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3,404 Posts.

23/05/15

18:53

Post #: 15338513
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Originally posted by tgn01 ↑

NAB argue that there is a high demand and short supplies for housing and therefore it doesn't support the bubble theory.
Well what's wrong with this argument? Of course there a high demand for housing because everyone want a roof over their families head but the thing is can everyone afford to pay for this demand or they have to leveraged up their nose to pay for this demand. And this is the problem where the market is creating a situation where we are buying real estate beyond our means even though it is a necessity part of a ordinary family.
He went on to say a 30% correction is not a bubble bursting. Well for average working family buyer on 600k mortgage 30% loss is 200k of hard earned saving lost or 4 to 10 years of saving gone to the pocket of speculators who are mainly oversea developers and investors who bought the property and sell on to the new buyers in the next few years.
Meanwhile all money are going into paying mortgage and not spent on the real economy. High debt and leveraged folk will drive up price and cost of living to cover their high debt and thereby drive up inflation. High inflation make the cost of doing business and production less competitive in our country. Wham bam double whammy for the economy growth
And there goes the bubble bursting.
Just my opinion.

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Average mortgage is $600k???? Really??? Geez why can't you guys make a post without having to stretch the truth so much....?
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Credit fueled housing collapse, page-19

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Credit fueled housing collapse, page-19

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