For Immediate Release:
28th October,16: While traditional banks continue to tighten lending restrictions for overseas investors, private loan lenders in Australia are filling the gap and, according to economists, it’s lucky they are.
Australia’s credit rating agencies have warned that the banks’ clamp down may slow demand from these buyers, and that could be a potential risk to house prices in some areas.
The good news, however, according to HSBC, is that demand for loans from Chinese investors in Australian real estate is holding up.
All four of Australia’s big banks – Commonwealth, Westpac, ANZ and NAB – reduced lending to foreign buyers earlier this year. But far from killing off confidence in this market, it actually opened the doors to Australia’s fifth bank – private lenders.
Private loan lender Credit Connect Capital Ltd recently made the decision to finance non-resident loans, saying it was in response to “significant loan enquiries” from finance brokers, real estate agents, lawyers and accountants, seeking finance to assist their foreign clients in purchasing Australian properties.
In just four weeks, Credit Connect Capital was approached to finance around 200 purchases of residential properties, mostly in Melbourne, Sydney and Brisbane.
The Foreign Investment Review Board reports that Chinese property buyers spent $24 billion-plus on Australian real estate in the financial year ending June 30, 2015. And at the beginning of October 2016, it appears demand is just as strong.
Phone Credit Connect Capital on 1300 795 507.
64/2 Arbour Avenue
1300 795 507
*The information contained in this document has been prepared by Credit Connect Capital (CCC) for general purposes only, while every care has been taken in regards to its accuracy no warranty is given or implied. The information contained herein does not constitute financial product advice and or an offer to invest. We recommend that any person obtain financial, legal and taxation advice prior to making any investment with CCC.