real estate to hot up on stock market depressd, page-17

sl74

Agreed, and when intrest rates hit 17.5% the world wasnt this bad off so i think its very posible interest rates could double or go higher than current rates.

this is going to totally kill any one and anything carrying debt. I remember saying a couple months ago, that we will see companies get hit over the next 12 months, so far look at citi bank, and CNP.. there are a few others as you know like RHG.. theres going to be more throughout 2008

I dont know how people can say it hasnt and wont effect the property market in australia.. that is just sticking your head in the sand. its a slow knock on process and will probably unravel more towards end of this year or through 2009 for residential property owners.

home buyers are in the biggest levels of debt, on avarage acording to the statistics $250K is the average if interest rates hit $17.5% again your talking about interest payments of $40K each year + you need ot pay off some of that principal and also pay for food, petrol, clothing and everythign else.

even the average income earning $42K P.A (according to last fiscal years stats)gets paid about $35K after tax, they are not going to survive this, if you say their average home loan is $150K that could be up to $30K P.A in repayments on their loan leaving them $100 a week to live on.

Property will be sold hand over fist, and no one will be able to borrow enough to pay the current prices, or just wont want ot take the risk.

like the US its gonna happen here and house priecs will have a big correction from this in the sky prices back down to earth