What props up the Australian real estate bubble?
Easy loans cause such bubbles, as easy credit pushes up house prices. This has been shown historically in other countries.
And it is obviously happening in Australia ... http://www.news.com.au/finance/business ... 9cbe966ca2
In Australia's case, huge immigration and foreign investment also helped push prices up to stratospheric levels.
Will the bubble pop?
What props up the Aussie real estate bubble?
- Matt Flynn
- Site Administrator
- Posts: 16185
- Joined: Thu Jan 01, 1970 9:30 am
- Location: Somewhat Southerly
- Contact:
- theodosius
- Jedi Seadog
- Posts: 3258
- Joined: Mon May 18, 2009 10:46 pm
Re: What props up the Aussie real estate bubble?
High wages and the fact people want houses in desirable locations and will pay accordingly. The standard of housing that people will accept is also a hell of a lot higher than 20 years ago too.
- Matt Flynn
- Site Administrator
- Posts: 16185
- Joined: Thu Jan 01, 1970 9:30 am
- Location: Somewhat Southerly
- Contact:
Re: What props up the Aussie real estate bubble?
I think that is part of it, but to send prices to the levels they are now requires a bigger "engine", in this case easy credit.
I wonder what kids think when they leave school now and compare house prices versus their first wage, must be an awful feeling.
I wonder what kids think when they leave school now and compare house prices versus their first wage, must be an awful feeling.
-
- Similar Topics
- Replies
- Views
- Last post
-
- 0 Replies
- 543 Views
-
Last post by Matt Flynn
-
- 45 Replies
- 11598 Views
-
Last post by nomad
-
- 5 Replies
- 884 Views
-
Last post by Blinky
-
- 2 Replies
- 447 Views
-
Last post by luke79
-
- 15 Replies
- 847 Views
-
Last post by nomad