Sydney Housing Market Update 26/04/2018
Hot off the presses
We can inform you all of a major announcement made by the Australian Prudential Regulation Authority (APRA) today.
As of 1st July 2018, the 10% investor lending growth restriction on Australian banks will be removed. Click on the link for more information:
https://www.smartpropertyinvestment.com.au/finance/17898-apra- removes-10- growth-restriction-on-investor- loan-growth
Introduced in December 2014
This move was deliberately made to discourage high-risk lending to investors and subsequently improve the prospects of first-time buyers and owner occupiers to secure a home.And whilst it took a while (around two years to be exact) the end result has been a market where prices stabilised mid last year and the playing field has been increasingly leveled.
It was a bold but necessary step
To firmly put the brakes on mass investor lending particularly on new apartments in the major eastern seaboard Australian cities of Sydney and Melbourne. But with those restrictions now entirely removed I would encourage those currently purchasing to ramp up their efforts. It could very well be a case of what you see available right now will be more expensive by the end of the year.
I may be wrong
But all of those buyers agents I used to see with a never-ending list of investors on their books looking to get into the market may soon return en masse. With interest rates still at an all-time low, I can see no reason why they wouldn't