acorn , Thank you for yr point of view. Banks/institutions lend money to those with good collateral. Banks take a risk which is fairly well calculated in their favor. Banks hold the titles to cover the debt till mortgage is discharged . Hi rise investors have a number of projects going on all the time.
The banks won t be worried if the property value drops by say 30% as long as the payments are being met. When they are not we see a forced sale . We have seen hi rises on the Gold Coast in trouble and forced sale of unit below the original asking price .Enough to keep cash flow.
IMO, Go to shopping centres, and see how many shops have closed doors or, been vacant for months on end. Go to restaurants, and shops and see for yourself how full these are.
How many new housing subdivisions do you see around you ?
Now all that is my indication of state of economy.
Every state is different .What applies to Perth does not apply the eastern states .
