Kolenda: Soft property market damages equity

by Caroline Dann03 Sep 2012

1300’s John Kolenda is blaming the soft property market for increased difficulty in accessing equity.

He claimed post-GFC conditions – namely, less competition between banks, a soft market and tighter lending practices – dealt a blow to both equity and accessing a loan altogether.
“We are all aware of the effect of the soft property market on investors but homeowners also suffer when the market is weak even if they are not planning to sell,” Mr Kolenda said.
“In the past, thousands of Australians have used their home equity to do renovations, consolidate personal loans and other debts or deal with financial emergencies,” he said.
He added the “well-worn path of getting a home re-valued and then using that to get a credit line from the bank was much harder to access [these days].”


  • by GB 4/09/2012 9:51:51 AM

    in other words...the ponzi scheme of revaluing assets higher and withdrawing and spending the equity is over. Now people actually have to pay back their debts the old fashioned way, with income. They can no longer depend on ever increasing asset values. Get used to it John. Its not the property markets fault...its property speculators expectations of easy gains for ever that are to blame