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APRA changes!!

Discussion in 'Property Finance' started by Be Developer, 23rd Jul, 2015.

?

Are you affected by APRA changes?

  1. Yes

    11 vote(s)
    52.4%
  2. No

    6 vote(s)
    28.6%
  3. Not sure

    4 vote(s)
    19.0%
Multiple votes are allowed.
  1. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    I know there is lot of noise around APRA changes.

    Somehow, it hasn't affected us personally as yet.

    I can think of three reasons

    • We sold what we needed to and brought home large chunk of money. Re invested in growing assets.
    • Having a gun broker. Thanks @Shahin_Afarin. Constantly reviewing portfolio,Inc equity release when due, fix loans, kept variable for flexibility
    • Not any consumable debt.(okay $1000 credit card with loan package)

    Feel free to share your view!
     
  2. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
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    Posts:
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    Location:
    33°41'24.7"S 150°55'34.3"E
    I have deposit cash ready to use so don't need to tap into equity yet. I'll soon be going in for my next finance application. It will be very interesting to see how I go.

    I'm thinking I should use a company/trust for my next purchase but have no idea how that will compare servicability-wise to buying an IP as an individual.
     
  3. sash

    sash Well-Known Member

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    Posts:
    3,214
    Location:
    Sydney
    APRA changes = Opportunity! ;)
     
    Redom likes this.
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,091
    Location:
    Melbourne, Nationwide
    If you have to borrow money for your next IP purchase, you've been affected by the APRA changes.

    It may be affordability limits, pricing, LVRs, future flexibility. It will have an effect.
     
    Last edited: 24th Jul, 2015
  5. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    853
    Location:
    Sydney (West) and Canberra
    Broker perspective - this is definitely an opportunity. A big one. Being proactive about upcoming changes and preparing for the changes definitely helps (so does having a gun broker like Shahin!). All of the 'tells' on whats coming is there and open.

    I've spoken to a couple of the better investment brokers here, there's probably a 100% increase in volumes over the next few months, with the increase mainly coming from 'urgent, i'm stuffed' scenarios. 2-3 week settlement deals are coming in thick and fast (some pushed back as some of the legal guys have been noting, but they're still being funded rather than having contracts crash altogether). OTP settlement deals are a common one, as plenty from those that haven't used brokers in the past are now forced to as their individual banks can no longer service them with the policy changes.

    Reality is, like i've said in other posts, your ability to get funding (borrowing cap) shouldn't be a 'pre APRA', 'post APRA' equation just yet. There's lenders that have filled the gaps. Utilising them can keep you growing your portfolio. In the majority of cases, the changes to date shouldn't but a brick wall in front of you.

    Thats not to say everyone isn't effected in some way or another (e.g. pricing, inefficiency, uncertainty).

    Cheers,
    Redom
     
    Toon and mcarthur like this.
  6. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    Hahaha!

    other side of coin, Plenty claw backs...