Aussie John worried APRA crackdown will have unintended consequences

by Julia Corderoy29 May 2015
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.”


  • by GC 29/05/2015 8:51:13 AM

    I agree with John 100%. Most foreign investors have cash and don't rely on our lenders. The other issue is that higher finance costs will lead to higher rents. Every time the govt. or govt. body fiddles with things they don't understand they screw it up. This is going back to the bad days. The banks know what they are doing - how about APRA and others let them get on with it. They have been highly profitable for over 100 years - without the assistance of any govt. body.

  • by Broker 29/05/2015 9:15:05 AM

    It has got to the point that I don't ever expect APRA to know what they are doing!

  • by JB 29/05/2015 9:20:29 AM

    For whatever reason, first home buyers are staying away from property. Rental demand clearly remains strong enough for investors to be interested. Tinkering by APRA & Banks to dissuade investors will lead to higher rents and further price increases in the Sydney market. The Banks should be left alone, the last thing we need is a flagging property market in an otherwise depressed economy.