regarding residential property, tax payers are the ones that are going to fork out all those dollars and "pay the bill". Australians are the most leveraged people on the planet holding very unproductive assets yielding 1-2% at best and negatively geared at worst
Sydney house prices are currently at 40-45X income and melbourne is slowly catching up. Thats more than double, close to triple (2.7x) US figures or anywhere else in the world.
SCOMO had this to say about it yesterday
but quite frankly i dont buy a single bit of it, the govt cant fork over billions in stimulus every 4-6 months. In Australia the real issue is the residential housing market, jobkeeper only delayed the envitable and is doing a very good job at it actually. Once debt becomes unserviceable, the real pain will ensue. There is a lot talk of cutting stamp duty to increase the housing turn over rate. Australia residential consumption of the last year has looked alright but that was largely due to refinancing churn. The turnover rate has actually been steadily declining for years and low rates and hype is simply whats keeping it together.
XJO at 6000 is 14% down from ATH. Australia housing only down 0.7% since covid???? The real pain wont come from the stock market but from those highly leveraged individuals who overpaid for a property because of low rates and 5% down payment.
(20min delay)