When you read about the high property auction clearance rates, our historically low interest rates and people buying apartments for their children, it seems like borrowing to buy property is a one way street to wealth – but the risks are increasing.
A recent article in the Weekend Australian Financial Review (8-9th August 2015) has highlighted how the investment lending landscape in Australia is rapidly changing. Many investors are being caught out by recent bank loan changes and in the case of off the plan apartments, some are also being hit with valuation shortfalls and lower than promised rental income upon completion.
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