The Bear Room, page-2823

I keep reading thar the Australian property market cannot crash due to record immigration levels, but the facts are the vast majority of immigrants are of limited financial means and while they need somewhere to live its more often than not low level rental accomodation or flat sharing.

The key component is housing affordability as a percentage of household income and speak to most young mortgage holders and they have exhausted their savings trying to maintain mortgage payments.

Although records show only 30 percent of hones are subject to mortgage it's irrelevant as once forced sales start its a domino effect and housing will crash.

The " wealth effect" where people consider their houses as an ATM will vanish overnight and a marked drop in consumer spending will follow.