Please find below latest update from the developer for New Charsfield, 478 St Kilda Road, Melbourne:
Settlement Timing
Construction or New Charsfield is progressing well with building completion currently targeted for early next year. This is an indicative date only as construction timeframes are by nature difficult to predict. As settlement approaches we will regularly contact you with timing updates following communications we receive from the builder.
We are pleased to announce that building progress has advanced on site with the structure of New Charsfireld now complete. The Tower Crane has been decommissioned on site and all protective screens surrounding the building have been removed so that New Charsfield can be admired.
Apartment windows are now fully installed throughout the building, and joinery is now in place on all levels up to level 8.
Funding Strategy for Your Home
Driven by recent Government and prudential authority policy changes, Australian banks are being directed to reduce their exposure to property lending. There are also strong controls on any overseas bank seeking to advance loans directly in Australia. In this current restricted Australian banking environment, arranging settlement finance for new homes has therefore become increasingly difficult and taking longer to finalise. It is imperative to understand your funding options and assess your individual needs prior to seeking formal approval from a financier.
We recommend you contact a finance broker immediately to ensure you are prepared well before settlement.
Having a strategy in place early will enable you to streamline the finance approval process and ensure that you are able to settle in a time when financiers are limiting their lending exposure on new home funding. Preliminary research with Banks and other financiers that specialise in off the plan funding shows that there is funding available for New Charsfield. However, this process has identified a number of issues that need to be considered when arranging funding.
These are summarised as follows:
More Cash Required – financiers are reducing their maximum Loan to Value ratios (LVR) for lending, particularly for offshore buyers. Some financiers are now offering maximum LVR’s that are as low as 60%. This means you may require more of your own cash to settle the property than originally anticipated. You should be making arrangements now to cover the gap between the amount provided by a Bank or non-bank funder and the purchase price of your property. A finance broker will be able to provide you with an estimate of the cash required to settle the property. It is important you understand how much cash you require well before settlement.
Strict Lending Criteria – Financiers are being increasingly cautious as to who and how they lend their money. For example, other developers have reported recent incidents where buyers have not met the strict criteria set by their financier and have been forced to top up their lines of credit by gearing against other assets they own or inputting more cash. This is another good reason to start planning now. A finance broker can inform you of the relevant criteria and the information required for your application.
Longer Approval Process – funding approvals are taking longer due to the stricter approval process of many financiers. Borrowers need to be aware that there are different requirements from financier to financier and policies on lending is continually changing, which together only adds to the timeframe. Dealing with these issues is the reason we are strongly suggesting that you use a finance broker to source finance appropriate for your own needs.
Conservative Valuations – the restricted lending practices of financiers is also seeing pressure placed on valuers. In some instances, this results in downward pressure on valuations, requiring purchasers to use more of their equity to ensure they can complete their settlement. Purchasers need to prepare financially for this.
Lending Options – EBG has conducted comprehensive research in available funding for off the plan apartment space in particular to Foreign Investors. Please find below two firms who specialise in this area providing viable lending options regarding the purchase of your apartment at New Charsfield. Please note that the vendor and the Settlement Team are not financial advisors. You should always consult with your financial advisor and legal advisor in relation to your finance options.
My Mortgage Freedom
Elizabeth Haddick
Tel: +61 423 239 767
elizabeth@mymortgagefreedom.com.au
www.mymortgagefreedom.com.au
Click_here_for_further_information
BC Securities
Linda Leong
琳达梁
Australian Credit Licence Number 482240
M. +61 401 043 183
E. lleong@bcsecurities.com.au
W. bcsecurities.com.au
Click_here_for_further_information
We strongly encourage you to start planning for settlement. The New Charsfield settlement team are willing to discuss any further queries with regards to funding or any other matters about your home at New Charsfield.
Kind regards
Pip Wright
A Level 54, 525 Collins Street Melbourne VIC 3000
T +61 417 998 511
E Settlements@ebgdevelopments.com.au
W www.ebgdevelopments.com.au
