For many off the plan property investors, this year is turning into a nightmare. Many investors have brought apartments off the plan before their buildings and apartments have been built. They lay down a deposit and pay the remainder on settlement when the keys are handed over, sometimes as much as 2 to 3 years later.
The banks have started to restrict credit, especially to property investors, and for many of these off the plan investors, they are running out of time to secure a loan before settlement. Westpac has recently lowered LVRs to 80% for property investors, requiring them to commit a 20% deposit. Banks are also frowning on investors with portfolios exceeding $1 million dollars.