FHOS another sub prime?

[Glen48]

Isn't the 21K grant Australia's version of USSA sub prime ? Aren't we trying to prop up a falling asset and encourage more home buyer to get into debt on a falling market?
Isn't this sending the wrong message to all who want to specinvest?

 

[Ageo]

Isn't the 21K grant Australia's version of USSA sub prime ? Aren't we trying to prop up a falling asset and encourage more home buyer to get into debt on a falling market?
Isn't this sending the wrong message to all who want to specinvest?

Couldnt agree more, as mentioned in other threads

 

[CanOz]

Isn't the 21K grant Australia's version of USSA sub prime ? Aren't we trying to prop up a falling asset and encourage more home buyer to get into debt on a falling market?
Isn't this sending the wrong message to all who want to specinvest?

I disagree that it is the same as subprime. This is fiscal stimulas as opposed to an asset bubble created by monitary stimulas. Also, with subprime loan qualifications went out the window as lending practices got to the point of ridiculous.

I'm not saying that its the best medicine for economy right now. Buts it a different pill altogether.



CanOz

 

[xoa]

We already have a subprime market, just by another name. It's absurd that more than a million households are putting 50%+ of their disposable income into the mortgage. If these people start losing their jobs..

 

[Julia]

W If these people start losing their jobs..

Exactly. And they will as the economy fails.

 

[numbercruncher]

I actually dont think this will work as they hope .......

This is clearly aimed at Gen Y , whos home ownership rate is at an unheard of 5pc currently ..... this Generation simply arnt playing the silly priced RE game .....


They need to wash inflation through the entire system to beat this .....