APRA’s enthusiasm to kill off investor lending has worked, possibly a little too well. The Golden Goose of investor lending, rather than slowing down to a waddle (10% year on year growth), has something closer to a terminal illness. (The Adviser 28 Feb 2018)*
Today I had a phone call from a major lender stating that “We will price match or beat ANY offer in the market from a reputable lender”. That lender has had an overall DECREASE in investor lending.
This is hardly a surprise. Put prices up and demand slows. Regulators just don’t know how to tap the brakes – they almost always over shoot.
The message – if you are an investor on the sidelines – is that you should consider (based on cost of money) re-entering the market.
Today’s news is one of those – “you heard it first here” moments.
* https://www.brokernews.com.au/news/breaking-news/investor-housing-loans-sputter-247163.aspx
As always, you can call or email me anytime.