The apartment projects BLACKLISTED by a major Aussie bank
An undisclosed major bank has a blacklist of 6700 apartment projects across Australia.
The projects are where buyers are either refused loans or are offered reduced loan to value ratios (LVR).
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The list has been obtained by The Australian Financial Review from the mortgage broker, Home Loan Experts. The newspaper article only pinpointed a handful of effected projects.
It reveals projects where buyers have either been denied loans or offered less funding are 19 Larkin Street in Camperdown in inner-city Sydney, Finbar’s Aire apartments in West Perth and Meriton’s developments on Main Beach on the Gold Coast and 1 Janoa Place in Chiswick, inner west Sydney.
Sydney-based Home Loan Experts noted “blacklisted” projects vary across the banks.
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Areas which are consistently “blacklisted” however include Wolli Creek and Zetland (above) in inner south Sydney and the Brisbane CBD given a potential oversupply of new units or the bank reaching maximum exposure of loans on a project, managing director Otto Dargan said.
Earlier this year RiskWise declare Zetland as the riskiest off the plan suburb in 2018.
NO LENDING (EXPOSURE REACHED)
19 Larkin Street, Camperdown, NSW;
58 Cairds Avenue, Bankstown, NSW;
23 Mcintyre Street, Gordon, NSW;
10 Rosamond Road, Footscray, VIC.
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RESTRICTED LENDING
29 Woodroffe Avenue, Main Beach, QLD, Maximum LVR: 70%;
1 Janoa Place, Chiswick, NSW, Maximum LVR: 80%;
Cromwell Road, South Yarra, VIC, LVR: 80%;
275-277 The Esplanade, Cairns North, QLD, LVR: 70%;
36 Griffith Street, New Farm, QLD, LVR: 90%;
659 Murray Street, West Perth, QLD, LVR: 80%
A dense project is usually one which has more than 30 apartments, Dargan said.
Serviced apartments or converted hotels are always considered as high-risk lending.
Assisting borrowers who have been rejected by banks is now a constant challenge, Dargan added.
This story was first published on Property Observer.