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For those who continue to believe the credit tightening is temporary...

Discussion in 'Property Finance' started by euro73, 26th Apr, 2016.

  1. euro73

    euro73 Well-Known Member Business Member

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    Screen Shot 2016-04-26 at 1.59.07 PM.png
     
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  2. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    That is going to be very bad for some Asian brokers / developers. What is the sudden revulsion to foreign borrowers being driven by? Someone in management finally realizing how Westpac was able to keep their lending numbers going from 2009 onward?
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Westpac have been the predominant lender for the asian markets for years now thanks to a few policies that result in less than compliant applications. Outside of these markets they're not exactly competitive, we only do a handful of deals with them each year.

    This is going to have a very interesting outcome for Westpac, especially when aligned with some of their other recent announcements.
     
  4. datto

    datto Well-Known Member

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    What will this mean for property prices?

    Maybe foreign investors will use Australian proxies to obtain their loans?
     
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  5. MTR

    MTR Well-Known Member Premium Member

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    I am not that naïve, I think we are in for a bumpy ride
    thanks for the feedback
     
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  6. House

    House Well-Known Member Premium Member

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    Percentage wise, how much would the loan apps from non-residents generally be?
     
  7. beachgurl

    beachgurl Well-Known Member

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    The professional fraudsters will find a new way to buy Australian property now they've been shut down by some lenders. What should've happened is that rather than preventing any foreign loans, the properties obtained via fraud should be sold off, like those properties that were purchased outside of the foreign ownership rules. How many cleaners and process workers will be able to hold onto their million dollar plus properties without any recourse?
     
  8. Blacky

    Blacky Well-Known Member

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    Does this include non-resident citizens?
     
  9. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Lets see... with APRA and FIRB restrictions, Foreign loans, Bank inquiries, NG and CGT politics, Mining, manufacturing and car industry;).., :
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    Last edited: 26th Apr, 2016
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  10. D.T.

    D.T. Adelaide Property Manager Business Member

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    If the perma bears keep wanting it long enough, eventually they'll get it :p
     
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  11. HUGH72

    HUGH72 Well-Known Member

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    I would suggest you are either fairly young or you haven't followed the property market in this country very long.
     
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  12. euro73

    euro73 Well-Known Member Business Member

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    Impossible to know as until recently the FIRB wasnt even keeping data ..... but I do know that within the industry it's widely acknowledged that Westpac/STG/BOM/BSA have a dominant market share believed to be @ 65% + of all non resident lending. There will be lots of very very large foreign investor focused brokers at Connective, AFG, PLAN and elsewhere, scrambling to find a new fave lender now, and accepting that they are going to have to start asking their offshore clients to stump up far more paperwork.

    This is not very good news for the tens of thousands of OTP Brisbane, Sydney and Melbourne apartments believed to have been purchased by non residents ...

    This could now get very very ugly for big developers...
     
  13. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Holy moly... things are getting interesting indeed....
     
  14. Coota9

    Coota9 Well-Known Member Premium Member

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  15. MindMaster

    MindMaster Well-Known Member

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    I second this question, where do expats stand with this policy?
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Non resident for tax purposes is I believe very diff to No permission to reside here.

    Expats have seen a tightening as well

    ta
    rolf
     
  17. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Direct quote from Westpac: "Westpac will no longer lend to offshore customers who are not citizens or residents of Australia with an eligible visa.

    It continues to be Westpac's priority to support Australian citizens and Permanent residents (including applicable visa classes) living outside of Australia on their journey to own a home or investment property in Australia"
     
  18. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Expat policy is dependent on the lender.

    Some lenders treat expats in the same way they treat true non-residents and others will treat them more leniently.

    CBA have the best overall lending policy for expats. In their case they will accept overseas income provided they you are an Australian citizen and the currency fits their currency list. Therefore they will go up to 95%.

    Other lenders like Westpac treat expats differently and will go up to only 70% however they do accept a broader range of currencies than CBA.

    Another layer of complexity is if one is an Australian citizen and the other is a non-resident – some lenders again will take the lower (being the non resident) and others such as NAB will take the higher (being the Australian citizen).

    Overall the major lenders are pulling back creating potentially an opportunity for the smaller lenders to step in. A lot of the brokers have been churning applications to majors and not utilizing the smaller lenders.
     
  19. propernewb

    propernewb Well-Known Member

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    As usual, its private industry leading government.
    FIRB was put in place in '07 to halt any harmful foreign investment - turns out they had their thumbs up their bums. Meanwhile FHBers reporting increased competition at Auctions from foreign nationals, all-the-while the media and government ignored the issue before pulling the race card.
    Only recently has their been any investigation into foreign ownership and it wasn't until mid 2015 that the government did anything (ATO powers). Sad state of affairs when we have a bank now leading government by cutting off credit.

    Foreign investors were never meant to be here forever - they were just a tool for citizens to sell out and deleverage.
     
  20. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    .....and the irony in all this is that Westpac HK is still lending to HK residents @ rates of 2.5%. 70% LVR.