NAB’s March quarter survey found 15 per cent of purchases were by FHBs intending to live in the property, but another 10 per cent went to FHB “investors”.
When the most marginal of borrowers enter the market in record numbers, the 'greater fool' becomes increasingly harder to find. FHBs are now speculating on ever-rising house prices like never before. They're also doing it on highly leveraged LVRs and with a record high percentage of interest-only loans. We're fast running out of greater fools.
