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

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

Read the full article here:  http://uchkconsulting.com/big-bad-wolf-melbourne-apartment-market.html

The Australian Government demands 32 years’ worth of real estate records in an unprecedented foreign buyer crackdown.

On December 8, 2015, the Australian Government announced it will be conducting extensive cross-checking of records to hunt down illegal owners of Australian real estate.

Full article: http://uchkconsulting.com/australian-government-demands-32-years-real-estate-records.html

The Australian Tax Office (ATO) is the Government agency responsible for overseeing foreign property investment.

The ATO will be examining more than 11 million people and has requested 32 years’ worth of data relating to real estate transactions across the country.

The ATO has demanded revenue and land title authorities and rental bond authorities across all Australian states to provide all data from 1985 to 2017.  

The ATO compliance officers analysis is estimated to reveal a web of corruption and miss leading behaviour. Illegal owners of Australian real estate will be hunted down, fined heavily, have their properties seized and/or be prosecuted.

ATO compliance officers will be cross referencing Land Title data property ownership with rental bond authorities, inconstancy will certainly red flag properties illegally purchased. As an example, if the registered land owner is different to the landlord registered with the bond authority, this will immediately raise suspicion that something (most likely) illegally is being conducted.

“The property data will be used to assist in the screening of foreign resident real estate applications and compliance activity to ensure foreign residents are complying with relevant laws,” an ATO spokesperson said.

The Foreign buyer crackdown was revealed in the latest Australian Government Gazette, wherein the Commissioner of Taxation lodged a notice of the data matching program.

Only a week after the government’s amnesty towards foreign investors whom who had unlawfully purchased property had expired, the Australian Tax Office cross referencing initiative is estimated to see a huge increase in identifying illegal Australian real estate transactions.

Over 50 compliance officers charged with investigating potential breaches of the law will also be looking into lawyers, conveyances and real estate agents that knowingly assisted foreign investors make an illegal transaction.