After all the hype from the Sunday Show, this article comes out..
Confident banks predict house prices for 2006
Major banks have rejected statements by home loan provider John Symond that the real-estate market will continue to fall click here for more… http://www.gpsnetwork.com.au/MediaArticles.htmlRoy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
Clearly John Symond is after some cheap publicity. He must be paying attention to BS Shapnels press releases.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
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It’s amazing how people just hear & follow though, not all..
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
Hi Roy, heed the roar of the distant drums …
Yes but!!!!!!! if you read the Fin Review on Saturday you would have seen the terrible debt that young australians are into.
We are the WORST per head of population in the WORLD for debt, come on guys some thing has to give.
I am a positive person but I have also experienced 19% interest rates. JS is saying that if the rates went up to 10% tomorrow a big piece of the population will fall.
All I can say is put me on record because there has to be a turn soon some where.
resiwealth
Yes, I believe a rise from ~7% to 10% interest rates would have about the same effect on today’s average mortgaged-home ‘owner’ as the rise to high-teen interest rates of the early 90s had on the then average mortgaged-home ‘owner’.
Which would be bad.
It would be much worse now because a far higher proportion of Australians now hold mortgages than 15 years ago (including many retirees/near retirement[blink]) and far more have more than 1 house mortgaged.
Then there’s the personal debt referred to by Resiwealth…
Then there’s the fact that we as a country manufacture much less than we did in fifteen years ago and a huge proportion of the jobs created since then have been consumption-related. In other words selling stuff to eachother which is often purchased with debt (‘credit card’=debt). To prop up this consumer economy, we’ve spent as much as 104% of our income over the last few years. Blind Freddy could see that this situation could not exist perpetually. Something had to break somewhere. And it seems the first signs are showing through.
– A slowing in lending growth (housing & personal)
– Falling retail profits
– Unemployment rising from low (trend break)
– Rising redundancies (car industry, Telstra, ….)
– Rising insolvency rates.
– ???Believe me, things aint all rosey in this country, no matter what the vested interests will tell you.
This is just the beginning, the tide is still turning, but our way of economy is so wrapped up in itself that a further change to any one of those listed ‘signs’ will exascerbate every single on of the others.Cheers, F.[cowboy2]
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