&&&&&&&&&&&&&&&&&&&&&&&&&&&One more point....those who think fundamental demand for property will absorb reasonable increased tightening of foreign credit should keep in mind over 40% of new loans written nowadays are for IPs, not PPRs.
I would argue most investors are more sensitive to rate rises than owners, on the basis they are buying based on less elastic serviceability.
Dear WinstonWolfe,
1. If what you said is indeed true, I must further infer that the Australian housing markets are in some sort of a housing bubbles at this point in time with some 40% of the new loans being taken up to purchase new investment properties.
2. Which specific housing markets are such high levels (40%) of new investment loans being presently concentrated in?
3. Can you please further point us to the relevant source that shows that the 40% of all the new loans taken up recently in Australia are for housing investments rather than for owners-occupiers house purchase or/and for existing home renovations purposes.
4. Looking forward to learning from you further, please.
5. Thank you.
Cheers,
Kenneth KOH
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