AUS Home Loan lending up 36% this year!

Lending Update
Sorry for the neglect in updates, however things have been quite busy with home loan lending up and. The unfortunate side of things for developers is that development loans is down around 54%! The breaks have been applied by the banks, and hardest hit is development loans - its their highest risk lending and they want to reduce their risk.

Developer Update
The gossip from one Development lender of a major bank: On average, developers are reducing their prices by around 22% to reduce their completed stock. Hopefully they have built in their margin to make sure its still profitable.

Large Developer Discounts On Offer - No Money Down!
This is reflected in the offers I am currently receiving form many industry sources. Some developers who have stock in remote locations such as beaches or far away from CBD areas are offering their units with 70% LVR from a bank, and 30% mezzanine finance, interest free for 5 years! In other words, no cash into the deal for 5 years. That shows a sign of desperation and they need to drop their stock in a hurry. It certainly got my attention, however we all know this is not a suitable investment for most people.

Let me know if you are interested in sourcing developer stock at a large discount, and I can pass on some details. This is not recommended for everyone, and I would strongly consider using a reputable Buyer's Agent to help you find a more suitable investment with lower risk.

Remember, No Money Down does not always mean Lower Risk.