housing debt Australia
Aug 15th 2003, 1:40 pm
#1
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housing debt Australia
I know many think they are carrying far too much of a mortgage back in the UK but is it different here.
HOME borrowers are only a couple of small interest rate rises away from facing the same debt repayment bills that Paul Keating had imposed with an 18 per cent interest rate at the end of the 1980s.
But the official interest rate would only need to reach 5.75 per cent – an increase of one percentage point on its level today – to recreate the Keating debt burden.
The calculation, using published data from the Reserve Bank this week, shows how the nation's record credit splurge has brought households to the same point reached at end of the last housing boom.
Only this time, households have done it to themselves because the Reserve Bank has left the official interest rate at 4.75 per cent for more than a year.
The Reserve Bank numbers show that a one percentage point lift in interest rates would translate to a slightly higher increase in the household debt burden across the economy.
Economists interpreted this week's monetary policy statement as signalling the next move in interest rates was likely to be up, not down, although a change was not expected before next year.
"But if the US upswing continues, and house price inflation and credit growth continue to trouble the Reserve Bank in the domestic economy, the tightening may be sharper and sooner than we now expect," John Edwards, the chief economist of HSBC Bank Australia said.
HOME borrowers are only a couple of small interest rate rises away from facing the same debt repayment bills that Paul Keating had imposed with an 18 per cent interest rate at the end of the 1980s.
But the official interest rate would only need to reach 5.75 per cent – an increase of one percentage point on its level today – to recreate the Keating debt burden.
The calculation, using published data from the Reserve Bank this week, shows how the nation's record credit splurge has brought households to the same point reached at end of the last housing boom.
Only this time, households have done it to themselves because the Reserve Bank has left the official interest rate at 4.75 per cent for more than a year.
The Reserve Bank numbers show that a one percentage point lift in interest rates would translate to a slightly higher increase in the household debt burden across the economy.
Economists interpreted this week's monetary policy statement as signalling the next move in interest rates was likely to be up, not down, although a change was not expected before next year.
"But if the US upswing continues, and house price inflation and credit growth continue to trouble the Reserve Bank in the domestic economy, the tightening may be sharper and sooner than we now expect," John Edwards, the chief economist of HSBC Bank Australia said.
Aug 15th 2003, 2:35 pm
#2
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Joined: Mar 2003
Posts: 4,432
Re: housing debt Australia
Originally posted by pommie bastard
I know many think they are carrying far too much of a mortgage back in the UK but is it different here.
HOME borrowers are only a couple of small interest rate rises away from facing the same debt repayment bills that Paul Keating had imposed with an 18 per cent interest rate at the end of the 1980s.
But the official interest rate would only need to reach 5.75 per cent – an increase of one percentage point on its level today – to recreate the Keating debt burden.
The calculation, using published data from the Reserve Bank this week, shows how the nation's record credit splurge has brought households to the same point reached at end of the last housing boom.
Only this time, households have done it to themselves because the Reserve Bank has left the official interest rate at 4.75 per cent for more than a year.
The Reserve Bank numbers show that a one percentage point lift in interest rates would translate to a slightly higher increase in the household debt burden across the economy.
Economists interpreted this week's monetary policy statement as signalling the next move in interest rates was likely to be up, not down, although a change was not expected before next year.
"But if the US upswing continues, and house price inflation and credit growth continue to trouble the Reserve Bank in the domestic economy, the tightening may be sharper and sooner than we now expect," John Edwards, the chief economist of HSBC Bank Australia said.
I know many think they are carrying far too much of a mortgage back in the UK but is it different here.
HOME borrowers are only a couple of small interest rate rises away from facing the same debt repayment bills that Paul Keating had imposed with an 18 per cent interest rate at the end of the 1980s.
But the official interest rate would only need to reach 5.75 per cent – an increase of one percentage point on its level today – to recreate the Keating debt burden.
The calculation, using published data from the Reserve Bank this week, shows how the nation's record credit splurge has brought households to the same point reached at end of the last housing boom.
Only this time, households have done it to themselves because the Reserve Bank has left the official interest rate at 4.75 per cent for more than a year.
The Reserve Bank numbers show that a one percentage point lift in interest rates would translate to a slightly higher increase in the household debt burden across the economy.
Economists interpreted this week's monetary policy statement as signalling the next move in interest rates was likely to be up, not down, although a change was not expected before next year.
"But if the US upswing continues, and house price inflation and credit growth continue to trouble the Reserve Bank in the domestic economy, the tightening may be sharper and sooner than we now expect," John Edwards, the chief economist of HSBC Bank Australia said.
Aug 15th 2003, 2:42 pm
#3
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Re: housing debt Australia
Originally posted by Megalania
Anyone having 50% home equity or more and needing a first mortgage want to borrow some dough on a variable rate?
Anyone having 50% home equity or more and needing a first mortgage want to borrow some dough on a variable rate?
Aug 15th 2003, 2:47 pm
#4
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Re: housing debt Australia
Originally posted by pommie bastard
How variable .
How variable .
Aug 15th 2003, 2:50 pm
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Re: housing debt Australia
Originally posted by Megalania
Not five finger discount.
Not five finger discount.
