, , , , , , , , , , , , ,

Suncorp blacklists your suburb!

blacklisted

Big banks are set to announce tougher measures to crack down on high rise apartment purchases including blacklisting more than 100 Brisbane suburbs, doubling the minimum apartment size to qualify for funding, evidence of rental cash flows and tough new valuation criteria.

Lenders such as Adelaide Bank are introducing "minimum funding requirements" requiring apartments to have their own bathrooms, kitchens, laundries, and windows in key rooms, such as bedrooms and lounge rooms.

Others, such as Suncorp Bank, the nation's fifth largest mortgage lender, are circulating a list of 39 Brisbane postcodes covering more than 100 city and metropolitan suburbs where the new lending restrictions will apply from next Monday.

"Our settings have been adjusted for postcodes based on recent weakness in the investment unit market in Brisbane, with evidence of a reduction in prices," a Suncorp Bank spokesman said.

suncorp restricts lending to local suburbs

McDowall and Everton Parks No 1 rated real estate agent Madeleine Hicks said "suburbs like McDowall, Stafford, and Everton Park, are really a victim of what has been happening in neighboring suburbs Chermside and Nundah.  A lot of units have been built in those suburbs and we are paying the price"

 

"Whilst there has been some unit development in our main suburbs it has been nothing compared to our neighbors," said Hicks.

Nervous lenders are turning the screws on apartment buyers amid growing concerns about over-supply, falling prices, restrictions on foreign buyers and potential risk from combustible cladding widely used on high rise apartment exteriors.

For example, new apartment sales in the Queensland capital have reportedly collapsed by more than 70 percent in a year, prompting desperate developers to offer lucrative incentives to attract buyers.

Developers, such as Consolidated Properties, claim Brisbane has been cruelled by restrictions on financing set up to ease speculative buying in Melbourne and Sydney.

Other developers, such as ForceOne Development, have been using incentives like a free Toyota Yaris to encourage apartment sales.

AdelaideBank, a division of Bendigo and Adelaide Bank, will today (Wed) announce stricter controls on apartment lending that include bigger sizes, better design, identifiable cash flows for investor/lands and more stringent calculations of a borrowers' capacity to repay.

 On the Plus side

"Now presents a great opportunity for cashed-up investors to get into the growing Brisbane market and take advantage of bargains that exist.  We know that the population in Brisbane will continue to increase and that will mean there will always be strong demand for homes in the inner suburbs," said Madeleine Hicks

In fact, Ms. Hicks called for "greater investment in infrastructure in the Stafford, McDowall and Everton Park suburbs to better reflect the increase in population that is moving into these suburbs.  This only seems fair as the Council is collecting greater revenues but not spending the money here."

The Minimum requirements for high-density apartments to obtain funding include windows in bedrooms and living rooms, separate bathrooms, and their own laundries and kitchens. High-density apartments are complexes of more than 50 units or five stories.

Minimum sizes for two bedroom apartments have been doubled to 60 square meters and timeframes for off-the-plan valuations have been reduced from six to three months to "better the risk" and "align acceptance of applications and valuers' professional indemnity cover".

Last month Australia and New Zealand Bank also issued a blacklist imposing tougher terms requiring borrowers to have a 20 percent deposit.

The value of apartments has fallen by about 1 percent in Brisbane during the past 12 months, according to SQM Research, which monitors property prices.

Several recent reports by independent consultants have warned demand will be exceeded by the estimated supply of new apartments in Brisbane, which will add to downward pressure on prices.

There is also growing investor concern about the outcome of current investigations into the widespread use of inflammable cladding on apartments, particularly who will be liable for its replacement.

 Under Suncorp's new rules, it will no longer accept investment loan applications for apartments that do not have a minimum deposit of at least 20 percent.

What do you think are the banks right to restrict lending in certain suburbs only?

Source Brisbane Investor

Whats it Cost to Live in Your Suburb

Whats it Cost to Live in Your Suburb

The calculator will tell you what your combined household income needs to be to buy a house or unit in your ideal suburb.  Try It out and see what your neigbourhood looks like

 

All states and territories are available, and the data is supplied by CoreLogic, the largest provider of property data and analysis in the world.

