Something you guys should factor into your calculations when buying property. Business lending is down. It is reported in the Fin, Aussie and in other financial sections of the national news. The way I see it...when businesses aren't borrowing, the lenders have cash. When the lenders have cash they will lend to home buyers, but the returns on lending are lower with more risk. Given we are being warned of higher unemployment and more business moving offshore, the banks will have to increase interest rates to keep their healthy balance sheets. We have an increase in house buying, but lets see how things go when the interest rates are hiked back up. And they will be; let's not kid ourselves.
