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Care to share which areas?
I case you haven't heard; banks aren't lending over 80% anymore, end of discussion. So within a week NO BODY will be able to borrow over 80% to buy an investment property without the use of equity from a second security. If that's not a PPoR you won't be borrowing over 80% on that one ether. So that is what APRA thinks of your borrowing advice.
I may be wrong about nobody, but my guess is the pressure will be on all the banks to tighten their lending shortly.
My understanding is different from yours.I case you haven't heard; banks aren't lending over 80% anymore, end of discussion. So within a week NO BODY will be able to borrow over 80% to buy an investment property without the use of equity from a second security. If that's not a PPoR you won't be borrowing over 80% on that one ether. So that is what APRA thinks of your borrowing advice.
But If I called you an hour ago as your client and asked you what I should do you would have told me "no lend over 80%" That's a whopping fundamental error for an "investment advisor" to make.
How much do you charge? lol
Here is a few purchases that I have bought in the North Lakes LGA with a resent sale to compare to.
Address - Purchase Date - Purchase Price - Current Valuation - Approx.Capital Growth - Type
Mannikin St Griffin - 12/2013 - $411,000 - $484,000 - $73,000 - House 4BR, 2Bath on 448m2
Swallow St Griffin - 05/2014 - $422,000 - $484,000 - $62,000 - House 4 BR, 2 Bath on 432m2
Oriole Ct Griffin - 08/2014 - $439,000 - $484,000 - $45,000 - House 4BR, 2Bath on 407m2
Challenor St Mango Hill - 01/2015 - $468,000 - $505,000 - $37,000 - House 4BR, 2Bath on 420m2
Recent Sales for comparable property:
Lot 82 The Pocket, Griffin - 04/2015, 4BR, 2 Bath House (209m2 house on 450m2 land) - $486,500
---Quote (Originally by Mark Coburn)---
But when interest rates rise, I'm planning that my clients won't be forced sellers.
I'm not paid to be adventurous with my clients money, I'm paid to give them good advice. If you think i'm being conservative, you should speak to their accounts and financial planners.
---End Quote---
Originally Posted by GreyGhost
Again, my point is that you cannot tar all investors with the same brush. What is good for one may not be for the other.
If your policy is to advise on 80% lends then so be it, but understanding of client's situation, serviceability and end goal all come into play when determining the above. I think it is pretty lax advise to advise otherwise.
GreyGhost, I am amazed at your lack of finance industry knowledge. Do you honestly think that I have no idea about what I am doing? I speak to many clients who think 60% debt is too high. I have clients with $5M in equity and $1M in debt and they think thats a lot. Do you really think I don't review each and every client's situation and act accordingly? SERIOUSLY?
If you are so keen for everybody to be borrowing over 80% then why don't you write to APRA and ask them to change there most resent lending directive to the banks?
I case you haven't heard; banks aren't lending over 80% anymore, end of discussion. So within a week NO BODY will be able to borrow over 80% to buy an investment property without the use of equity from a second security. If that's not a PPoR you won't be borrowing over 80% on that one ether. So that is what APRA thinks of your borrowing advice.
accidental post
So what was the post mate ;-)
I case you haven't heard; banks aren't lending over 80% anymore, end of discussion. So within a week NO BODY will be able to borrow over 80% to buy an investment property without the use of equity from a second security. If that's not a PPoR you won't be borrowing over 80% on that one ether. So that is what APRA thinks of your borrowing advice.
Biz, I would have told you to call your mortgage broker, I'm a buyer's agency. We give property investment advice not lending advice. 95% of the clients we see are borrowing with CBA. They have stopped according to the updates we have been given by the brokers working with our clients.
Here is a few purchases that I have bought in the North Lakes LGA with a resent sale to compare to.
Address - Purchase Date - Purchase Price - Current Valuation - Approx.Capital Growth - Type
Mannikin St Griffin - 12/2013 - $411,000 - $484,000 - $73,000 - House 4BR, 2Bath on 448m2
Swallow St Griffin - 05/2014 - $422,000 - $484,000 - $62,000 - House 4 BR, 2 Bath on 432m2
Oriole Ct Griffin - 08/2014 - $439,000 - $484,000 - $45,000 - House 4BR, 2Bath on 407m2
Challenor St Mango Hill - 01/2015 - $468,000 - $505,000 - $37,000 - House 4BR, 2Bath on 420m2
Recent Sales for comparable property:
Lot 82 The Pocket, Griffin - 04/2015, 4BR, 2 Bath House (209m2 house on 450m2 land) - $486,500
I wonder how and where did you get that much high valuation Mark ?
You SERIOUSLY have no idea, nor does your brokers. CBA actually has still yet to make any changes besides some small tweaks around pricing for investors. CBA was previously seen to be out of the lights for APRA, but now that's not looking likely and could see them make some changes in the coming months. Now let's stop and see what's changes have happened, you're talking 90% max LVRs not 80% in most cases. >95% lends for investors make up a extremely small portion
Please get your facts right before you continue to embarrass yourself further.
I would be sceptical of any buyers agent selling predominantly H & L packages.