Dec 04 2018Add to Favorites
Home loan approvals have fallen significantly off the back of the APRA and the Royal Commission initiatives together with new Responsible Lending Criteria. The ABS recently reported that home loan approvals have fallen by 13.6% year on year and within that, investment loans have come back by c.20%.
One of the major contributors to the drop-in mortgage approvals has been the policy changes that all APRA regulated banks have implemented. Prior to the changes, most lenders would assess a new loan with an interest rate buffer of 7.5%, but any loans a potential borrower had with other lenders would be assessed based on what the actual repayments were.
The recent implementation of the new responsible lending criteria means that all loans a borrower has are assessed at 7.5%. And for an investor with for example, four investment properties, borrowing capacity is dramatically reduced.
“The Balmain Sub-Trust syndicated loan investments offer low gearing combined with the senior security is attractive to investors”, says Tom Sherston, Head of Sales at Balmain Private. “The investment horizons are also relatively short with loan terms ranging from c. 6 to 24 months which is seen by investors as an attractive savings tool when waiting for a home deposit to accumulate”.
“We also see a lot of investment activity via the Balmain Private platform from people in the property industry.”
Investment returns range from c.6.5% to 8.5% per annum net, paid monthly and investors can open an account with $50,000 and can invest in individual loan investments in increments of $10,000 via the online platform.
Dexus today announced its result for the half year and reaffirmed its guidance for distribution per security growth of circa 5% for FY19. Dexus Chief Executive Officer, Darren Steinberg said: “It has been a productive six-month period where we have added value through enhancing our development pipeline and attracting new investors to our funds management business. This has all been achieved while maintaining low balance sheet gearing. “In our office portfolio we continue to outperform the MSCI office benchmark1 over one, three and five years through driving higher rents and lower incentives, particularly in Sydney which has been reflected in property valuations during the period. “In our funds management business, we now have $15 billion under management with investors and partners that can invest alongside us through the cycle, reinforcing our objective of being the wholesale partner of choice in Australian property.”
CapitaLand Commercial Trust Management Limited, the Manager of CapitaLand Commercial Trust (CCT or Trust), is pleased to report distributable income of S$83.1 million for the quarter ended 31 December 2018 (4Q 2018), an uplift of 10.7% from 4Q 2017. Distribution per unit (DPU) was 2.22 cents, 6.7% higher than the 2.08 cents a year ago. Gross revenue and net property income for the quarter increased by 14.8% and 16.6% year-on-year respectively. The better performance was largely attributed to the contributions from newly acquired Asia Square Tower 2 and Gallileo, which more than offset the loss of income from the divestment of Twenty Anson.
Residential developer Legacy Property is set to commence a syndicated equity raise for its 7th and final stage of Caddens Hill, with minimum investment amounts starting at $250,000, targeting 17.5% investment return over the twelve month construction period. Legacy Property has $3bn of projects completed and in progress consisting of c.3,600 dwellings . 14 projects have been completed with another 7 underway, gross completed project values range from $85m to $248million for each project.
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