CBA pulls out of construction finance

Its annoying, unlike OTP house and land approvals can be done prior to titles being issued. Most FHB especially want to get finance fully approved before they commit to the land, even if the finance expires prior to titles and they have to get it re approved. Just means one less bank to choose from, or having to sell an approval subject to plan of sub instead of full formal approval.....

 

This.

Not so sure on limiting greenfield, but on brownfield apartment developments (in eastern capitals) I say this is welcome.

In today's Fin:

Housing rental growth at record low as supply surges
Australian Financial Review

House and apartment rents are growing at the slowest pace since at least 1995 - and fell in July - according to data provider, CoreLogic. CoreLogic's head of research, Tim Lawless, said rental appreciation was sluggish, on average less than 1 per cent a year, due to the boom in dwelling construction and record participation in housing by investors. "In particular, a high proportion of the inner city unit development is being targeted by domestic investors and foreign purchasers," Mr Lawless said. For landlords, the best rental growth was in Sydney, up 2.5 per cent, and in Hobart, up 2.3 per cent. The worst was Perth, where unit rents have fallen 7 per cent over the year, and Darwin, down 8 per cent. Weak rents, and rising prices, have pushed gross yields even lower, down to an average 3.4 per cent for houses, and 4.3 per cent for units, in July. In Melbourne and Sydney, the yields are even lower. "We expect that rental returns could push even lower over the coming months," Mr Lawless said. "From an investment perspective it means that capital growth is going to be much more important for a return on investment."

 

Isn't new housing construction the only sector remaining which is producing jobs or holding up at least and the others like manufacturing and mining already in recession.
If new construction goes bust, unemployment goes up, who is going to jackup rents then?

And no it wont be immigrants when unemployment is creeping up

 

Does anyone know if (and when) Bankwest have increased their rates for investment loans?

 

Rolf......I don't know what you are smoking...but the majors are also shutting down development lending and also some resi build lending.

What does that mean...well it means that APRA in their infinite wisdom maybe setting the scene for a major correction in Sydney.....why? Because....it has a lot of demand based on finance from investors...when you take this out of the market...developers will go bankrupt as people stop buying...this is already happening.

The CBA in particular is the most exposed ...thus why such a reaction. From my perspective they have not managed risk well.

I am actually quite stunned that ...this is not know to you..given you are in the finance game??