MartinLuther

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.

pomtastic

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.

balkanghost

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.....

MartinLuther

Isn't he climbing Kosciuszko at the moment?

pomtastic

Yes and raising money for Australian's homeless.

The fact that Steve Keen was the only Australian who warned of the GFC seems to of been forgotten.

MartinLuther

But that's not the principle reason he's doing it

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.

Steve2009

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.

MrCro

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

77hil

They must be real crapholes.

Swerv-o

Aye. It's grim up North...


S

coolshadows

not necessarily, maybe just full of working class families who aren't wealthy.

balkanghost

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.

Vash the Stampede

Mate, one of them's Burnley. That's the sort of place inhabited by "working class" people who don't actually work. 13% of Burnley's population is on incapacity benefit. 13%!

coolshadows

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.

pomtastic

But you pay $400K for a complete craphole in Perth.