VietNamNet Bridge - At most banks, loans provided to the real estate sector account for no more than 7 percent of their total outstanding loans, but the figures are above 10 percent at other banks. The outstanding loans provided to the real estate sector in 2010-2017 By the end of the second quarter, Sacombank had VND42 trillion worth of loans provided to fund activities related to asset trading and consultancy service, most of which were real estate and real estate brokerage service. The figure represented an increase of VND3 trillion compared with the beginning of the year. However, the ratio of the loans on the bank’s total outstanding loans had reduced from 17.6 percent to 17 percent. This was attributed to the sharp increase of VND23 trillion worth of loans in the first six months of the year. Sacombank is one of a few banks which have loans to the real estate sector exceeding 10 percent of total outstanding loans. The other two banks are Kien Long Bank and Techcombank, … [Read more...] about Real estate credit tightened
Wake county real estate
Real estate credit under strict control
Nguyen Tri Hieu, Economist The real estate lending rate may be much higher than the published number. The SBV’s regulations on credit for real estate business are aimed at real estate loans for profit purposes. However, many people now buy houses or repair homes with loans from banks, but these loans are now classified as consumer credit and, if the mortgage is included in real estate credit, it will account for about 20 per cent of total outstanding loans. If real estate credit is not controlled and money is still poured into the sector next year, the real estate market may return to saturation, recession, and oversupply. Tran Du Lich , Economist The bad results of bankers pumping investment into the real estate and security markets during 2007-2008 had a great negative impact on the markets, which have not been fully overcome yet. This is a major lesson for the whole economy in general and the banking system in particular. Therefore, I would say that the credit tightening and … [Read more...] about Real estate credit under strict control
Restrictions on real estate credit bearing fruit
Recent moves to restrict credit for real estate are having an effect. One day in July, Ms. Nguyen Mai Phuong, a 45-year-old businesswoman living in Ho Chi Minh City’s Binh Thanh district, visited a few banks to seek a loan of VND2.5 billion ($110,000) to purchase land. She was told of the new interest rates on home loans, ranging from 8-10 per cent per annum for the first year, depending on the customer’s objectives, and then 11-12 per cent. “I’m re-considering my plans, as these rates are much higher than a few months ago,” she said. Most local real estate developers have also been restricted in approaching capital resources over the last year due to the State Bank of Vietnam (SBV)’s moves to tighten capital flows into the local property market by raising the credit risk on real estate loans and reducing the proportion of short-term capital to be used for medium- and long-term loans by commercial banks, due to concerns about bad debts amid the … [Read more...] about Restrictions on real estate credit bearing fruit
Las Vegas shooter used real estate investments to fund gambling, guns
To the Texas brokers who met him in 2004, Stephen Paddock was an unremarkable man looking to buy an unremarkable property near Dallas, hardly distinguishable from other casually dressed Californians who flocked to the area to make investments. After touring the 111-unit apartment complex in Mesquite, Texas, with the brokers, Paddock bought it for $8.4 million, partly with the proceeds from selling some smaller properties in Los Angeles. When he sold Central Park Apartments a decade later, he had likely made $5 million to $6 million in profits, according to financial records reviewed by Reuters. Paddock's lucrative real estate ventures, which helped underwrite his high-stakes gambling, may have also allowed him to buy tens of thousands of dollars' worth of rifles and bullets in advance of his attack in Las Vegas on Sunday. A complete picture of his finances is still being assembled by investigators who are trying to fathom what drove an apparently wealthy retiree to haul … [Read more...] about Las Vegas shooter used real estate investments to fund gambling, guns
Beachfront resort real-estate market wakes up
VietNamNet Bridge - Many resort projects have restarted after a long four-year period and interruption amid the strong recovery of the national economy and the new law allowing foreigners to own houses in Vietnam taking effect on July 1. Nguyen Dinh Trung, chair of Hung Thinh Real Estate Company, believes that the decision to allow foreigners to buy houses in Vietnam has helped. Real estate developers have resumed projects in Nha Trang, Da Nang, Phu Quoc and Phan Thiet. On Phu Quoc Island in the south, two 5-star resorts, Salinda Premium Resort & Spa of Salinda Group and Vinpearl Premium Resort & Spa of Vingroup, kicked off in late 2014. The construction of 4-star Novotel Phu Quoc Resort with 406 high-end rooms and 40 bungalows, developed by CEO Group, the 5-star hotel Crowne Plaza Phu Quoc with 400 rooms by BIM Group and Sunset Sanato Premium complex by Chin Chin Nui Company also has started, expected to be completed by 2015-2016. M.I.K.’s high-end resort Sol … [Read more...] about Beachfront resort real-estate market wakes up