"Reduced demand for housing?. Demand is driven by people wanting somewhere to live. Less money being borrwed by investors is great news for anybody who already owns a rental. Why do you think rents are soaring. Last thing I want are more rentals becoming available. I hope private borrwing data shows a drop as well"
This guy is a full property bull. No matter what stat you throw at him he will try and spin it another way. It is like talking to a brick wall.
Rents are not soaring anymore in my state, they have peaked. It can be seen by the drop in interest in leases. Seen it first hand.
Less borrowing = less spending on property = declining in value as less money (debt) thrown at it = depreciating capital base = negative equity.
This is not a good thing for anyone speculating in property.
Negative gearing requires capital gains to supplement the large losses incurred. When you compound a declining capital base a negatively geared RE investor is losing out even more. The old notion of negatively gearing with copious amounts of debt is done. Foolish to believe this is the way to riches nowadays.
