In the roaring 2020's, the credit card, afterpay, taxes, electricity, bank of mum and dad will all be in default before the home loan. How many builders waited to zero cash before entering administration... its not just a housing issue.
32:00: I haven't heard that "rising rates" signal from the RBA at all. The last statement from the RBA always has that disclaimer. It's just like any other worthless disclaimer.
You haven't got a 4th scenario Martin? Where the RBA has the cash rate below the inflation rate, so it makes sense to pour money into real assets like residential property? While immigrants continue pouring in, forcing a hunger games situation for those seeking housing?
Yes, quite unnerving to note the agreement Albanese made with India. Basically Australia is set to become a 2nd Indian state. And it's difficult to understand the reason for this. We've got this strange Voice thing happening, whilst the first peoples land is set to completely filled, by the turn of the century.
Yeah that's a big problem. We've got this country into a situation, where banks only lend for "risk free" loans. And that seems to be existing residential property. In the old days, when housing was 3 times income (or even 2.5 times income), it was possible to save enough money so the loan was risk free. Today, with property been 9 times income or higher, that's no longer possible.
@williamcrossan9333 it is low risk compared to buying a house in Sydney at 5% deposit. Australian people lent 180billion at .1% interest to 4 big banks, proviso was support business through covid and over 90% was used to push residential prices up! I'm sick of Labor Lib and especially Nats, here in Coffs, Government privatising our exclusive best on the coast public land against community saying it's for affordable housing! Shameless grab for $ for mates. Min prices will be 1.5mil where no other homes exist yet. Policy is the cause of the wealth inequality from insane housing
Unfortunately, the utterly crazy immigration levels are making one hell of a mess of things. Wage growth, whilst good, seem to be flat-lining, whilst housing prices and rents are rising fast.
Yeah, I see comments like this, but again not reflected "on the ground" from what I'm seeing. I don't like the situation one bit, but I'm not denying what I'm seeing. @@redsed1565
Hi Martin, do you have a chart with rental and mortgage stress against the OFC or average bank variable rate? I'm just curious to see the lagged relationship between them.
Well, it's difficult to know what to make of this data. Right now, Brisbane houses are re-entering FOMO. Perth's off the scale. Adelaide strong. Sydney strong. Mortgage cliff? What's that?
Doesn't the bond rate indicate the direction of future interest rates? Don't the expectation of future interest rates affect current housing loan size and therefore house prices?
They'll fall when they fall in the USA. The Reserve bank doesn't mention how much they are limited by US interest rates but I think it's quite a bit. No country's interest rate is independent of the rest of the world.
