RBA essentially admitting that the housing boom was based on access to easy credit and that unlikely to grow like that again in the foreseeable future:
http://www.abc.net.au/news/2013-04-24/strong-house-price-growth-a-thing-of-the-past/4648580
If Ridout and her mates at the AIG have any say in it the RBA will have rates so low as to encourage property speculation on a grand scale.
RBA essentially admitting that the housing boom was based on access to easy credit and that unlikely to grow like that again in the foreseeable future:
http://www.abc.net.au/news/2013-04-24/strong-house-price-growth-a-thing-of-the-past/4648580
Heather Ridout is no longer with the AIG. Now heads up Australian Super. She's also a member of the RBA herself.
Yes, total outstanding debt matters as much as rates. After all you can only service so much no matter how low the rate. We will not do this again until debt levels reset.
The problem is they haven't. Household net debt has barely budged from the pre GFC highs. At least the USA has seen a decent drop in debt levels. They could have a reasonable swing up in housing prices before getting back to their previous highs.
I do wish the MSM would start to focus on private sector debt, especially households, as it is going to be THE problem than undermines things rather than Govt debt.
WE'RE saving more than ever and are less worried about debt and our mortgages with the average Australian household managing to triple savings in the past two years.
The latest ING DIRECT Financial Well-being Index has found Australians are not only more confident with their mortgages, but have become better at managing their finances better as well.
And while Australia remains one of the most expensive countries in the world, it seems we're getting better at saving with the average household having around $15,427 in the bank in the first quarter of this year, up more than $5000 compared to two years ago.
Well at least that’s the case for some of us anyway.
If you’re South Australian and aged between 35 and 49 it's more than likely you're not saving as much as some of your countrymen.
According to the index, Gen X (35-49) are saving the least with a median savings bank of $8060 compared to $14,377 for Gen Y (18-34) and $17,744 for baby boomers (50-64).
I have been looking at Sydney suburbs of North Parramatta, Clyde & Auburn the last 2 - 3 weeks - sub 300k (basically units).
Anything decent hitting the market has been gobbled/snapped up within a week (7 days), if not less.
Property market dead? In some parts of Sydney, l think not!
Well SC, it just shows the two speed economy.
The street I live in Perth, two years ago same for same they were selling for $600k, today $800k.
It is stupid, people have lost the plot.
Totally agree. I am looking at buying a 2 br unit on the Northern Beaches of Sydney, everytime I check back after a couple Months prices have gone up from the last time. As you say, if anything decent comes up it's gone in no time.
Mum lives in Busselton WA...its a no speed economy there, even though there is like 6 FIFO flights per week.
A friends daughter is going through the same, here in Melbourne. They are getting married next year, and have been in search for a house the last 4 months, every home they like gets sold before they can bid.
http://www.reiv.com.au/en/Property-Research
Mum lives in Busselton WA...its a no speed economy there, even though there is like 6 FIFO flights per week.
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