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Sheer Heart Attack

Australia Staring At Same Crap-splattered Fan As Britain

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Mortgage woes hit Sydney suburbs

By Phil Mercer

BBC "News", Sydney, Australia

These are bleak times in Australia's mortgage belt.

They haven't been this high for 12 years as the country's Reserve Bank seeks to curb creeping inflation and high commodity prices.

The pain is felt keenly in Sydney's blue collar western suburbs.

Eddy Ajami, a 58-year-old taxi driver, is working 14-hour days to stay ahead.

"I pay Australian $1,200 (US$1,109, UK £550) monthly on the mortgage, so I had to work very hard," he told the BBC.

"I had to cut down so much on the food shopping. That's me but what about the others? They can't even afford to eat."

Australian home owners with a AUD $300,000 (US$277,000, UK £140,000) mortgage will face extra repayments of about $50 a month following the rise in the cost of borrowing...

It's estimated that 300,000 Australians risk losing their homes if the cost of loans continues to spiral upwards.

Many more are suffering from mortgage stress where at least 30% of their income is spent paying off the debt.

"It's getting very difficult," said Ziba Chohali, a jewellery store owner in the Sydney district of Bankstown.

"It's not just mortgages - bread, milk and petrol are all more expensive."

Financial counsellors are reporting record number of mortgage defaults and bankruptcies.

Contagion is spreading so quickly across the developed world it's frightening.

When someone can explain to me why it's better for disposable income to go to moneylenders in such a large volume rather than into the wider economy, I will become a heretic and worship at the feet of Kirstie and Phil.

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Sounds bad, but Australia has a resource based economy close to Asia where demand for commodities is high. Mortgage payments will climb yes, but jobs will remain.

Britain on the other hand ................ eek.

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Guest DissipatedYouthIsValuable
Mortgage woes hit Sydney suburbs

By Phil Mercer

BBC "News", Sydney, Australia

Contagion is spreading so quickly across the developed world it's frightening.

When someone can explain to me why it's better for disposable income to go to moneylenders in such a large volume rather than into the wider economy, I will become a heretic and worship at the feet of Kirstie and Phil.

I miss the idiots with the "It's all about affordability, with these low interest rates you only need £4 a week to live after paying your mortgage."

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Sounds bad, but Australia has a resource based economy close to Asia where demand for commodities is high. Mortgage payments will climb yes, but jobs will remain.

Britain on the other hand ................ eek.

see thos http://www.domain.com.au/Public/Article.as...0buy%20a%20home from another thread to see just how bad it is down here - 50% post tax of the average wage goes on the average mortgage.

resources save Aus? their current account deficit is still widening in the biggest resources boom in Australia's history FFS!!

Edited by mattyboy1973

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The BBC are scraping the barrel here, the mortgage belt in some ozzie cities have been hurting hard for a long time, they get there yesterdys news from a Taxi driver now BBC very very low quality news service

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see thos http://www.domain.com.au/Public/Article.as...0buy%20a%20home from another thread to see just how bad it is down here - 50% post tax of the average wage goes on the average mortgage.

resources save Aus? their current account deficit is still widening in the biggest resources boom in Australia's history FFS!!

Yes, I think the resources boom safety blanket that is supporting the remnants of positive hpi sentiment will soon be ripped away.

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The BBC are scraping the barrel here, the mortgage belt in some ozzie cities have been hurting hard for a long time, they get there yesterdys news from a Taxi driver now BBC very very low quality news service

Bardon mate I know you are a bullish Aussie and hats off to you - but forget the bbc article look at the one from Domain which is a VI site - 50% of average post tax income on the average mortgage, country wide - not just mortgage belt battlers or whatever else. How can this be sustainable? Genuine question!

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Contagion is spreading so quickly across the developed world it's frightening.

Food and energy are simply reverting to historical trends we've had it too good for too long - those that didn't understand the last twenty years will feel the pain.

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Bardon mate I know you are a bullish Aussie and hats off to you - but forget the bbc article look at the one from Domain which is a VI site - 50% of average post tax income on the average mortgage, country wide - not just mortgage belt battlers or whatever else. How can this be sustainable? Genuine question!

I am bullish about life in general and know that house prices do not go up all the time but I do think that they will follow the cycles of the past and therefore cannot see a HPC happening with the median value houses in oz. Rental demand, the economy and long term population growth is very very strong. There is significant equity holders that would reenter the property market during a slump and many owners will simply choose not to sell as they have done in the past. The economy is being fueled by double-digit GDP growth in India and China, which are both furiously building out their infrastructures, and by billions of new consumers lining up to buy everything from clothes and cutlery to air conditioners and cars.

Take a look at what’s happening in the major resource categories ...

Energy: This year, the world’s oil demand will rise past 1,000 barrels a second — and oil companies can’t keep up. As for OPEC ... with friends like them, who needs enemies? Don’t expect the cartel to increase supply anytime soon. Heck, Chakib Khelil, the group’s president, recently said not to expect a boost in production!

Precious Metals: Investor demand for gold is surging as investors try to hedge against inflation. One of the biggest funds that holds physical gold — the streetTRACKS Gold Shares ETF — now holds more gold than many central banks. And a new gold ETF is starting this year in India, where 1.1 billion people will suddenly have a new way to buy the yellow metal.

Agriculture: China and India are changing their diets, a fundamental shift in global food supply/demand. Now their combined populations of 2.4 billion people want to eat our lunch. To do it, they are buying U.S.-grown grain by the boatload. Global stockpiles of grain — that is, the food held in reserve for times of emergency — are now sufficient for just over 50 days. This is already lighting a fire under prices on your grocer’s shelves.

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Mortgage woes hit Sydney suburbs

By Phil Mercer

BBC "News", Sydney, Australia

Contagion is spreading so quickly across the developed world it's frightening.

When someone can explain to me why it's better for disposable income to go to moneylenders in such a large volume rather than into the wider economy, I will become a heretic and worship at the feet of Kirstie and Phil.

I have said from the start --- The Moneylenders have totally manipulated our lives ---- WAKE UP EVERYONE!!!!

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"The money is out there," he said. "The problem is most people don't have enough self-control to deal with all this ready cash and they go down the gurgler".

:lol:

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'The Crap-splattered Fan' :lol:

Could be the title of a monthly glossy magazine discussing the housing market.

In this issue: Would you buy a used Plasma screen from Foxtons?

We go down under to find out why prices are down and going under.

Special Spanish supplement: No Casa!

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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