first home buyers urged to beat rate rise, page-41

Warnie your an interesting character as you make calls with no proof but as soon as anyone else refutes your bullish sentiment you come out with calls like that!

From a personal perspective the NAB offered me a loan only 7 weeks ago of inexcess of 1.8mAUD based on my uk salary. I was absolutely gobsmacked as there was no way regardless of currency fluctuations that i would have been able to live a normal life eg food for my family, pay bills etc. Considering i only asked for up to $400k i was a touch surprised and i am sure if they are doing this with me they are doing it with alot more people with alot less common sense and alot less money!!

Just begs the question what will happen in the next 18-24 months when rates do go up another 1-2%+. "Maybe" the asset bubble in oz maybe pricked like it was in the UK for all the same reasons that are being given as to why housing prices in oz will keep rising - migration, not enough building etc all the same reasons if you read any housing article in the uk up till Dec 2007!!

I would be certainly telling my kids to wait until 2011 or 2012 to get a clearer picture of what will happen as things are unsustainable, before buying at present because once the bottom of the chain - FTB cant get on the ladder for affordability thats when the cards collapse.