Wow. Help for couples earning up to AUD 200k (€125k) and the maximum loan won’t even buy the median house. Talk about stoking the fire. Australia will surely regret letting everyone put their pensions in property. It’s effectively committed to blowing an eternal asset bubble.
The article goes to to lay out the retail sector issues.
Looks like the Aussies are stepping on the gas.
Interesting. We were told last summer by family that this was the time to buy. But all there was was a lull, a 10% decline wasn’t very atttactive. We are overseas and the prices have been live dynamite for years. Decision time coming up though.
A rate cut during the week will surely see some +ve moves in property over the coming weeks.
Perth rental market tightening up nicely. Great buying opportunities there atm.
Analysis from the RBA found around two-thirds of home-owner debt is held by the top 40% of income earners. Yet, if the downturn is prolonged and there is a broadening of job losses across other sectors, this would have larger impacts on the housing market.
“Australia’s high household debt was never going to be a cause of a recession, but it would quite possibly magnify the impact of anything else that caused a recession,” said Saul Eslake, an independent economist who has analyzed the Australian economy for 40 years.
“The risk isn’t so much to the financial system that there will be a wave of defaults,” he said. “But rather the risk was to the economy arising from what highly indebted households would do to avoid defaulting, which is substantially cut back their spending.”
10+ year old thread…