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Chinese investors offered no deposit loans for Australian property

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Your Investment Property | 28 Oct 2015, 03:20 AM Agree 0
The loans carry interest rates more commonly associated with credit cards and are for properties in Melbourne and the Gold Coast
  • Matt Gross | 28 Oct 2015, 02:23 PM Agree 0
    The buses are back and the Chinese investors are being taken to multiple developments in order to lock in contracts. This is from house and land packages in the western suburbs right through to multi-million dollar apartments. As the local market seems to be slowly tempering their thirst for investment property on the back of falling rents and increased vacancy rates in many suburbs, this no deposit home loan being offered by Chinese Banks will only serve to heighten the investment risk to all parties. When the supply of property, particularly apartments in the current cycle exceeds population growth - both current and forecast; the outcome is likely to be a sustained period of low to no growth. If it is the latter, the reality is that the asset value is going backwards in real terms. The damage that occurred in Australia's regional centres through overzealous property marketers/spruikers may well be on its way in many of Australia's capital cities. However with a typical build program of two years or more, by the time the problem is recognised, the horse will not only have bolted, it will have won the equivalent of the Melbourne cup two times over.
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