If you are new here, be sure to subscribe to my RSS feed. That way, you will receive new blog posts or articles by email without having to check this site each day. Thanks for visiting!

Olly Newlland, one of our most well-known property icons, lays a good chunk of the blame for the current property slump 'fairly and squarely' on the New Zealand banking industry - and I can't say I blame him, either!

I think it's disgusting that major banks who were - not that long ago - stampeding businesses like Olly's and mine for "home loan referrals", are now 'crushing the life out of many of them' through unfair business practices.

Take for example, a client of Olly's who unwittingly used their home as security for a business loan. They borrowed 90% against the value of the family home. The bank treated the loan as a business loan and charged them business rates of 22% pa + fees and charges, bringing the total to 24% per year!

Those poor people had to sell their home to relieve the pressure!

When are New Zealanders going to say "enough is enough???"

Forgive my frustration and term of phrase here, but… we're a lame bunch of $#@!*& when it comes to standing up to monopolistic institutions like banks in this country. We bitch and moan over a quiet cup of tea to our other halves…and that's the end of it! Yet, there are many countries in other parts of the world where sheer, unabated anarchy would result from the application of usurious interest rates on business loans, overdrafts and the like!

I couldn't agree more with Olly when he said that "Dr Alan Bollard and the politicians need to come to grips with the fact that a low interest regime must benefit everyone - businesses as well as home owners".

If you're in business for yourself and feel the same way as I do - or perhaps have a different view - post your comments below - I'd love to hear from you.