Mirvac CEO Campbell Hanan told the UDIA national congress land-less mortgages would let buyers purchase a home without land, an idea Stockland's Tarun Gupta and CBA's Matt Comyn backed. Intrapac's Maxwell Shifman said corporates want long-term land income, but banks must solve security over a depreciating asset.
As I told the Australian Financial Review: “The reason the big corporates want to do it is they want to have a long-term investment product that generates an underlying income on the land,”
I also said: “They get what they want – long-term cash flow – but it also reduces that barrier to entry where land is expensive to buy.”
And I added: “That's the bit the banks have to get around from a security perspective,”
I went on to say: “I don't know how you secure the long-term value of a depreciating asset. I'm not saying you can't. It's a different way of looking at things.”
Australian Financial Review, 20 March 2024 — Read the full article