
In the same edition, mention was made about Asian investors heading back to Hong Kong, Malaysia and Singapore as prics started increasing in these markets.
James
james,
i’m finding no probs with vals as the market evidence is plentiful, databases have caught up, and prices have flattened out.
i’ve also had some bank request additional info re ‘cash out’ purposes or line of credit applications for open policy lending – 12 months ago this wasn’t required.
PMI mortgage insurance has capped ‘cash outs’ to $150k, previously these where considerably higher. So yes, some policies have had categorically tightenned, others may be ‘re’ applying existing policy.
cheers
brahms
If you don’t ask, the answer is no!!
brahms, by ‘cash out’ do you mean if I were to refinance a property to put cash in my pocket for no particular reason?
Cheers
Melbasically yes, for instance you may refinance up to 80% on an investment property when the actual debt may only be 65%-the surplus you wish to park for future inv use, ie. deposit plus costs on next ip purchase. Either as an LOC or left in the loan to ‘redraw’ as required.
once the money is there, what you do with it is up to you as a consenting adult…. (‘no particular reason’ is probably not what i’d suggest as precise wording – rather ‘future investment or effecting cosmetic refurbishment etc etc.’)
cheers
brahms
If you don’t ask, the answer is no!!
As far as the thing about investors return back to HK, Singapore etc… that is complete crap…
Hong Kong – Picking up, but too many cases still of negative equity for many owners there….. in many cases, people have just walked…. The only reason for a pickup there now, is the cashed up citizens of Mainland China buying property there….. and these people are not investing in places like Australian anyway….
Singapore– Housing market is like the rest of the econimy, DOWN THE TOILET….. I should know, I live here…. Even the unit I rent, has dropped in value from 1.3M to 850K…… People are either stuck, or unwilling to invest in property here because it is overpriced and the market is tightly controlled by the government…..
Malaysia – Thanks, but no thanks…. prices are reasonable, but the quality of homes is TERRIBLE……. crime rates are high….. corruption is still rife…..
Ok…. thats my little Asian update if anyone was interested !!! [biggrin]
Scott
Pelican Investments
http://www.pelican-invest.comHi everyone,
I have mortgages on 4x properties (3x IP and 1x owner occupied). I have about $500k in total equity but my servicability is low because my wife and I have just gone to 1x wage while she is on maternity leave. Any suggestions on how I could borrow for a CFP property? Do any lenders take NZ IP income into account because the bank I am with does not. I would rather not have to change any of my existing IP loans because they are at low fixed rates. Any suggestions?Hi Todd
Look at lo doc / no doc and asset lends.
I suggest talking to a broker experienced in those types of loans.Keep smiling
Felicity
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