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30/03/09
19:21
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the question is when does inflation kick in and by how much will houses rise with an inflation rate of 5-7 %
interest rates at 8%+ because banks will pass the cost in full.
if prices go 10% higher then FHB will need a minimum of 50K to qualify for a loan without mortgage insurance + stamp duty costs. Say 70K
and if they have no deposit then they most likely won't qualify for a loan on a good interest rate
then taxes will rise
It's all to hard to predict, but the system will somehow engineer a way out of it to keep the bubble from popping
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