I read in the paper on the weekend the Fed government was not going to rule out extending the FHOG, in order to try and stop shrinking house prices. It was in an article that outlined negative equity, a lady had a loan for $350,000 and a home worth $290,000.
I also saw a feel good TV commercial from Loan Market Group (the same group with that "survey") trying to get FHO into market by pushing the grant expiry.
"AUSTRALIA might have avoided the subprime excesses of the US but many are suffering a terrible hangover from Sydney's cooling property prices."
Here, dreams of fast money based on an unusual "call option" to secure unbuilt units have degenerated into a nightmare of unmet liabilities for small investors who overcommitted at the peak of the boom, and for the developers who gambled they would be able to pay.
