The RBA has said that investors should be 'realistic' about housing prices in a new era of slower growth, as lower interest rates force buyers into the...

Livewire News

The RBA has said that investors should be 'realistic' about housing prices in a new era of slower growth, as lower interest rates force buyers into the property market. In its semi-annual financial stability review report, released today, the bank warned about the prevalence of self-managed superannuation investment in property - which it described as a vehicle for speculation that threatened to exacerbate the property cycle. The RBA notes the increase in property activity, particularly in NSW, which it said should be expected given the sharp reduction in interest rates, the report said. The central bank said that investor housing activity in NSW has been particularly sharp with the investor housing loan approvals accounting for 40% of loan approvals in the state - a level not seen since 2004. The RBA warned banks against loosening their lending standards in an environment of low credit growth. (VIEW LINK)


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