"It is an unforgettable account of man's inhumanity to man that reads like something out of Orwell or Kafka, and is aptly described by Tofighian as 'horrific surrealism…...” The Australian Financial Review Magazine
You could be forgiven for thinking this is the review of a book about someones experience with a property loan application in the current market. Actually its a review of No Friend But the Mountains - which is completely unrelated to property but which I highly recommend.
Broadly there are a number of parallels in the book with being incarcerated on Manus Island & going through a finance application with an Australian bank;
- A sense of hopelessness & despair at the grinding bureaucracy
- Repeated request for information you have already provided
- Constant changes in policy with no warning
However the good news is that the difficulty of obtaining finance is providing good opportunities for my clients - especially;
1. Land banking future townhouse blocks that can be held on attractive rental yields - e.g. I recently bought a block of land for a capital growth focused client- its in a gentrifying suburb - a short walk from railway station & retail/hospitality with a 1960s clinker brick house at yield close to 4%. The “twist” is that prior to buying I met with council& it can definitely accommodate three townhouse, possibly four with clever design. Previously builders/developers would have been it over it - but they can't get finance. When the market for development finance turns & it will - the value of the site will significantly increase as its "highest & best” use as a townhouse site can be captured.
2.Quality properties where we can buy below market if we can settle quickly - getting calls from agents whose buyers can’t settle because the finance pre-approval can’t be turned into a full approval
