imagine the carnage when rates go up, page-18

"...paying $1346/w in rent why do you need a remaining $4k to be comfortable? A couple earning 200k combined can easily service $1 million mortgage."


True, but the risk is that you are over the edge immediately if you lose your job or get sick or pregnant or a million other things.

Then if you have to sell and can't, you go down in flames and so do your property prices.

Then it spirals with valuations dropping rapidly under not only prices paid, but mortgages and it feeds on itself.

And now, it is different to the past, we are now on the teat of wholesale funding from overseas - BIG difference to previous decades.


Make no mistake - we 'might' be ok with property in Oz - but at best - it is bloody risky.

We are at risk here of a serious recession - and jobs could fly out the window - along with mortgage payments.

Dropping from $100k a year to nothing is very hard to cover.


Have a great night.


Pinto.