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08:41
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Originally posted by Redpapa
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it's all artificial tampering that has led to property prices not continuing its trend of recent years. First APRA got involved on the back of politicians desperately trying to keep their crazy promise to make property more affordable. Then the Chinese govt intervened because they wanted to artificially grow their economy again so they plugged the hole that had all the cash fly into Australia. Then the media got into the action with the govt which led to the Royal Commission, which by the way will discover that there is absolutely nothing wrong with the Australian banks mortgage book. But in their fear of further bad press they have changed the way they calculate loan serviceability, based by the way on completely unrealistic assumptions (eg interest rates at 7.5%). So its now harder to get loans (this will change once babk profits tske a nose dive). If govt had not intervened property prices would've still continued on their rising trend because let's face it, the fundamentals are pretty strong - low unemployment, low interest rates and very few instances of mortgage stress, not to mention in Sydney of greater increasr in population tgan housing being delivered. Once the elections are over, the pollies will have no reason to sing their affordability tunes, and market forces will prevail. The funniest thing is that the aim of intervention was to get the young Aussies into real estate, yet banks won't lend to them right now, they're in the high risk category. Besides they still don't know the meaning of sacrifice
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Hi Redpapa,
