Rent crisis, property prices, borrowing capacity and fundamentals – how will it affect you?

It has certainly been a wild ride for property investors over the past 6 years. In 2017 and 2018, the banking regulator demanded banks reduce the volume of interest only loans, particularly to investors. The media called this the “interest only cliff” and predicted that many borrowers would face financial stress when loan repayments switched to principal and interest resulting is higher arrears and default rates. It didn’t. Then in 2018-2019, Bill Shorten (you will recall that eve...