Property Investor Update
It was reported today in the Australian Newspaper that the Reserve Bank is moving to put the brakes on property speculation by investors amid fears the economy is vulnerable to a fall in house prices.
The Bank has signalled it plans to encourage authorities to crack down on lending to investors. It warned that “speculative excess” was underpinning record growth in investor demand for home loans.
Reserve Bank Reveals
The Reserve Bank revealed it was in discussion with other regulators to take “further steps to reinforce sound lending practices, particularly for lending to investors”.
“The composition of housing and mortgage markets is becoming unbalanced, with new lending to lenders to investors being out of proportion to rental housing’s share of the housing stock,” the RBA said.
If you would like any further information on the RBA’s initiatives, please let us know by calling 1800 451 820 or by email to [email protected].