NSW Citi names 'blackspot' suburbs - 35% Deposit Needed

See, nothing in the NT is on that list. Investing anywhere in the NT is safe as a song.

 

When I first saw those high rise blocks going up in Carlingford I thought to myself OMG oversupply galore. Who would want to live there when it's not even walking distance to a train station?

But now they're all occupied.

Don't underestimate Asian demand. Might be related to the public schools in the local area.

 

surprised no rhodes/zetland/pyrmont. all 3 very high supply similiar to most that is listed.

If you are in greensquare precint, im not worried by the over the supply to behonest. so close to the cbd, and the lifestyle, everywalk is walkable/bikeable and surrounded by centennial park etc. zetland it self has like 3 parks.
go on a saturday and look at the rental opens, people are queue-ing up to go in the open before the agent even get there.

 

Ha! Actually now we've had the crash we had to have things are starting to look up.

I was expecting to see Darwin CBD in there but no....?

 

Gee...... there's one apartment for sale in Albert Park..... some oversupply!

 

Zetland has the same postcode as Waterloo so would be included. Same with Liberty Grove and Rhodes (with Concord West).

 

aha !! bingo. !

 

Banks assess their lending black list based on their loan book exposure as they need to monitor their credit risk.

As a rule of thumb, banks will not want to have their credits exceed 25% of the same block of building. That's why some people will experience some banks reject their loan application while another bank accept it with no alteration to the financials being submitted.

And with all these black list suburbs they usually have special conditions when you speak to a bank, it's not always a no go but it helps buyer to be alert and be prepared as they might have a hard time to obtain loan. For example Castle Hills houses are in high demand, while the bank may have concerns over the new units that are completing hence the postcode alert.

These black list suburbs are more of first in best served scenario.

 

Some of the suburbs on this list shock me- Bondi Junction, St Kilda, Albert Park (amongst others). Sure there are some unit developments in these locations but not nearly as many as are built in some of the other black listed suburbs. And they are all extremely desirable suburbs to live in- Bondi Junction is 20 minutes (walk) to the beach and 8 minutes via train to the CBD. St Kilda and Albert Park, both on the coast.

 

These type of lending & postcode based restrictions make a lot of noise & often create a bit of panic about financing circumstances. We often get calls from nervous OTP buyers that see this in the media and freak out.

Reality is lending options for these particular postcodes are almost as open as every other postcode - except with one lender. Other lenders have other postcode type restrictions, albeit they're usually at 80% LVRs.

Quantitively, given the lender & the petite market share they actually have - this has little/zero impact on buyers in those areas & the market as whole. Qualitatively, it does tell a story about what risk experts with access to quality data seem to think about certain locations though. Higher risk segment.