The Australian Prudential Regulation Authority's (APRA) demad to reduce investment property lending growth to 10 per cent has had an effect. Banks, particularly the majors, have reduce their discounts on investment property lending and some are also asking for higher deposits.
It is early days yet but, higher costs will slow lending for invesment properties which, may effect housing prices generally. In an article in the Sydney Morning Herald today, the Deputy Governer of the RBA, Philip Lowe suggests "the various APRA measures are having an effect". He goes on to say, "that household and property investors should take caution investing in housing. However, this could be opportune time for others who still have equity in their existing properties, to access that equity and purcahse an investment property with less competion.