Spot on,
We borrow to spend ,People Throw money into houses
Because we have been led to believe they are a
no fail investment , easy money just buy and up she goes, money for nothing.
Let me tell you the tsunami will start in new built areas . People I know have bought in south west. Sydney and have a mortgages of nearly 900G.
As an electrician and with Saturday’s and over time is earning 95G a year, his wife is working part time . When the work in new housing slows his overtime will disappear and so will his ability to service the loan if interest rates go up a little
It’s completely over .
There are acres and acres of new housing as far as the eye can see. The developers were smart and with every new lot released they put the prices up so that people were scared to wait and then pay more for the next release in 6 months.
The brokers were into funny stuff as well with the applications that’s another story.
It’s a massive Ponzi scheme
The best is there is no inheritance to bail them
out longer term as nearly all are new arrivals so unless property keep going up to someday pay back the debt it’s just a massive bomb waiting to go off.
