Thinktank

Australians have an “amazing love affair” with property, but many are limited in their investment exposure. At AIA’s recent annual conference, investors heard how three alternatives to direct ownership provide portfolio benefits with less hassle, particularly for income-seeking retirees.

Ongoing volatility is linked to uncertainty over interest rates, which appears likely to be nearing an end, the non-bank property lending specialist said. Buoyed by a recent $500 million CMBS deal that was more than twice oversubscribed, it maintains a “cautiously positive” outlook for credit performance.

Despite facing rising interest rates, a higher cost of capital and concerns about their borrowing base, non-bank lenders have made their place in the Australian economy in moments like this, when funding is needed and otherwise hard to get, says Thinktank’s Jonathan Street.

The non-bank sector is comparatively small but is growing in scale and impact, writes Thinktank’s Peter Vala. For many borrowers, it’s become a better option than the traditional banks.

More cranes signal greater construction activity and point to a sound economic outlook. Property lender Thinktank examines the current skyline and what it means for the market.