The Reserve Bank’s financial aggregate figures for January noted that a number of borrowers have changed the purpose of their existing loan following the introduction of two-tiered pricing in mid-2015.
“The net value of switching of loan purpose from investor to owner occupier is estimated to have been $35.3 billion over the period of July 2015 to January 2016, of which $1.4 billion occurred in January,” the RBA noted.
They have lost complete control the property market it's a ticking time bomb
Brokers are obtaining loans for investors as if they are going to move in. There is no checking after the loan is made as to what is actually happening.As long as the repayments are made the stupidy keeps going .
No one is paying off the debt they are waiting for the next idiot to borrow more than they did and as long as we keep getting lower rates it will continue.
Its like watching a slow car wreck, the problem is property looks like the holy grail always up never down.
when it blows the destruction will be history making.
