unbalanced forum, page-7

"Perth is getting absolutely smashed there is no doubt about that and it is the most economically sound state. even someone who cant read can earn 200k over here if s/he puts their mind to it. the question is why? and the answer is credit growth."

I'm sorry, but that is such a poor summation of what is going on in Perth right now.

The reality is that population growth in WA is extremely strong. Personal earnings are rising, and fortunes are still being made in resources on a daily basis.

While I agree that property is on the nose right now, its not because of the restrictive practices of the banks. Instead it is because the buyers are getting canny. Sellers over indebted themselves in 2007, used their property like an ATM machine and expected the prices to keep rising. Some of them are now forced sellers (over and above sellers for normal reasons ie death, divorce etc) which has led to an over supply situation.

Banks are lending just as much money for those who are deemed to be a good credit risk, added to which there is an awful lot of money sitting waiting on the sidelines. Given a sniff of the supply situation changing, the perth market will be off to the races again. Mark my words...