Settlements, valuations looming as post-COVID challenge
Australia’s post-pandemic sales surge and the continuing deluge of refinancing applications is resulting in settlement delays, while at the same time lower-than-expected valuations are beginning to cause headaches for homebuyers.
While positivity has been flowing through Australian property markets for much of the last three months, fuelling price growth predictions throughout 2021, first homebuyers and small business owners are reporting emerging challenges in obtaining finance.
Pitcher Partners client director Jason Fallscheer toldAustralian Property Investor Magazinethat banks were already near capacity dealing with a big pile of refinancing applications with interest rates at historic lows, and the recent sales surge had resulted in an increasing number of settlement deadlines being missed.
“I’m not trying to be alarmist, it’s just a fact,” Mr Fallscheer said.
“If you rang up a Big Four bank with a 30-day settlement, in most instances they would struggle to meet settlement.
“For the 2020 year…
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