Australian banks Australian Property Featured Article

Late cycle property lenders to “crash and burn”

Monday, 3 October 2016

Oh yes, from the AFR:

Self-managed superannuation fund investors who are now being lured into funds that offer high returns by lending to property developers the bank have rejected, risk major financial losses, according to experts.

Bank lending for property development is tightening and for many developers the gap in funding is being filled by a shadow banking sector which raises money from investors with the promise of returns of 12 per cent or more.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.