I am not a property investor so my be very miss informed.
Paper ( Age Melb) today had an article re Unit/ Apartment developments main points being banks ramping up margins and also valuations at end of construction possibly being a lot less than the money needed to complete the transaction. It went on about cost of backing out if possible.
What hit me was a comment re 50% of contacts for sales and future settlement are over seas buyers. Driving past 8 current and planned developments today I pondered how easy it would be for developers to enforce contracts on Australian Investors in this sector and how almost impossible it would be for Developers to chase overseas investors who walk away from the deposits and refuse to play with our legal system.
Spill over is my interest. A few buildings not going up do not faze me at all.
