banks have not stopped lending, page-20

  1. 7,178 Posts.
    Here are my reasons as to why some people have stopped borrowing..

    1. Prices declining, waiting for prices to stabilise before they jump in.

    2. Can’t borrow as much as before and the current pricing remains too high to afford what they’d like so a sitting it out saving for a larger deposit and prices to fall to get a better property than they currently can afford.

    3. Rents moderating and interest rates expected to go up so benefits of buying now are attractive with the risk of further declines.

    4. Investors see risk of fall prices and rents so they are sitting on there hands.

    5. Add to that threat of NG and Cap Gains tax changes. On the sidelines waiting on political/tax outcome.

    6. Some flippers have recently been burnt.

    7. Employment and income uncertainty rising as population growth outpaced job creation and recession pressure risk increase due to current house price declines and expected slow down in investment spend.

    Can anyone else add to the list..
 
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