In May there has been a subtle, but important change in the markets.
Real Estate
The regulator APRA finally started to push the banks to be more careful about real estate investment lending.
Slowly the banks start to tighten the rules around “investor finance” (which is 80% of new finance in Sydney and 65% in Melbourne.
This will mean that the rally in housing market will start to flatten or even go down as there are less investors looking for properties – or the same number of investors, but with less capital available
Share Market
As the banks make 70% of their property from lending will start to lose their shine (as Westpac showed in the latest results).
So the big yield play will give way to more cyclical position and secondary yield play such as regional banks
The ETF model strategy starts to be in danger.
investorpolitico 