In the September edition of Chan & Naylor Finance News , a Poll was published to our readers posing the question on whether it has become easier, or harder to invest in property.
Of those who participated in the Poll, 81% claimed it was harder, 12% said it had become easier, while 8% were undecided.
Some of our clients who felt it was harder to invest in property today, than compared to last year, pointed to the impact of APRA’s changes to lending criteria imposed on Banks as the main reason (making it tougher to get access to loans) while other investors blamed lack of stock as the culprit for a tough going 12 months.
- “The Banks aren’t lending to investors like they used to because of the changes APRA has imposed on the Banks.”
- “Financing/refinancing is almost impossible thanks to public service intervention into the real world. When did any situation improve when government or their agencies intervene? If there were more GFC style action to occur, any slight increase in the capital reserves of banks will not change the outcome! What a joke the theoretical do-gooders from APRA are! “
- Harder – “Lending criteria are more difficult and house prices are too high in many areas. “
- “Lack of stock”
- “Banks tighten up on investor lending plus lack of stock in particular close to Sydeny [sic] CBD.”
- “We have double side economy with the Eastern States economy booming and one other side the WA economy struggling . WA is the most affected with no capital growth, low rental yields and no jobs. The inequality between ones who have a lots and ones who do not is growing too. It is very challenging to invest in property for WA resident I guess much easier for investors on the east coast , in particular if they opt to invest into WA property market….”
- “Unprotected interst rate tough bank rolls “
- “Servicability [sic] is more harder.”
- “banks are goughing [sic] investors pockets !”
One respondent felt the situation for them hasn’t changed – “Still the same I think”.
While another, made a very interesting point:
“THE RBA should have reduced the LVR for investment properties down to 70% instead of 80% and this would have had the same effect as an increase interest rate up .37%. (This decision gave the big 4 banks an extra $1billion in profits)”