Banks in Australia have started to clamp up on lending. Even 15...

Banks in Australia have started to clamp up on lending. Even 15 months ago I purchased an investment property and I was required to have 20% cash up front for a deposit, not 20% in equity from other home loans or from an already established LOC but 20% in cash. Things may have been different if I was to cross collateralise the loans with other property, I didn't even inquire going down that road.

I heard just last week a broker was unable to secure finance for a clients investment property as his income is currently low. However he has over $1M in equity in his PPOR.

I'm no expert at all but I believe the banking systems in China and the US are vastly different from Australia. During the sub prime crisis people were just handing their keys back to the bank and saying their farewells. So naturally the banks took the hits not the consumer. This can't happen in Australia. Debt like that will follow you for the rest of your days.

Will be interesting to see what occurs in the world over the next few years.