Foreign Lenders on their way

[Corey Batt]

All they'd have to do is law against them buying up all the little guys surely and why not clamp down on the coles and other mobs while we're at it.

FYI, Coles has been reducing their numbers of stores by selling them to independent supermarkets. Not buying up.

 

[Rolf Latham]

Let's see who is first to tighten when the economy slows. What short memories people have - RAMs Bankwest etc.

Carrots and Oranges

The old RAMS now RHG and Bankwest were very different funding models.

Old RAMS was on lending very short and lending very long. So when the liquiduity crunch came they were cactus.

Bankwest on the other hand also chased a fair bit of offshore funding but also had a large component of balance sheet money

Id guess AN ING or a Deutsche Bank or a Bank of China etc aint going to have the same liqudity probs

ta
rolf

 

[StefanA]

We'll just have to wait and watch how APRA balance milking the consumer and growing the commercial sector.

 

[VYBerlinaV8]

The problem in Australia is too much debt, debt piled on top of more debt

We shouldnt be celebrating more lenders lending more debt to Australians

Many people are living payday to payday with mortgage payment leaving them on the poverty line

There have always been people living payday to payday. This is because people, generally, spend all they can, which is usually more than they earn.

Australia is getting close to peak debt like I explain in my peak debt blog

Why do we bid against each other pushing up prices for the same houses

...um, because more than one person might want to live there?

How does this help anyone

We're hurtling headlong into peak debt and the result will ruin society

Debt is the worlds biggest bubble and more foreign lenders isn't the cure

Frankly, I find this post quite confusing. What is your actual point?

 

[Aaron Sice]

The problem in Australia is too much debt, debt piled on top of more debt

We shouldnt be celebrating more lenders lending more debt to Australians

Many people are living payday to payday with mortgage payment leaving them on the poverty line

Australia is getting close to peak debt like I explain in my peak debt blog

Why do we bid against each other pushing up prices for the same houses

How does this help anyone

We're hurtling headlong into peak debt and the result will ruin society

Debt is the worlds biggest bubble and more foreign lenders isn't the cure

it's not about debt - it's about having a choice of lender and more competition - end result better product and MORE AFFORDABLE debt for the consumer.

 

[tom32]

Why do we bid against each other pushing up prices for the same houses

We wouldn't if it was cheaper to build new homes than buy existing.

The issue is the Australian governments at nearly every level and in nearly every state has passionate fingers. Everything they touch, they f***.

The more they intervene in any market the more inneficient it becomes to the point many Australians actually believe we now have a land scarcity. What else could expain a price of $350k - 400k per small block in joints like kellyveille.

We have an infrastructure delivery issue, land zoning issues and in some capitals government levies on the development of new land in addition to a constant raising of the bar as to what provisions a developer needs to include in a block of land.

Now I assume it is super fast broadband too.... Everyone who has a house gets it free anyone who buys new has to pay from now on.

In some capital cities the direct government component of cost in a new block now exceeds the cost to the developer of procuring the block of land. Sydney is one such city.

Add to this the additional costs for that same land procurement due to inneficient zoning practices and you find even on this vast near limitless continent of ours we have very high prices on newly developed land.

When you see developers paying GST, state government levies and local government contributions, do not rejoice in thinking it hurts the developer in isolation. Of course it does to a degree due to the smaller demand for his product at the higher price v the market at large (existing) but for the most part the costs are passed on, they have to be? No one does anything for free...

Building / Development of residential is no exception I believe.

 

[hobo-jo]

The foreign lenders are largely interested in business and wholesale clients in Australia through a foreign authorised deposit-taking institution licence.

But some are interested in taking a run at Australia's four largest banks through consumer banking. Foreign observers see Australia's largest banks as inefficient, lacking the latest technology and more focused on profits and high margins than customer service, according to the AFR.

I agree with Token Funder, the interest in the consumer/retail side seems more like speculation.

We already have regional banks and credit unions that are generally more customer focussed than the big 4 (at least the customer satisfaction surveys would suggest this) + we have the CBA making a big push to look much more customer service oriented... what can the foreign banks offer that we don't alread have (would actually be interested in some specifics here if anyone knows what technology/customer service foreign lenders can provide that can't already be found in Australia)...

If I recall correctly PBoC was badly burnt by the bubble in US house prices, I can't see them making a big move to corner the lending in our residential property market, but I guess time will tell.