Well ladies and gentlemen it seems the so called perpetual increase in house prices here in Australiua is nothing more than a direct consequence of the debt that has been used to fuel them !! There is nothing special about house prices in australia contrary to the way the spruikers want to portray it as some sort of endless rise with no abatement in site.

I'm just curious as to when we actually see this investment generate some real wealth and make the debt clock either slow down or run backwards ?

http://www.australiandebtclock.com.au/

beer wrote on Jan 8^th, 2016 at 11:31am:


Should we convert to Zimbabwe currency first? Its wild, jungular and feral.

Quote:

Sir lastnail wrote on Jan 9^th, 2016 at 9:12am:


Anybody with IQ above 90 will make loan as much as possible. The paper money worth nothing, all governments print (technically only need to adjust number of public debts or deficit in compuyer, not even need to pay for papers) them as much as they can.

not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments

Bias_2012 wrote on Jan 10^th, 2016 at 8:51am:


i read the stat about a year ago ... about 80% of loans are 2 yrs ahead. I'll see if I can find it for you

Hardly means a thing John, the RBA is helping the mortgagees' in that case, so will the RBA always do that ? what if the RBA raises the interest rate in the near future and the banks follow suit ?

In fact, you'll want to hope that the RBA does raise the rate because that will mean that the economy is improving and home owners will feel secure in their jobs and find it easier to get their debts paid down

But as it is at the moment, with an uncertain economy, debt could end up a real problem 

Bias_2012 wrote on Jan 10^th, 2016 at 9:24am:


it does to the mortgagee. If RBA raises rates (unlikely for the next couple of years) I assume people will, where necessary, raise their repayments. 

John Smith wrote on Jan 10^th, 2016 at 8:09am:


Sun Tzu wrote on Jan 10^th, 2016 at 9:59am:


Owner occupied housing debt is one of the best and safest debts to have. It is also the best way to accumulate wealth over the long term.
Everyone has to live somewhere so you will always have an asset to support that debt.

Unless you are thinking of living on the streets the only way to avoid a housing debt is to pay rent. That rent will just be paying off someone else's  mortgage and accumulating wealth for them.