Quincy
Jack of all trades master of 0
- Joined
- 28 June 2008
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ohh dear !
A quarter of Australian home borrowers will be under severe financial stress or forced to sell their homes if interest rates rise by another 100 basis points next year, research shows.
One in 20 said they’d be forced to sell, with baby boomers under the most stress - 15 per cent of borrowers aged 50 to 65 years say they’d have to sell.
http://www.smh.com.au/business/mortgage-stress-to-intensify-if-rates-jump-20101112-17qwd.html
Aussie House Price Crash Has Begun
That sounds bad to me, but what does it really mean? Is it really a bad situation, is it sustainable, have we overextended, or is it simply a useless comparison that has no real value?
Where is robots while all this is going on? lol
Interest rates? Direction seems to have changed despite QEII efforts.?! We have no room to move, lets hope we don't have to.
Higher funding costs eat into big four's margins - Big four banks may opt for more rate rises
By Danny John - November 16, 2010
THE threat of further bank-imposed rate rises is unlikely to disappear for at least another nine months as higher funding costs continue to erode the big four's profit margins.
With billions of dollars of cheap debt from pre-global financial crisis days still to be refinanced at more expensive levels, the banks could opt to raise loan charges above any Reserve Bank increase to bridge the financing gap.
The possibility of another rate rise arose yesterday after the Commonwealth Bank disclosed a further reduction in its retail banking arm's margins because of the higher premium being demanded by overseas debt providers.
http://www.smh.com.au/business/higher-funding-costs-eat-into-big-fours-margins-20101115-17ucu.html
A quarter of Australian home borrowers will be under severe financial stress or forced to sell their homes if interest rates rise by another 100 basis points next year, research shows.
http://www.smh.com.au/business/mortg...112-17qwd.html
I'm not sure if I qualify as a bull anymore given my comments on likely short term moves in prices, but they are clearly fudging the figures (or attempting to).Professor of REIV long time, winner of countless years, or other vanishing property bulls. What is your take apart from the REIV has changed their calculation methods of late?
Will the property prices collapse similar to the other Western civilised democracies? Unlikely IMO.
And the prices are just ridiculous. Something has to give; I am seeing places that use to be slum areas selling in the $700 thousand range. And all while I was trying to buy.
There are heaps trying to sell at the moment. Even my parents are selling two (going on market next week).
Major real estate firms are cashing in on the trend, promoting Australian properties in Asian hubs like Hong Kong and Singapore, luring cashed up investors with promises of safe, secure growth opportunities.
The most recent figures from the Federal Government's Foreign Investment Review Board, collected during the worst of the global financial crisis in 2008-09, reveal foreigners picked up $23.4 billion in Australian real estate assets including 3639 new and existing homes, and 988 parcels of land.
Damn it, am I the only one living in an area that just keeps going up. The house sold two doors up in less than 3 weeks. The house across the road from that sold in two days. In fact most are only lasting 1-4 weeks on the market. And the prices are just ridiculous. Something has to give; I am seeing places that use to be slum areas selling in the $700 thousand range. And all while I was trying to buy.
There are heaps trying to sell at the moment. Even my parents are selling two (going on market next week).
Damn it, am I the only one living in an area that just keeps going up. The house sold two doors up in less than 3 weeks. The house across the road from that sold in two days. In fact most are only lasting 1-4 weeks on the market. And the prices are just ridiculous. Something has to give; I am seeing places that use to be slum areas selling in the $700 thousand range. And all while I was trying to buy.
There are heaps trying to sell at the moment. Even my parents are selling two (going on market next week).
The RBA also has enough capacity in rates to DROP them if necessary to soften the blow. The Guvmint does not want to cause the banks stress who hold the $$$ and the mortgages to the future prices of Australian property.
Lest we forget these numbers: ESTABLISHED HOUSE PRICES
Quarterly Changes
Preliminary estimates show the price index for established houses for the weighted average of the eight capital cities increased 0.1% in the September quarter 2010.
The capital city indexes increased in Melbourne (+2.7%), Perth (+0.4%) and Darwin (+0.3%), and decreased in Sydney (-0.9%), Brisbane (-2.1%), Adelaide (-1.4%), Hobart (-1.4%) and Canberra (-0.4%).
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