What Aussie stocks will be seriously affected by the housing bubble?

[helpme]

http://www.smh.com.au/business/the-...bubble-is-out-of-control-20160224-gn2b46.html

"The Australian housing bubble could not have become as ridiculous as it is without the help of easy financing," he writes.
"Over the past few years, over 40 per cent of all new mortgages originated have been interest-only mortgages.
"This is truly Ponzi financing, where home buyers only make money if their houses keep rising in value," he writes, later describing interest only loans as a "disaster waiting to happen."

The bubble sounds pretty serious to me. What are some defensive measures investors can take?

 

[galumay]

Re: What are the Aussie stocks that will be seriously affected by the housing bubble?

Its a pretty silly statement to start with, interest only loans dont of themselves mean there is any problem. Its certainly wrong to say the only way buyers can make money is if the properties keep rising in value. I have a IP that is on an interest only loan, its highly positively geared and I am making plenty of money without accounting for any potential capital gains.

I think there is general agreement we have a property bubble, regardless of the form of finance, banks are obviosly at risk from a fall in the property market, although some would argue a fair bit of that risk is priced in at current values. Any related industry, housing construction, household goods, housing materials etc would obviously be affected directly.

A real collapse in prices would obviously have wider consequences and any company in a sector that is non-essential would likely suffer. The economic flow on would likely affect nearly all sectors to some extent.

If you really believe a collapse is coming then the best defensive measure is to cash up and wait for the buying opportunities that will present!

 

[helpme]

Re: What are the Aussie stocks that will be seriously affected by the housing bubble?

Maybe it is just eye-catching for journalists to spread fear about an impending bursting of a bubble.

Its a pretty silly statement to start with, interest only loans dont of themselves mean there is any problem. Its certainly wrong to say the only way buyers can make money is if the properties keep rising in value. I have a IP that is on an interest only loan, its highly positively geared and I am making plenty of money without accounting for any potential capital gains.

Don't quite understand this part. How can you make plenty of money without accounting for capital gains? Ahh ... do you mean rental income?

 

[galumay]

Re: What are the Aussie stocks that will be seriously affected by the housing bubble?

Ahh ... do you mean rental income?

Yep.

 

[Trendnomics]

The Banks.

 

[ggkfc]

Yep Banks exposed to the bad loans
And the rest of us.. everybody spending money because they think they have a 1mil property to back them up