World asset price implosion. Australia in small recession, stock prices falling.
Australia had a housing price boom.
Well off young people struggling with rentals, well off young folk can only dream of buying. Well off buyers of yesteryear in negative equity. Big buyers effectively bankrupted with asset worth less than the amount borrowed.
Houses sitting on the market not selling for years. Income earning individuals sleeping in cars through lack of accommodation. Huge amounts of apartments coming online which hardly anyone can afford to buy. Baby boomer investors starting to look nervous !
Under supply of houses in productive regions means they can’t grow – workers can’t re-locate. Wage spiral. People can’t earn enough to pay for housing and consume – retailers suffering.
Job losses accelerating by the day. Public service job losses through the roof !
Is the mining boom starting to slow ? I hope not.
When will the house price insanity end ? When will Australia be a country where an honest person can safely put a roof over their own heads ? Housing is a right and a need.
Only 400k ? Only ? Do you hear yourself speak ? Do you have 400k ? Do you know what the interest payment of 400k is per year ? Do you know you need an 80k deposit ? Do you know how long it takes to save 80k ? Do you know that if I had 80k I wouldn’t spend it to go into 320k in debt ! On an asset that won’t grow ! Because the law of numbers has finally arrived and I cannot pay what I do not have which means it cannot possible grow !