Catalyst Finance Solutions

It’s no secret that the property markets in our two biggest cities, Sydney and Melbourne, are booming at present. In WA however, it is the complete opposite. Residential properties are down in value already and anyone who has tried to refinance recently will realise, bank valuations are coming in some 10% to 20% lower than expectations. Unfortunately, because Sydney and Melbourne are our biggest markets and it is evident that there is a bubble forming, policy is established to help alleviate some of the pressure in those bigger markets. The banks are quite openly attempting to quell the investor market by making funds more difficult to acquire. Higher equity/deposits are now required for investors and interest only loans are priced at a premium over and above principal and interest or owner occupied rates.