16 Oct 2018
Australian Residential Property: Loan Capping
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
This is the other side of The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Debt serviceability.
The amount of debt that you can borrow to purchase any property type has already been reduced by lenders as a result of The Royal Commission.
In addition to The Royal Commission the Federal Government made Comprehensive Credit Reporting compulsory from 1 July 2018 which requires lenders to share 50% of borrowers data increasing to 100% by 1 July 2019.
These measures have and will continue to put downward pressure on residential property prices.
It is like the perfect financial storm- property prices down, share prices down, bond prices down- it is literally coming from all directions.
Remember, when fear and panic take hold during the next financial catastrophe, investors will be presented with the opportunity to buy more quality assets at discounted prices.
Click to read.
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