Property investors battered by a 'perfect storm' of falling prices and tighter credit
In the heady days of the property boom, as big city house prices jumped ahead in leaps and bounds, investors reigned supreme, swatting away first home buyers with their superior purchasing power.
According to property investor Michael Ilieff, who arrived in Australia as a Bulgarian refugee almost 30 years ago with $8 in his pocket, the tables have well and truly turned.
A combination of hard work, negative gearing and interest-only borrowing helped Mr Ilieff build a life through property, but right now his investment record spanning decades counts for nothing.
He wants Westpac to extend his interest-only loan on a property bought well before the Sydney and Melbourne property boom took off.
Even with prices falling, the property is worth much more than he bought it for, but the bank is treating him like a newcomer.
"Everyone (investors) are suffering from that," he told The Business.
"Just the fact that they're asking you how much you're spending on your Netflix, how much toothpaste do you use.
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