Whenever someone gives you advice – try to find out what their motive is.
Last week we were inundated with media articles about an imminent collapse in property prices.
This was based on research carried out by two men in the financial services sector – one of whom has a book coming out soon.
Over the many years I have been brokering, there has been one constant; the banks’ assessors have eyes like hawks – it would be impossible to get anything shonky past them.
One of the reasons why Australia coped during the GFC was because our banks had prudent lending criteria – unlike in the US, where just having a pulse was enough to get a loan.
This means that, when banks lend money, their decision to do so is based on sound principles – which should give us confidence in the property market.
Of course, there will be winners and losers in the property market.
But the only person I saw gaining from the recent flurry of media attention was the guy who was spruiking his book.