APRA’s crackdown on investor loans could have unintended consequences by favouring foreign investors, says Aussie founder and chairman, John Symond
Speaking to Ross Greenwood on the 2GB Money News
program, Symond said APRA’s crackdown, which has seen many major and non-major banks implement measures to wind back foreign investors, may unintentionally discriminate against local investors.
“I am just worried that there is going to be unintended consequences here because you might find these foreign investors have even a bigger go because regular Australians are going to find it tougher to get through the hoops to be able to borrow money to buy an investment property, in most cases their future nest egg,” he said.
"Without picking on the Chinese, they have had a huge spike on new housing, something like $12 billion in last 12 months - now this doesn't come under APRA as a lot bring money from China.
"They are certainly help driving the pricing up and driving the shortage of properties available for first home buyers and people looking to buy their home in Australia.
"It is not just the Chinese there are other foreign investors who love Australia.”