Risky lending on property
Risky lending on property
- 1999
- Estates Gazette (9902) 22 May 1999, 65(1) .
FPD Savills has warned that banks could be getting into risky lending on property by ignoring the implications of low inflation. Loan-to-value ratios of 90% are regularly offered, but with little rental and capital growth over a ten year term, depreciation and obsolescence can erode the value of property by as much as 40%.
BANK LOANS
DEPRECIATION
INFLATION
INSTITUTIONAL INVESTMENT
OBSOLESCENCE
PROPERTY INVESTMENT
PROPERTY LENDERS
FPD Savills has warned that banks could be getting into risky lending on property by ignoring the implications of low inflation. Loan-to-value ratios of 90% are regularly offered, but with little rental and capital growth over a ten year term, depreciation and obsolescence can erode the value of property by as much as 40%.
BANK LOANS
DEPRECIATION
INFLATION
INSTITUTIONAL INVESTMENT
OBSOLESCENCE
PROPERTY INVESTMENT
PROPERTY LENDERS