No rapid credit growth may be a good thing. The key word being rapid. However at some stage normality will return where a 5 percent return pa on real estate will help the long term real estate investor to see good leveraged growth over the long term. The skyrocketing rises we saw just before the GFC were an aberration but a lot of the strategy of building wealth for decades before that were based on leveraged low annual returns for the property investor.
Anyone thinking the banks can hold onto their returns by sitting on their hands is totally deluded. I have had approaches from my banker to borrow to invest. They never approach poor prospects but make a habit of offering funds to those with the correct credentials. Never been different.
For anyone to say we will not see this or will not see that is foolhardy.
