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Saturday 21 May 2016

Loan equity LVR rental yields Australian property market

Loan equity LVR and lower rental yields will crash the Australian property market as apartment over supply crush valuations banks demand additional loan equity.
Loan equity LVR rental yields Australian property market

Saturday 2 January 2016

Melbourne CBD Apartment Collapse

Big Bad Wolf of the Melbourne CBD Apartment Collapse in 2016


Towers of Melbourne apartments made of straw are tipped to collapse as the big bad wolf of oversupply and APRA hits the CBD and Southbank real estate markets

There are three little pigs of circumstances that has created a unique set of market conditions that will force investors into financial duress.
  1. Piggy One - Mammoth over supply effecting occupancy and rentability 
  2. Piggy Two - APRA finance conditions reducing LVR’s for overseas investors
  3. Piggy Three -  Bank valuers reducing purchase prices by up to 20%
To understand the Melbourne CBD and Southbank property market, supply and demand, immigration and birth rates, valuations and Government reports is critical due-diligence to prepare the canvas prior to painting a picture of the real estate market.

In this discussion, we look at the matrix of the Melbourne CBD and Southbank:  Approvals - Supply - Immigration - Rental