Housing Bubbles

8 Apr

http://news.domain.com.au/domain/real-estate-news/australia-is-in-one-of-the-worst-housing-bubbles-we-have-ever-seen-20150327-1m8vao.html?

Lindsay David wrote onMarch 27, 2015:

Australia is in one of the worst housing bubbles we have ever seen

” .  .  .  . since the mid-1990s, Australia’s strategy is for home buyers and investors to borrow heavily from lenders and flip houses to the next buyer who has taken out even more debt to speculate.

Today, all this country has to show for it is a $1.9 trillion mountain of household debt that will make the US credit-fuelled housing bubble of the last decade look like a walk in the park when our housing bubble bursts.

The unfortunate victims of today’s “wealth-creation” strategy are young home buyers and middle-income earners who are either completely priced out of the market or leveraged through the roof.

While our society lacks a meaningful and open debate on the toxic and rising levels of household debt, new home buyers in Sydney and Melbourne are entering the market and taking upon the most illogical sums of debt, courtesy of our over-leveraged banking system.    .  .  .  .   “

6 Responses to “Housing Bubbles”

  1. berlioz1935 April 8, 2015 at 12:23 pm #

    One of the best articles on this important subject.

  2. Three Well Beings April 8, 2015 at 4:12 pm #

    This is quite shocking to me, Uta. As the article mentions, the economic practices and resulting problems in the United States are epic! it’s hard to imagine that Australia is continuing to go down that same road in light of how devastating it has been. I know so many people who lost their homes! 😦

    • auntyuta April 8, 2015 at 4:40 pm #

      It should not be like this, You are right, Debra, it is quite shocking. 😦

  3. catterel April 8, 2015 at 8:26 pm #

    And a similar state of affairs in the UK, in spite of the cry for “affordable housing”.

  4. stuartbramhall April 9, 2015 at 9:01 am #

    There seems to be major problems with the Australian economy at the moment. The big news in New Zealand is the drop in the value in the Australian dollar. It’s now trading at parity with the NZ dollar – for the first time in 40 years.

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