Some experts are calling the new simplified lending rules a huge economic game changer which will deliver benefits for everyone, but I wonder if they could be more spin than win.

It sounds fantastic in theory – a debt led recovery, with relaxed lending restrictions freeing up huge amounts of credit and supercharging our economy back into growth.

In practice, however, the change from “responsible lending” to “responsible borrowing” won’t encourage banks and other finance providers to throw open their vaults, nor do they give us any incentive to race out and apply for more credit.

People don’t borrow more to get out of trouble, they spend less

Unless there is a bright light at the end of the debt tunnel, people faced with financial hardship tend to tighten their purse strings and spend less, not borrow to spend more.

Here’s a graphic example of how this works.

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There is a lot of noise being bantered about regarding how much money it takes to be rich in Australia.

And there’s often fuss made about all those rich greedy property investors.

So just how many Australian households hold an investment property?

The Australian Taxation Office recently released their latest stats on property investment, so let’s see how rich property investors really are.

Here is a quick summary…

According to Corelogic:

• There are 10.5 million dwellings in Australia with a total value of $7.1 trillion
• There is a total of $1.85 trillion in outstanding mortgage debt.
• 5% of Australian household wealth is held in housing

The Australian taxation office tells us that in the 2017-8 tax year (the latest statistics available)

• There are 2,207,893 property investors in Australia
• This means around 20% of Australian households hold an investment property and 80% don’t.
• The top investor age groups are:
  • 83% are

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