The problem is the FHBS has set many young people up for a terrible fall, interest rates are still very low yet many are already feeling the pinch.
Personally I thought it was very irresponsible of the Government to introduce such a schemein at the time. In my view property prices are way overvalued in Australia & are due a considerable correction. Perhaps a better way forward would have been to let prices find a 'natural' (supply/demand) level. Yes that would have meant some pain for those property investors who entered at the peak of the market, can't please everyone.
We in Australia are almost exactly the same as the US in that we require the value of our properties to appreciate in order to see ourselves creating wealth. In reality it's debt ridden wealth instead of true wealth.
Much bigger problems on the horizon and closing in fast in my view.
