Did APRA work??

60% LVR, 4.99% commercial/construction loan.
Can not share the lender at this point in time.
We have a US investor who is assisting us with his contacts, prior to this we were hitting our heads against a brick wall, as there is the usual hard money lenders at 12-15% and a other's at 8% but the fees/terms are not favourable

 

Well...had a few people being told furphies by certain brokers...... @Seal had the same issue......ask him...he just bought another place.....in Qld ....

 

Thanks Dabbler. I knew about limit of 10% of loans to investors. Is he saying that 5% is a possibility?

 

5% isn't realistic IMO. That would be a sledgehammer! In any case, it would be communicated well beforehand by APRA, which hasn't happened (and is highly unlikely).

 

There was some very minor media talk last week that if I/O lending continued to nudge the 10% speed limits APRA had imposed - and some lenders are apparently treading a very fine line according to those reports- there was a possibility of a 5% or 7% speed limit being introduced. But this was speculation by media types only.... as Redom has pointed out there has been nothing from APRA regarding this.

 

In the meantime............... no one rings a bell when the boom is over.

Ask your mortgage broker who is buying? I did..... you may find the answer very interesting.

If you cant borrow you cant buy? what does this mean?

Home loans to investors fall to lowest level in 12 months

 

Hence why Im exploring new niches.

Anyone with a decent income and a few IPs has likely hit the serviceability ceiling.

Pre APRA/ASIC was converting 80% of inquiries now its more like 10-20%.

The ones that do convert are usually first timers.

Will be interesting to see if there will be any reversals in policy after this thing has run its course?

 

Melb still going strong but investors are out, in the main its FHB market.

I expect a slow down, regardless of immigration, low environment interest rates if you can not service debt you cant buy, therefore we will see further stock come to market. We will go from no supply to over supply.

That was the purpose of Apra, to slow the market, so it is working but investors have probably not realised, its taken some time.

 

I think many here have noticed changes and or know it has slowed, but in all honesty, I feel this is the thin edge of the wedge and it may take many years to actually see what it has done and the full effect, if it has dampened things so much when there was demand, imagine when demand is less and people cannot renew IO etc over next 3-4 years.

 

Exactly... crazy if this small dampening has caused prices to actually fall....

considerinf interest rates so low, economy setting new records, unemployment so low, etc etc

 

Have you noticed a decline in enquiries/business in general?

 

... and this

VIDEO – RBA about to turn up the heat | Real Estate Talk | Your Trusted Voice For Property Investing. Anywhere, Anytime.

 

Being over in the west absolutely. From all reports this is across the board and not just me.

Pre APRA/ASIC would convert 70%+ inquiries and now its closer to 10-20% but same quantity (often more) of work involved due to sifting through scenarios that go no where due to serviceability and policy changes.

Taking 2 months of for personal reasons didn't help but thats life. I have been here before and managed to get it to work again so that I will do. Adapt or perish.

 

I agree we are just at the starting point and will take years to see the actual fall out.

Without activity hence more money circulating things will slow down. I think there may be a reversal of some initiatives once this comes to pass but wont return to the halcyon days of "easy credit" ever again.

This will result in other investment vehicles getting more attention. We may be in for a decent run on the stock market but I am no expert in that area.

 

It has slowed me up a great deal. And I'm a teensy-tiny small fish. Was looking into getting an IP in Brissie, but with the end of competitive IO and higher deposits means we're now looking at buying another PPOR and making the current PPOR an IP.

Our income isn't huge so this was always the plan but...would have been nice to have the IP option available...using anything other than Liberty... It also means that if we did want to diversify we'd have to essentially leave town.

Which leads me to think it's the mum and Dad investors on average incomes who've probably been put out to pasture by these regulations?

Maybe not such a bad thing? It stops people (and probably the whole country) getting into trouble?

 

Hopefully the net result of a decline in properties changing over (less buyers, less sellers) is an increase in rents.

 

My MB stating the same, and in the main its clients accessing equity

 

not what happened in Perth, market corrected and investors swamping the market with rentals causing massive over supply, 20% drop in rental income... ouch... yes not the best, lets hope it improves.

 

Add crappy vals to the mix combined with much tighter serviceability requirements and its never been tougher for property investors.

 

Thanks Colin
Yes, I expect so.