I’m far from convinced that a continuation of the housing boom will kick off again anytime soon, nor do I believe that should it miraculously occur, that it would be a good thing. Simply put, we’d be continuing down a line that only adds to the $1 trillion in private debt we’re already carrying. Let’s not forget that the economy and employment is unlikely to support it anyhow.
“We’re creating the next housing boom, or bubble potentially.”
March 15, 2009 – 10:49AM
Low interest rates, population growth and a shortage of new home construction is the perfect mix for a fresh house price bubble, says Firstfolio chief executive Mark Forsyth.
Australian might be on the brink of recession but Mr Forsyth believes a new housing boom could begin as early as in the second half of 2009.
“If you combine the last rate decrease with news that there’s going to be another decrease, rental yields going through the roof, shortage of supply of property and the first home owners grant, it’s a perfect storm of a positive nature,” Mr Forsyth told AAP.
THE Commonwealth Bank has demanded that a Sydney family pay more than $240,000 after allowing them to guarantee a friend’s mortgage, despite already defaulting on their own loan.
Distressed Minto couple Wida and Joko Sosrohardjono, their children and grandchildren could be forced onto the street, if a court does not overturn the repossession order for their home next month.
“I cannot believe this is happening to us – we do not know what to do,” a devastated Mrs Sosrohardjono told The Sunday Telegraph.
“We work so hard and if I lose my house it is all for nothing.”
I’ve also, voiced my concerns over the sustainability over such a boom and what I consider a major crisis in the making, namely ‘unaffordability on a large scale. Min’s feedback was extremely insightful.
Over To You
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