Gottiboff with some property texture:
…in the short term it is creating extreme nervousness among bank staff making loan judgments. They are petrified of making a mistake that will cost them their job. And that nervousness is multiplied by the APRA restrictions.
…A person who bought a one-bedroom inner Sydney apartment at the top of the boom would have paid around $800,000. Today they are watching people buy an equivalent new apartment for around $680,000 — a fall of around 15 per cent. But if that $800,000 buyer wanted to sell their “used” apartment to an investor that investor will not be able to claim deprecation so the price would fall another 5 to 8 per cent so the price might be in the vicinity of $630,000. The original buyer has lost over 20 per cent.
