APRA Appears to have pulled investors out of the market

I still can't getvover Tokyo being there between Mumbai and Istanbul. Wow London really has gone crackerjacks. Left the GFC blues behind for sure.

 

Not sure I agree with your first point. Foreigners will be comparing like for like, not struggle st Druitt vs the better parts of Singapore/HK etc...in a like for like comparison, yep, Sydney/mel are cheap.
You are probably correct in the second point. Will be interesting to see what happens going forward- do they still go all in Sydney/mel or look at other cities like Brisbane etc or something/somewhere else ..My money is on the prestige in Sydney and mel continuing to do well, and the mid range doing well in the other cities.

 

London never slowed down during the GFC. Prime property was seen as a safe haven, and so was driven up largely by foreign buyers, particularly from countries that were hardest hit.

Despite two or three recessions, riots and a collapse in the banking sector, a friend's small house pretty much doubled in value in that time, and he doesn't live in a prime neighbourhood.

An additional wrinkle was non-domiciled status. A foreign national living in the UK for less than a certain number of days is only taxed on what is earned in the country. Worldwide income is ignored. That means there are a number of billionaires resident in London, who effectively use it as a tax haven. The perk is being tightened up, but there's resistance from the 116,000 or so who benefit...

 

I think London may have wobbled a bit. But yes the recovery was quick much like Sydney.

 

APRA and most importantly the banks are not particularly genuine in the application of the penalty interest on Interest Only loans to investors. If they were genuine, they would try to slow the Sydney and perhaps Melbourne markets. However, cities like Adelaide and Hobart and the other slow markets need to be incentivised and not penalised. Blatant profiteering is my guess

 

Here comes the first warning of Part 2 from APRA.... driven by the BASEL effect. By 2018 APRA will be asking banks to transition a much larger number of their RMBS "bonds" from short term to long term funding arrangements. This will drive up funding costs on those funds by @ 60-65bpts.
http://www.smh.com.au/business/bank...wholesale-debt-addiction-20150916-gjnqha.html