Housing bubble in Australia
#946
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Housing bubble in Australia
As they have raised the percentages required as a deposit and tightened other lending rules; I think you can say they have taken some notice.
#947
BE Enthusiast
Joined: Nov 2009
Location: Dullsville
Posts: 672
Re: Housing bubble in Australia
Apparently, the largest share of the mortgage market these days is refinancing. This is where people tap into their equity and get loans for home improvements (good debt if done correctly), cars, holidays (bad debt) or just even to pay off their accumlative credit card bills or schooling fees. People are basiclly living beyond their means and where does this end up? The US and other countries got into deep poo because people refinanced on the idea that house prices only ever go up and they could never lose. It's only when the tide goes out, you find out who's been swimming naked! If the tide goes out in Aus, I'll bet you'll find plenty of skinny dippers, even the ageing Baby Boomers who have helped their kids to buy a house, refinanced for holidays and new kitchens and such.
In the good old days, the idea was to pay off your mortgage as fast as possible but it's no longer the case as your house is used like an ATM.
In the good old days, the idea was to pay off your mortgage as fast as possible but it's no longer the case as your house is used like an ATM.
#948
Lifestyle Development
Joined: May 2007
Location: Budapest, Melbourne, Yarrawonga & Antalya
Posts: 353
Re: Housing bubble in Australia
Big four banks gorge on house mortgages. THE big banks may soon be forced to curb sales of mortgages after a feeding frenzy on housing over the past 18 months has lifted their share of the nation's property market to record levels. Any steps to slow mortgage sales are likely to hit first-home buyers hardest as they are considered riskier and surging property prices have forced them to seek larger loans
Meanwhile small medium business the drivers of employment cannot borrow.... unemployment figures are window dressing, including underemployment closer to 8%++
Where is Robert Peston? In Australia he is known as Steven Keen from UWS who had predicted a fall of 30-40% in property prices but doe snot get much media time.....
Meanwhile small medium business the drivers of employment cannot borrow.... unemployment figures are window dressing, including underemployment closer to 8%++
Where is Robert Peston? In Australia he is known as Steven Keen from UWS who had predicted a fall of 30-40% in property prices but doe snot get much media time.....
#949
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Housing bubble in Australia
Big four banks gorge on house mortgages. THE big banks may soon be forced to curb sales of mortgages after a feeding frenzy on housing over the past 18 months has lifted their share of the nation's property market to record levels. Any steps to slow mortgage sales are likely to hit first-home buyers hardest as they are considered riskier and surging property prices have forced them to seek larger loans
Meanwhile small medium business the drivers of employment cannot borrow.... unemployment figures are window dressing, including underemployment closer to 8%++
Where is Robert Peston? In Australia he is known as Steven Keen from UWS who had predicted a fall of 30-40% in property prices but doe snot get much media time.....
Meanwhile small medium business the drivers of employment cannot borrow.... unemployment figures are window dressing, including underemployment closer to 8%++
Where is Robert Peston? In Australia he is known as Steven Keen from UWS who had predicted a fall of 30-40% in property prices but doe snot get much media time.....
#951
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Housing bubble in Australia
I think a few on here remind us from time to time. Nobody seems to remind us the warning he gave which has led to him climbing Kosciuszko.
#952
BE Forum Addict
Joined: Mar 2009
Posts: 1,412
Re: Housing bubble in Australia
Only if the long term value added by the improvements is similar or greater than the cost of the improvements. In a bubble at bubble build prices this is unlikely.
#953
BE Enthusiast
Joined: Jun 2008
Posts: 730
Re: Housing bubble in Australia
These figures on news today, average houses prices for cheapest streets to live in UK!!!
Street
Locality
Region
Average value
Fernhill
Mountain Ash
Wales
£28,600
Oxford Street
Brierfield
North West
£32,800
Ann Street
South Bank
North East
£32,900
Edward Street
South Bank
North East
£34,200
Scarborough Street
Middlesbrough
North East
£34,400
Redcar Road
Middlesbrough
North East
£34,400
Victoria Street
South Bank
North East
£35,600
Wood Street
Burnley
North West
£35,700
Elmwood Street
Burnley
North West
£35,800
Altham Street
Burnley
North West
£35,900
Street
Locality
Region
Average value
Fernhill
Mountain Ash
Wales
£28,600
Oxford Street
Brierfield
North West
£32,800
Ann Street
South Bank
North East
£32,900
Edward Street
South Bank
North East
£34,200
Scarborough Street
Middlesbrough
North East
£34,400
Redcar Road
Middlesbrough
North East
£34,400
Victoria Street
South Bank
North East
£35,600
Wood Street
Burnley
North West
£35,700
Elmwood Street
Burnley
North West
£35,800
Altham Street
Burnley
North West
£35,900
#957
Lifestyle Development
Joined: May 2007
Location: Budapest, Melbourne, Yarrawonga & Antalya
Posts: 353
Re: Housing bubble in Australia
Housing market to weaken as buyers retreat. High auction clearance rates and record prices notwithstanding, official figures show the number of loans to buy houses in Victoria slipped from a record high of 15,300 in September to 13,400 in February after sliding in six out of the past eight months. Victoria's slide of 12 per cent is the least severe in the nation. In New South Wales the number of loans slid by 27 per cent and in Queensland and South Australia by 25 and 29 per cent. ''This will lead to a slowing of price growth, no question about it,'' said Real Estate Institute national president David Airey.
#958
Re: Housing bubble in Australia
#959
Re: Housing bubble in Australia
I think I remember a few year ago (during the BOOM!) that a whole row of houses there couldn't be sold and some guy bought the whole lot for £12k. Lucky for him I think he sold it to a load of Polish migrants afterwards.