Chinese investors with their sights set on Australian real estate are increasingly turning to non-bank lenders as they look to circumvent restrictions aimed at slowing the flow of capital out of the Chinese mainland.
Non-bank lender Chifley Securities has seen a significant increase in demand for finance from Chinese investors, with 27% of its $500 million dollar loan book now devoted to borrowers from China.
According to Chifley Securities, those loans are being used for financing development for residential and commercial projects, as well as the acquisition of properties for future development or currently under construction.
While more of a quarter of their loan book is directed towards Chinese investors, Chifley Securities’ director Joe Morello is predicting more interest from offshore thanks to the falling Australian dollar as well as the restrictions put in place by the Chinese government that limit the amount of capital it’s citizens can take out of the country.
“The tightening of Chinese Government rules to stem the flow of capital from the country and the tougher lending criteria of the major Australian banks has seen a boost to non-banks’ business volumes,” Morello said.
“Coupled with the depreciation of the Australian dollar and the historic low interest rates, non-banks are expected to post a bumper year in lending and we now have close to $1 billion worth of funding lines,” he said.
Do you have more than $120k in your super fund? You could use your super to buy property - Find out how
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out