Major Banks Makes Lending Rules Strict, But Property Investors Still Investing
Stricter investor rules by major banks of Australia, makes it harder for people to invest in property, on the other hand the survey has seen that wide no. of investors are still having no effect of this strictness and they are keen to make a property investment.
As per the survey but Mortgage Choice, “54 per cent of potential investors would still go ahead with their plans despite lenders making sweeping changes to their lending policy and pricing”.
According to Mortgage Choice chief executive John Flavell, property investors still view property as a cost effective investment strategy.
He said, “When we asked potential investors whether or not now was a good time to invest, more than 70 per cent said yes, which goes some way to explaining why so many potential investors are not deterred by the spate of pricing and policy changes being made by many of Australia’s lenders”.
But, Mr Flavell said, the changes did represent a fundamental shift for people who had purchased property off the plan and had their loans approved on the basis of lending policy and pricing at that time.
“There’s potentially some issues in relation to people not being able to complete transactions by virtue of the shifting sands,” he told AAP.
News Source: http://www.tradingroom.com.au/apps/view_article.ac?articleId=6727041