Wednesday, September 14, 2011

NAB Blackists 127 Queensland developments

According to The Age, the NAB Bank has blacklisted 127 Queensland developments, and will not lend money in relation to them (or at least, will take extra special care before doing so).  Most of the properties on the list are serviced apartments, resorts or student accommodation. The list also includes inner-city apartments.

The list indicated the unnamed bank barred financing for all developments associated with the federal government's National Rental Affordability Scheme, an initiative designed to boost housing for low-income earners around the country.

It has been reported that most other banks have also refused to finance investors or buyers for NRAS properties, apart from St George, which accepts borrowers for one project in Queensland.

It has long been known that lenders often decline to provide finance for buyers of apartment buildings once they reach pre-set exposure limits, commonly when 15% to 25% of the total number of apartments have already been financed by the lender."

See Property Observer and The Age

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