Create the life you want
Were you planning to buy a residential property inside your superfund? Do you know someone who is?
You may need to think again!
Yesterday our mortgage specialist advised they had received the following announcement from Westpac & St George with the other banks expected to follow suit shortly ……”
Effective 31 July 2018 we will no longer be offering SMSF (self managed superfund) lending for property”.
You can expect to hear this news in the media.
In addition,
CBA are the latest lenders to announce that as of Monday 16 July they will now be releasing new and much tighter metrics around servicing mortgages with much deeper diving around weekly costs including how much you are spending on your pets and your children’s weekly activities.
We anticipate that the credit market will continue to tighten over the next 6 months as the new Government requirements flow through and depending on the new documentation requirements to be released over the coming 3-6 months this will most likely extend into the second half of next year before we start to find some sort of equilibrium.
This is bound to have a further softening effect on property prices as people will find it increasingly difficult to get a loan and people able to buy a residential property through their superfund will drop dramatically upon the full removal of lending.
So
….last drinks if you want to lock in a good fixed rate while some level of competition remains and lending rules are easier than they shortly will be.
As always we are there to help you with your mortgage and financial planning needs. Please don’t hesitate to call our office to discuss these issues further.
