Australia housing bubble

[Romulus]

Originally Posted by T3rminator

So, what was the gist of what was said? Whats the prediction?

Those with LVR's greater than 90% who signed up over the last 18 months with record low interest rates face the highest chance of losing their properties and the shirts on their back. Cash rate is going from 0.1% to likely 3% by years end. That's 2.9% increase, what does that amount to on a $500k mortgage over 30 years on a monthly basis? $805 pm extra repayments. Good luck with that!

Financial literacy amongst the population is low. Very low. I read a home owner with a $1.5m property who's value had dropped $200k asking if their loan also dropped $200k. Why don't people understand their loans are full recourse?

Folks like Martin North and Tony Locantro have been predicting property values coming down since the pandemic started. They've been wrong for nearly 2.5 years, but their being wrong is about to become right.