Episode 199 | How Can APRA Cool Down the Property Market? | Chris & Veronica

Whenever the property market booms, frustrated buyers often say, “This can’t go on! Surely this has to stop soon,” and it will. Booms and bursts can’t go on forever!

This October, APRA has finally made a move to try and cool down the raging property market. Naturally, questions like, “Will this work?”, “What else can they do if it doesn’t?” and “Why did they need to act on it?” have surfaced and today, we’re going to discuss how APRA’s new measure will likely play out.

If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au!

See you in the episode!

Episode Highlights:

1. What does the term “macro prudential measures” mean? [01:25]

2. APRA’s increased serviceability measure [02:44]

   • “Jawboning” to impact confidence [06:30]

3. How much will APRA’s new measure impact the property market? [07:00]

   • Evident flaws in banking calculators during 2012-2015 versus now [09:17]

   • Talks surrounding the DTI limit [10:22]

4. What can APRA do if their new measure doesn’t have the desired impact? [11:59]

5. The struggle with slowing things down without impacting first home buyers [14:21]

6. Is this move a pre-emptive strike to keep investor participation low? [15:04]

7. Why are variable rates still falling & what’s causing it? [21:52]

8. Turnarounds are huge in the broking space [23:44]

9. Look at transactions, not listings! [25:19]

   • Where are the big portions of transactions happening? [27:23]

10. What decision fatigue can cause some investors to do [29:13]

11. Some buyers agents are making alarming purchases at the moment [30:37]

12. The difficulty with identifying a good buyer’s agent [36:28]

13. The two factors that can really slow down the market [41:39]

14. APRA’s measure & the ridiculous amount of growth in the market [43:52]

15. Chris’s property dumbo [47:58]

16. Veronica’s property dumbo [52:29]

Links from the Show:

• The Growing Housing Affordability Crisis | Michelle Adair (Episode 191)

Connect with Us:

• Looking for a Sydney Buyers Agent? www.gooddeeds.com.au

• Work with Veronica: https://linktr.ee/veronicamorgan

• Looking for a Mortgage Broker? www.wealthful.com.au

• Work with Chris: hello@wealthful.com.au 

• Send in your questions to: questions@theelephantintheroom.com.au 

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