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  1. #1
    Join Date
    Aug 2013
    Location
    NZer in Davao City, Philippines
    Posts
    1,334

    Default Apartment buyers left in debt as Aussie banks 'pull plug'

    Up to 5000 apartment buyers could be left tens of thousands of dollars in debt after borrowing deposits for unbuilt units they cannot get the remaining funds for.
    Martin Dunn, of estate agency City Sales, said Australian banks had "pulled the plug" on the New Zealand apartment market and were refusing to give would-be buyers the remaining 90 per cent for their mortgage.
    Dunn said this had occurred to "unsophisticated investors" who had purchased Auckland central apartments off the plans at property seminars, often "on the spot".
    They had been granted loans to pay for their deposits but when they had gone back to their banks to seek the remaining money they had been turned down.

    City Sales was attempting to sell off many of the apartments on behalf of the worried buyers.
    "We have an alarming stop in the supply of new apartments in a market where we can't keep up with growth," he said.
    "It's not appetite that's causing this to stop it's because banks are withdrawing all their funding from building them."
    A lot of the investors had not been aware that the banks had withdrawn from supporting the apartment market.

    "We're already getting a few alarmed what I call - without wanting to be unkind - unsophisticated investors who are saying to their banks, 'We've bought this apartment in Auckland and settlement's coming up in January, we're going to need the whole lot'. And the banks are saying, 'You must be joking'."
    City Sales had resold about nine such apartments in the last month.
    "It's a bit of a warning shot to people that things have just changed on a dime," he said
    Most of these people would have paid $50,000-$70,0000 10 per cent deposit with the expectation the bank would provide the remaining 90 per cent.
    "We've got a bit of a train smash coming up," Dunn said.

    http://www.nzherald.co.nz/business/n...ectid=11922859
    -----
    I think it's great news.

  2. #2
    Join Date
    Apr 2004
    Posts
    621

    Default

    Scum bankers ... happy to accept giving the deposit funds knowing full well the buyers will come for the rest in a certain timeframe ....and the Damn NZ Govt talks up apartments as affordable first homes to kiwi utter BS ...

  3. #3
    Join Date
    Jan 2011
    Location
    NZ
    Posts
    216

    Default

    Not the banks' fault. The situation has changed so the banks have to adapt in response to the fall in credit availability. This is what you signed up for.

  4. #4
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,272

    Default

    Unfortunately that is one of the risk of buying of the plans. You need to be 100% certain that you can settle when the time comes.

    Also it is a risk(gamble), there is no guarantee the apartment or secton will be worth more than you paid for it, by the time title is available. In good times, buyers can do very well and have done in last 2-3 years, but times do change.

    Maybe a lot of these buyers were a bit to greedy and took too bigger gamble!

    Ross
    More Profit from Property? Learn How HERE.
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  5. #5
    Join Date
    Sep 2008
    Posts
    7,009

    Default

    with the recent price rises

    pretty sure they can all get out with a little profit
    have you defeated them?
    your demons

  6. #6
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    7,480

    Default

    Quote Originally Posted by eri View Post
    with the recent price rises

    pretty sure they can all get out with a little profit
    Haha until people start reading stuff like this in the Herald, and then you watch the buyers dry up!

    And then in a year's time, savvy investors will pick them up for 2/3 of their off the plan price.

  7. #7

    Default

    Quote Originally Posted by Davo36 View Post
    Haha until people start reading stuff like this in the Herald, and then you watch the buyers dry up!

    And then in a year's time, savvy investors will pick them up for 2/3 of their off the plan price.
    Another scaremongering puff piece from Anne Gibson.

    This whole story is based on wildly speculative stats and anecdotes and seems to be talking about investors only, nothing to do with normal owner-occupiers. As you say a "savvy" investor may pick it up for 2/3 of the plan price.. from "non-savvy" investors. My heart bleeds
    Last edited by donna; 24-09-2017 at 11:24 AM.

  8. #8
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    7,480

    Default

    Quote Originally Posted by bmt View Post
    Another scaremongering puff piece from Anne Gibson.

    This whole story is based on wildly speculative stats and anecdotes and seems to be talking about investors only, nothing to do with normal owner-occupiers. As you say a "savvy" investor may pick it up for 2/3 of the plan price.. from "non-savvy" investors. My heart bleeds
    Well she is quoting Martin Dunn.

    But then I wonder if he has an interest in a lot of desperate sellers heading his way.
    Last edited by donna; 24-09-2017 at 11:25 AM.

  9. #9
    Join Date
    Jan 2005
    Location
    Auckland Central
    Posts
    164

    Default

    I'm surprised they got the finance in the first place, the banks will only loan 60% on apartments. Hasn't this been in place for a long time now?

  10. #10
    Join Date
    Sep 2008
    Posts
    7,009

    Default

    ^

    think it's a little more nuanced that that

    differnt banks, different requirements, off-the-plan, bigger apartments etc

    the lending officers want to lend, think there are commissions involved

    but they have to stick with the banks ever changing rules

    so a yes this month

    can be a no next

    if it wasn't in writing
    have you defeated them?
    your demons


 

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