Fhb. Look up the owners were brought forward. It was a once in a decade attempt to stabilize it only works if there is potential income available. Guess what, it's not there anymore till it 'recharges'
You will find that the FHB numbers are pretty much back to pre GFC levels. the RBA released a graph recently - perhaps it was a percentage - I'll try to find it for you.
Any expressed market opinion is my own and is not to be taken as financial advice
Fhb. Look up the owners were brought forward. It was a once in a decade attempt to stabilize it only works if there is potential income available. Guess what, it's not there anymore till it 'recharges'
what do you mean by 'recharges'? income recharges or the pool of fhb's recharges, or other?
You will find that the FHB numbers are pretty much back to pre GFC levels. the RBA released a graph recently - perhaps it was a percentage - I'll try to find it for you.
Peter - i know you don't do much FHB lending, but via industry and colleague info please keep us updated about how this drop changes debt demand in the next few months.
Hmmm - so 5 years ago hey? Not long after that in Australia, how many times did the RBA cut rates in 2008 and 2009 again? Did that help the property market? Was quite different here to the US wasn't it? There is absolutely no reason to think we would suddenly be just like them now is there! No sub-prime mortgage crisis for a start - i think that had something to do with the crash over there?
in 2008 and 2009 RBA was cutting to reduce effects of financial crisis from overseas, not to stop local debt bubble from bursting
Now, they are cutting because debt bubble (mostly but not only housing debt) is bursting. There are million factors that show we are just like them.
the most important once: We have huge oversupply, huge sub-prime crisis just to unfold and much weaker banks to start with.
just remember how 5 years ago everybody was talking about chronic shortage now MSM is full of stories about oversupply.
people were preoccupied with ABS and RBA data today so they missed this one:
Quote:
Arrears of 30 days or more on loans that back Australian mortgage bonds jumped 21 basis points, or 0.21 percentage point, to 1.84 percent in January, the highest level in three years, Standard & Poor’s said in a report today. The proportion of sub- prime borrowers who were late with payments rose 86 basis points to 11.95 percent, the report showed. http://www.bloomberg.com/news/2012-05-01/australian-house-prices-fall-for-fifth-straight-quarter-1-.html
You will find that the FHB numbers are pretty much back to pre GFC levels. the RBA released a graph recently - perhaps it was a percentage - I'll try to find it for you.
The only buyers that can save bubble from bursting are speculators (this is also confirmed by FED) - speculators are gone from Australian market game is over
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