Part of me can't understand why ordinary people sought $900K mortgages then I realise that members of my own family have similar mindsets. I've certainly been pushed into buying things I shouldn't have bought but at least I have no debt to service.
In my experience, new arrivals are FAR more frugal. They won't generally be looking for million dollar properties unless they have profitable business connections in their country of origin.
Inheritance? The pre-war generation are still around and the kids of the 40's and 50's will be here for the foreseeable future. The retirement "industry" is in any case able to strip the estates of those who venture into gated villages, hostels and nursing homes.
Easy bankruptcy will be an easy option for many a punter in the near future. Should the local RE market collapse with interest rates rising there will be next to no stigma attached to bankruptcy proceedings. A typical outcome may see the bankrupt party chucking the keys at a bank (US style) .
