This is a blog topic I thought would never be covered on my sustainability ‘GreenerMe’ blog.
However last week it happened – the correlation between living sustainably and a property investing benefit.
The media has been so focused on the Sydney property boom that little is reported about the current property investor credit crunch. Combank, NAB, ANZ and Bankwest have announced that they are tightening lending criteria for property investors and raising interest rates on variable investment loans (new and existing). AMP have even announced that they will stop lending to all property investors indefinitely.
This post is not about why this is happening but about our own experience with the restrictions in seeking a loan.
One way lenders are tightening their lending criteria, is by asking investors to prove their monthly, personal spending.
We were given a budget form, to fill out what we spend on food, clothing and household items etc. We filled the form accurately however once completed we were concerned. My husband stated what we were both thinking “they are going to question the small amount we spend in these areas”. Therefore after discussion we decided we would add notes on the form explaining that we value sustainable practices i.e. buying 2nd hand, recycling, reusing and restoring. These practises not only save the Earth’s resoures but also our savings.
Having a public blog of my sustainable living journey since 2008, certainly backed up our personal spending claims.
Despite the credit crunch our loan was approved and I am sure our sustainable living helped – even if just a little.