Banks getting wary of mining towns.

[depreciator]

Story in the Herald yesterday. The banks are a bit behind on this:

http://www.smh.com.au/business/banks-restrict-loans-in-risky-mining-towns-20131125-2y636.html

Banks are reining in home lending to investors in resource sector hot spots, as lower spending by miners hits regional property markets and prompts banks to reassess their exposure.

Two of the country's biggest banks, Commonwealth and ANZ, have in recent weeks curbed riskier lending in areas that rely on resource industries.

snip...

 

[Aaron_C]

Interesting to see what impact this has on prices given that most people try to go 90% on these things. Just looks like CBA and ANZ are joining WBC on limiting lending per postcode.

 

[Peter_Tersteeg]

Whilst the specific policies the article refers to were announced about a week ago, the title could have been published over 18 months ago at this point. There's been a number of things the banks have been doing for a long time to restrict lending to these areas, even if they haven't explicitly said so.

 

[norwoodman]

Funny that Gladstone (postcode 4680) has only just been added now to the postcodes for restricted assessable rental income. 8%+ yields on purchases are on nigh impossible to find or create now at the moment anyway.

 

[MTR]

Whilst the specific policies the article refers to were announced about a week ago, the title could have been published over 18 months ago at this point. There's been a number of things the banks have been doing for a long time to restrict lending to these areas, even if they haven't explicitly said so.

Absolutely this is old news, 2 years ago, with price drops of 25% in Karratha as well as 20+% in rents and an oversupply of properties, I think prices are still falling in the Pilbara area.

Its not surprise the mining boom is over, this is now on the nose and seen as high risk for banks/investors.

What does surprise me is when I read posts yesterday/today where investors are looking to invest in mining towns now, seen as great value, shame you can not rent the property out. This is suicide at the moment.