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 Changes in Refinancing Policies

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TSCavatzu
post Jul 16 2024, 10:14 AM, updated 2y ago

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Game over for property investors? Multiple lelongs incoming? Developers to lower prices?

Rinth
post Jul 16 2024, 02:11 PM

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QUOTE(Cavatzu @ Jul 16 2024, 10:14 AM)


Game over for property investors? Multiple lelongs incoming? Developers to lower prices?
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Previously I mentioned this in other post b4, dunno which post edi.

The impact only on refinance, not on purchasing new property… so technically no negative impact on developer pricing, in fact I think developer will benefit from it because those investor unable to refinance and cash out to purchase property with LTV 70% anymore, they had to go purchase thru developer that give huge rebates.

For lelong cases, it’ don't even have diirect impact, those lelong properties owner can’t serve the installment edi, no need to even talk about refinance…
IAmYourFather
post Jul 16 2024, 11:34 PM

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QUOTE(Rinth @ Jul 16 2024, 02:11 PM)
Previously I mentioned this in other post b4, dunno which post edi.

The impact only on refinance, not on purchasing new property… so technically no negative impact on developer pricing, in fact I think developer will benefit from it because those investor unable to refinance and cash out to purchase property with LTV 70% anymore, they had to go purchase thru developer that give huge rebates.

For lelong cases, it’ don't even have diirect impact, those lelong properties owner can’t serve the installment edi, no need to even talk about refinance…
*
I'm more curious, after e-invoice will developers still able to do 0% downpayment? That will be the nail to the coffin for overheated investors
TSCavatzu
post Jul 17 2024, 08:19 AM

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QUOTE(Rinth @ Jul 16 2024, 02:11 PM)
Previously I mentioned this in other post b4, dunno which post edi.

The impact only on refinance, not on purchasing new property… so technically no negative impact on developer pricing, in fact I think developer will benefit from it because those investor unable to refinance and cash out to purchase property with LTV 70% anymore, they had to go purchase thru developer that give huge rebates.

For lelong cases, it’ don't even have diirect impact, those lelong properties owner can’t serve the installment edi, no need to even talk about refinance…
*
Technically a bulk of property purchases are absorbed by investors. For first home buyers, their affordability is always low and they haven’t been able to game the equity system yet.

Developers won’t lose money but they have to price correctly and also sell the right product without gimmicks.

If your local population can’t absorb all the stock then it’s overseas buyers as evidenced by recent MM2H changes.

 

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