rate rise to crush 90,000 families, page-5

Many here would find this amusing and enjoyable about hearing of the mortgage stress. But the sad reality is that these new home owners bought into a market that is heavily distorted due to the massive tax advantages enjoyed by investors. The prices these people paid for their homes are roughly 40 to 50% more than if negative gearing did not exist. But it is here, and they had to borrow a lot to compete head on with leveraged investors.

That is not fair, and is counter productive to the economy in the long run. As I stated in the thread 2 days ago, raising interest rates is the wrong tool. The correct method would have been via the Henry tax review and to reduce (not eliminate) the tax rewards investors demand. Maybe from here on they should only offer negative gearing on new homes, rather than on existing homes. Also, not have any more than one investment property on the tax funded system.

However, the system is here, it's alive and has pretty much ruined the lives of many of our young families, while at the same time our government opens up our properties to cashed up foreigners.

Well done idi0ts ---- you've put this economy in a precarious state. Houses are unaffordable, yet if they fall in value then many will stop consuming simply because they won't 'feel as rich' as they did when their homes were worth squillions.

This is not something to be celebrated by those who are locked out of the market, as the economy can well turn on all of us in the end. Owning a home is a dream every Australian is entitled to. Why should anyone condemn families who aspired to have the same as others? If they are asking for too much credit then it's up to the banks to set the limits - not offer more! But that's what happened, they took everything that was given and more. It's only human nature to take more than what you need. However, the banks know the limitations of the borrowers - they have the data, the history and the figures as they've seen the results of getting it wrong. Yet they threw caution into the wind, and gave plenty of credit knowing full well that interest rates would hike a lot faster than the borrowers could absorb.

Those who have to sell out will most likely be owing money afterwards, effectively destroying their chances of a quick and easy recovery.

This government knows it's done wrong, but finally the people have all woken up 'as one' to see the truth. However, it's too late as far as I'm concerned!