always talking it down and not looking at what it is.
what you forget is most people on average earn about $52K P.A.. thats the average for the whole house hold in australia..
what you forget is, most people when they buy a home buy the best they can.. and at current the average home loan size is $250K
that, on average works out to a $900 a fortnight mortgage on a $1,400 a fortnight net income back a few years ago. which leaves $250 a week to live on.. food, petrol, bills, looking after the kids.. etc
Now with the rate rises the average is paying a $1,070 mortgage leaving them with $165 a week to live on..
Next rate rise posibly next month could reduce that down to $140 a week to live on.
Then your going to learn a hard lesson in supply and demand, when no ones buying and everyones selling as quickly as posible the prices fall.
Australian houses are trading at a premium by about double what they are really worth, this is a known fact world wide but people in australia seem to ignore this..
there is every chance housing will fall by 30% - 50% in 2 years.. and even 60 minutes sugested the same also..
The double edge of this sword is, you saw the banks raise rates from loss's in the US.. when Australians walk away from their home loans at a loss the banks start to lose money again also, which will make them up rates again making the situation worse yet..
any realestate investor who bought residential property in the last 3 years is not going to be happy..
For the younger people wanting to buy a home, just hold on 18 months maybe 24 tops, and you will be able to buy houses at realistic values.
