It is the second blow to property development in Wagga after the flour mill was put up for sale almost two weeks ago, and a sign that money is becoming increasingly difficult to borrow.Fitzpatricks Real Estate has cited the current Australian economic climate as the reason to sell the Sturt Street land.Julian McLaren, senior adviser for Money Matters says the collapse of the two proposals is a marker of the beginning of tough economic times for Wagga residents.“The recent sale of two major property developments is a fall out from the sub-prime mortgage crisis, resulting in a subsequent credit squeeze.“It’s getting harder to borrow money, especially high risk investments, which property development is often considered.“People are become more risk-averse all around the world, money is just harder to get,” Mr McLaren said.However, how Wagga will react to the international economic downturn is hard to predict.“Is Wagga strong enough to withstand the squeeze? … I don’t know.“It’s a question on whether Wagga is a strong enough micro-economy to withstand the overall deterioration of the Australian economy. If we get a sustained break in the drought, so the growth in the rural economy covers the Australian economy drop, we may just be insulated from the fall out.”If the drought does not break, Wagga residents could, like the rest of Australia, be in for some tough financial times, a break from the prosperous economic growth we have experienced in recent years.“It is possible housing prices will come off the boil and individuals will spend less, hold off on investment for a while and just tread water,” he said.“With reduced credit available, fewer properties will be developed which will squeeze the rental market, diminishing supply and raising rental prices.”