SuburbsMedian Household Income For HousesMedian Household Income For Units
Alderley$138,756.98$92,852.42
Arana Hills$96,556.08$72,717.00
Chermside West$104,328.56
Everton Park$106,206.47$87,635.99
McDowall$124,150.98$84,506.13
Mitchelton$116,847.98$81,887.48
Stafford$110,588.27$82,419.56
Stafford Heights$107,458.41

 

, , , , , , , ,

Open Home Inspection Times for This Week

Open Home Inspection Times for This Week

Saturday, 18th June

09.00 to  09.30am     6 Bowen Ave Albany Creek
09.30 to 10.30am     1/216 Trouts Rd McDowall
10.30 to 11.00am     26 Eastbourne St Chermside West
10.30 to 11.00am      3 Nelson Ct McDowall
10.30 to 11.00am     41 Andress St McDowall
11.30 to 12.00pm     39 Mountridge St Everton Park
11.30 to 12.00pm     167 Saraband Dr Eatons Hill
12.10 to 01.00pm     111-123 Soames St Everton Park
12.30 to 01.00pm     35 Ainsdale St Chermside West
12.30 to 01.00pm     41 Soames St Everton Park

 

If you have enquiries, call Madeleine Hicks Real Estate team today on: 07 3355 6845.

, , , , , ,

Quick Tips: Bidding Guide For Auctions

Bidding at auctions can be a high adrenaline event, especially for buyers who are unprepared for the high-stakes and fast paced action.

Research suggests that only about 40% of people or buyers who go to bid at an auction are actually prepared with a bidding strategy. This means 1000’s of bidders are going out each weekend with the intention to spend hundreds of thousands of dollars at the mercy of the market, vendor, seller and luck. A concerning thought.

Read more

, , , , , , , ,

Open Home Inspection Times for This Week

Open Home Inspection Times for This Week

09.00 to 09.30am       6 Bowen Ave Albany Creek

09.30 to 10.00am      167 Saraband Dr Eatons Hill
10.30 to 11.00am      26 Eastbourne St Chermside West
10.30 to 11.00am      3 Nelson Ct McDowall
11.00 to 11.30am       41 Andress St McDowall
11.30 to 12.00pm       125 Keona Rd McDowall
11.30 to 12.00pm       39 Mountridge St Everton Park
12.10 to 01.00pm      111-123 Soames St Everton Park
12.30 to 01.00pm       41 Soames St Everton Park
01.30 to 02.00pm       125 Keona Rd McDowall

 

 

, , , ,

Land Appreciates, Houses Depreciate. Or do they?

Land Appreciates, Houses Depreciate. Or do they

“Land appreciates, houses depreciate” is a ‘golden rule’ statement that is commonly quoted by investors. But this school of thought  only serves to limit the scope quite dramatically when looking at potential properties to invest in, hence excluding a large amount of investment opportunities on the market. So why don’t we all invest in a few acres of land and sit back and watch our portfolio grow? Why would we even consider an inner suburban apartment or townhouse that will certainly depreciate like a car or computer?

Read more

,

How to Secure the Funding for Your Dream Home

How to Secure the Funding for Your Dream Home

The process and journey of buying a house or property does not actually begin at the Real Estate Agent’s office, but with your bank or lender generally. This stage will estimate how much you will be required to pay per month as well as the size of the loan the bank will be willing to lend you. From here, you will have a gauge on the type of property you can afford to buy, and hence, your search can begin.

Read more

, ,

How can I be a confident property investor?

How can I be a confident property investor

Most people are generally pretty confident when stocks or property prices are going up. But it’s when negative news begins to filter through media and publications that you start to see investors jumping ship and selling off their investments. It’s the cool and confident investors that seem to rarely cave to this information and follow their own set of rules.

Read more

, , , , ,

Renters benefitting in a moderating housing market

The latest housing finance figures released today by the Australian Bureau of statistics (ABS) reflect continued declining lending activity.

The Real Estate Institute of Australia says the figures for July 2015 show, in trend terms, that the number of owner-occupied finance commitments fell by 0.2 per cent. This fall is the fourth consecutive monthly fall and follows eleven months of increases. If refinancing is excluded, in trend terms for July, the number of owner-occupied finance commitments fell by 0.2 per cent.

 

Read more

, , , , ,

Declining interest rates and rising income spur improving housing affordability

Declining interest rates and rising income

A new report released last week shows an improvement in overall housing affordability over the June quarter with the positive development seen in seven out of eight Australian states and territories.

The latest edition of the Adelaide Bank/REIA Housing Affordability Report, released last week by the Real Estate Institute of Australia, provides a comprehensive update for the sector using the latest data for the June Quarter 2015.

Read more