Likely tightening in lending rules is unlikely to impact investment-grade property

Investopoly · Oct 5, 2021 · 18m

Federal Treasurer, Josh Frydenberg has asked the Council of Financial Regulators to investigate the fact that credit growth is materially outpacing growth in household income and to advise on any policy responses.In lay terms, the Treasurer is worried that people are borrowing too much money compared to their incomes and that could be risky for the economy.Increase in home lending is pronouncedIt has been well documented that house prices in Australia have been rising at a fast pace over the past year. But this isn’t unique to Australia. This is also a global phenomenon, as illustrated in…