Brisbane CBD Units - Suncorp

Discussion in 'Loans & Mortgage Brokers' started by Corey Batt, 16th Oct, 2017.

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  1. Corey Batt

    Corey Batt Well-Known Member

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    Interesting - Suncorp has just changed their risk settings for the Brisbane CBD and certain other postcodes in the metro area for units, limiting their LVR's to an 80% maximum.

    The lender has noted this decision is based on the weakness in the investment market for this type of property and reduction in values.

    In reality this is a drop in the ocean in terms of lender options, but is a clear indicator as to market conditions with this market subtype for the area. Brissie units have been increasingly becoming the butt of jokes in terms of oversupply and this is now starting to reflect in lender appetite. Watch this space.

    If you're looking at investing in units in the Brisbane CBD and surrounds - take note when doing your due diligence.
     
    Corey Batt, 16th Oct, 2017
    #1
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  2. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    They must be getting shortfalls on vals?
     
    Colin Rice, 16th Oct, 2017
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  3. Lawrence Barnes

    Lawrence Barnes Well-Known Member

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    This has been going on for ages, most of the banks did this a while back. If Suncorp are doing an 80% LVR that is good compared to most of the others. A lot of the banks won't lend in certain postcodes around Brisbane CBD at all now. Buying off the plan is always risky and many people have now learn't the hard way.
     
    Lawrence Barnes, 17th Oct, 2017
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  4. Richard Taylor

    Richard Taylor Well-Known Member

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    Really which lenders are those.

    Sure i agree certain post codes have reduced Lvr but i am not aware of ANY Post Code including 4000, 4005 where lenders won't lend at all.

    Had a quick glance earlier of 20 lenders and couldn't find a single one who had outlawed a post code entirely.
     
    Richard Taylor, 17th Oct, 2017
    #4
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    always is an absolute, and that can often cause issues in and of itself

    we have DOZENS of clients that have done VERY well with OTP, and few that have hurt a bit,

    Binning OTP is not dissimilar to binning Property investment over another asset class "just because"

    ta
    rolf
     
    Rolf Latham, 17th Oct, 2017
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  6. Lawrence Barnes

    Lawrence Barnes Well-Known Member

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    Ok blacklist may have been to stronger a comment, although all the articles are labelled this way.I just did and found this article from end of last year:
    600 towns and suburbs on NAB lending blacklist

    And this one:
    NAB targets hundreds of suburbs in borrower blacklist
     
    Lawrence Barnes, 18th Oct, 2017
    #6
  7. Lawrence Barnes

    Lawrence Barnes Well-Known Member

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    I was referring to the high rise CBD apartments in particular which carry higher risk. Far better way to invest and far less risky in my opinon.
     
    Lawrence Barnes, 18th Oct, 2017
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Thats cool

    TONS of our Sydney clients have done really really well this cycle with CBD and fringe CBD stock.

    Not something that makes sense in the current portion of the cycle, but like most things one cant assess something on ONE measure only.

    ta
    rolf
     
    Rolf Latham, 18th Oct, 2017
    #8
  9. kanad

    kanad Well-Known Member

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    kanad, 18th Oct, 2017
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