"Those investors who leave the property market may actually invest in business ventures which would be more beneficial economically for Australia."
I do like that premise.
Tho' sadly economists seem to make no distinction between rentals OR profits in the derivation of GDP.
Which feels quite wrong to me.
Extra living space i.e. an extra rumpus room [Australia has the OECD's highest sq. m. per capital housing] verse an enterprise that makes a profit, and affords services & increases a national output & creates ongoing labour demand - it would seem like no comparison!
EXCEPT
Banks cannot find the securities they seek in business ventures, and so will only lend way less / considerably less vis-a-vis a home or property.
This means property development is a bigger notional multiplier...for awhile.
Until property prices collapse... as they did in the USA in 2007
