AFR: Scott Morrison eases limits on foreign buyers as apartment glut looms

Scott Morrison eases limits on foreign buyers as apartment glut looms

It feels like the treasurer is unsure of what to do.

Where can we find statistics on default rates?

Thanks.

 

I'm confused....Feds are looking to relax l
foreign investment controls to keep prices high or prevent prices falling whilst the state is wanting to remove negative to get investors out of the market and reduce competition with FHB.

Does the problem lie with supply or demand?

 

I think gov't simply does not know what to do. This is another knee-jerk reaction, which does not look well thought of.

 

12 August
not sure you'll probably just have to google "default rates banks"

More Australians unable to make mortgage payments: Westpac
[Westpac has reported a rise in the number of Australians who cannot keep up with their mortgage payments, as well as more stressed assets on its business loans.

The bank said the financial squeeze had hit Western Australia, South Australia and Queensland, in regions affected by the mining slowdown.

Earlier in the week the country's biggest home loan provider also reported a rise in debt defaults.]

the other way is to download the quarterly reports of the listed banks from the ASX and read through on their default rates.

 

I'm on the fence.

I think we need to make sure we are being prudent and not setting up a market for foreign gamblers who are just going to start buying & selling OTP contacts recklessly while the market is hot.
I would normally just say let the buyer fail to settle and have the developer deal with it, but obviously on large developments that could create an issue. At the very least the Government needs to collect 2 sets of stamp duty and transfer would have to happen prior to settlement.

I do think the Coalition needs to tread carefully on housing for their own political sake. I don't think local people could really care less about foreigners getting burnt, so don't really want to be seen to be doing them to many favours.

 

Without reading that article I note that the apartment glut problem which is obviously real, should to a reasonable extent work it's way out of the system given enough time and thorough main stream media coverage by now, markets are good at avoiding the worst negative and positive mid-range events like that and pricing in necessary adjustments..... Though Hi-rise Harry (Triguboff) on the front page of the Australian's business section saying there is no bubble has to make everybody nervous

We noticed the strong demand from our ex-pat clients who are all citizens just vanish with the change in credit rules over the last year, these things really do have an impact, not much happening there compared with the last few years, so there's plenty of scope to turn on the tap again perhaps.

 

This is what he said in August...

http://www.theaustralian.com.au/bus...s/news-story/304c78e79c5a38af239ec3a1d61e0922
[A wave of sites is on the market as funding for apartment developments dries up, according to Meriton Group founder Harry Triguboff.
“I have never seen so many development sites for sale, but prices are not dropping much, maybe 10 per cent,” Mr Triguboff said.
“In the old days they would all be in receivership, but now interest rates are very low, so the banks are carrying them.”]

In other words, Harry is actually saying should interest rates increase, we are looking at widespread developer defaults and a banking crisis possibly ;D