The CEO of Westpac’s business bank, David Lindberg, has warned that sky high housing prices and reduced home ownership in Sydney and Melbourne is starving budding entrepreneurs of obtaining funding, posing a risk for the productive economy. From The AFR:
…housing remains the most common form of security required by banks to access business loans. Mr Lindberg said with “housing affordability a problem in the country, if you are young person and you want to start a business, and you are not lucky enough to have wealthy parents, you are going to have an awfully difficult time getting financing in a large dollar number for a new business that, at present, has no cash flows.”
