butcherboy Just a point about the US sub prime being caused because of the premise of home ownership for everyone. Those loans were not guaranteed in any form. No assets or justifiable income to support the loan. Also, a defaultee can just hand the keys back and walk away from the loan. Hardly effective criteria to ensure mortgagees fulfill their obligation, which is, service your loan. Couple that with the loan books being sold on several times and eventually some dumb arse institutions were left holding the parcels when the music stopped. Try defaulting in Australia and see how far you get. Now, as to $150k putting people on struggle street, no chance which ever way you look at it, unless you CHOOSE to put yourself on struggle street. Get serious people, it's not exactly an income that inhibits life's luxuries LOL Our Premier, Collin Barnett was berated today for saying that young couples should not expect a $500k house first up. That they should accept a more humble dwelling. You have to admit, you can't argue with that! He has squat to be berated about. Well said Collin, TU Suppose he got the new housing industry's nose out of joint. If we keep relying on clearing land, building junk boxes and then packaging the loans to people who peg the for sale sign at the hint of a rate rise, then we could end up with a mini sub prime. Today's rates, add 3% and maybe 1% for good measure. If you can't factor that in for 5 years, give ownership a wide berth. That's how we did it in the days when there were no paid stamp duty gratis and other bludger payments. That's my quip.
