On your point of interest rates are back to historical levels.. - If there were a lot of buyers getting into housing when interest rates were low, they are now paying the historical levels of interest? - Therefore when they maxed out their loans to a level they could afford at that time, would the buyers now be paying a massive amount more in interest? - Disposable income is affected therefore frivolous (survival) spending takes over. No more extra meals out.. No more spending on entertainment or 'normal' stuff..
On that note, I need to ask @Load. How are your bogan friends going? Has the recession started to hit them as yet? e.g. reduced number of burnouts? Cars on their lawns being stripped down and sold off for parts?
Yes the land of the plentiful. OztrailerPark.. I am wondering if anyone has been driving around their local beaches and seen all the new Oz Citizen 'Tourists' making use of the beautiful scenes of the oceans. I guess that is the sea change they never wanted. One or two people on here who are hocked up to their eyeballs likely will join them, when their strategy of buy and hold (because it is soooo cheap) works against them. Bugger.
The government is going to have a greater backlash when the new residents get housing over the existing souls who cannot get their nose through the door.
As to Wage Growth... hmmm.. How many friends have been getting those? The govt is deflating the figures so they don't have that double whammy at present. It will eventually occur, but when it goes rrrrrs up, no more need for increasing wages right.. But if this doesn't eventuate, won't wage growth add to the inflation issues (like in the 1970's). More reason to continue raising interest rates.
(20min delay)