Foreign property buyer bust spreads to other banks

Tuesday, 10 May 2016

Funny how it goes from saviour of the nation to dagger through the heart in just a few short months, from the AFR:

Flagging real estate markets are under pressure from banks cutting off credit to foreign borrowers and warnings from a top property executive that a Labor Government’s crackdown on negative gearing could trigger an economic downturn.

Bendigo and Adelaide Bank, Australia’s fifth largest, told more than 30 mortgage managers and thousands of brokers to immediately stop lending to foreign borrowers and exclude foreign-sourced income from local real estate deals amid growing concerns about fraud and possible money laundering.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.