"IT in itself is a sign of fear even amongst spruikers and just another confirmation that 'end is near'...or should be near were it not for fear of banks faltering so ... 'govt intervention'..."
lets get to the facts....
The Government stepped in and bought residential mortgage backed securities from banks.
This allowed or freed up liquidity in the market so that banks could keep lending.
No massive defaults, no subprime mortgages, no nothing other than less money floating around.
There were no funds on the markets to buy during the GFC and any available was too high a cost for a lender to consider.
So the Goverment provided the banks with an alternative/part time solution.
We will buy your A rated mortgages from you......and you then use the funding to advance further loans.
They also provided Government guarantees to depositors of funds into banks.....which really meant very little other than more money going into deposits.....as preoiple do get brainwashed by the big "Gov guarantee" slogan.
I guess if you like 5% year returns then why not jump in.
so again more money for the banks to have to lend out.
The FHOG has been around for a long time.....its not like it started 6 months ago.
yes ok they increased it for a while.....and maybe it provided some extra stimulus in the proprty market.....but only at the lower end.
governments/councils/banks/investors/builders etc etc all benefit from rising house prices.
yes some find it hard to get in or have to save longer or have to rent......but majority get on with it knowing the main bodies running the country have an interest to keep it stable and fruitfull over the long term.
The equity built over time gets distriubuted back into the economy at some stage....
its a whole new property worlfd now with so much information at ones fingertips.
That in itself has provided more players to the market.
As it has done for online brokers like commsec etc for the sharemarket.
