"A VERY sensible post and surprise, no-one from the property bulls answered him. Know why? Coz what he asks is an "Inconvenient Truth".
michael123 Post #: 15730 In Reply to msg: #15728 IP: 211.26.xxx.xxx Views: 290
To view the full post without scrolling please use the full width view or single post view. i have a question for kincella and warnie with regards to property. I agree yes property in the 500k under is booming at the moment, Why is that? The Government is borrowing money and servicing the debt for the first home buyers and pumping it into the property market.... but how far can it go? Speculative buys will buy a house EG 450k then sell at 550k to make their profit. With property prices currently 7 times the annual average australian wage who is going to take out the additional debt for the speculative buyer to make his profit? Its not a case of peoples savings have increased so prices are going up from everyone's hard earned cash. Do you think people will take out loans to the size that the housing becomes 9 times the annual Australian wage? We are currently experiencing a huge drop in spending...why? Because ppl are paying back debt instead of wasting it in retail. Do you think wages will increase so borrowers can take out larger loans? No company profits are going down not up. When unemployment rises will more people take larger loans? I am just curious to ur thoughts when we go up another rung in the housing market who will be servicing these new larger loans required so people who bought just recently can make a profit??? "
so did you read the post YOU supported as VERY sensible and an "inconvenient truth"
unbelieveable. No wonder no one believes in santa anymore LOL.
