This issue was raised by a number of commentators on H.C. about a month ago. As usual, the Labor supporters thought there was no issue.
Well, there is an issue.
First-home buyers struggle as interest rates rise Article from: The Sunday Mail (Qld)
Nick Gardner
January 31, 2010 12:00am
ALMOST half of first-home buyers lured into the market by the Rudd Government's $14,000 grant are struggling to meet their mortgage repayments and many are already in arrears on their loans.
Thousands of young home buyers are using credit cards or other loans to meet obligations, while those in "severe stress" are missing payments.
Just weeks after the grant was withdrawn, a survey of more than 26,000 borrowers conducted by Fujitsu Consulting has found 45 per cent of first-home owners who entered the market during the past 18 months are experiencing "mortgage stress" or "severe mortgage stress".
The number of first-home buyers in debt is likely to worsen in the next 12 months as interest rates rise by an expected 1 percentage point....... END
Very predictable, yet so avoidable.
Another Rudd/Swan initiative gone pear shaped. And not to mention the "bubble" created now at the bottom end of the market.
