Do you have settlement risk on your apartment?

A massive wave of new apartments is scheduled to hit the market in the next two years and could trigger a crisis if off-the-plan buyers become unable to complete their purchases. Core Logic RP Data reports that Melbourne and Brisbane, and Sydney to a slightly lesser extent, will see a higher than average apartment completion rate in the next two years, putting downward pressure of prices.

Banks and other lenders have recently tightened lending rules and LVRs, particularly for investors, so some buyers who have already paid a ten per cent deposit could be in a difficult situation.

Source: The New Daily

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