I have had a gap in sending out best bits due to some technical changes and basically me being a dufus in switching systems but we are back rolling and what a month or so it has been with articles like this one below talking about the banking changes. Frankly it seems like the people running the lending rules are hell bent on creating the very thing they are trying to avoid so they have a self-perpetuating collapse of apartment prices on their hands.
With banks completely stopping lending to overseas nationals there will be a truck load of apartment contracts fall over and no doubt some house and land deals too.
What does that mean?
Well, there will no doubt be some bawling Developers and Marketeers who have signed people up to overpriced city apartments that were never going to be a great investment anyway however, they will be comforted by banking the deposits and then offer them out to local buyers for a bargain.
Should you pick one up?
Maybe but I wouldn’t. Apartments don’t have land and you need land for real growth. Body Corporate fees go up and up and many scenarios I have seen aren’t genuinely cash positive so hold your cash and find the always safe and growing Residential House and Land in key growth areas.
That’s my two bobs worth.
Enjoy the article and email me for any questions or help needed.