Monday, June 2, 2008
Is this the world biggest property bubble?
states such as California and Florida are seeing average falls of up to 30 per cent 1-in-194 homes in the US have been repossessed and that ratio is climbing constantly...some financiers are repossessing homes and then asking the owners to stay rent free to protect the property from vandals......property crash could spread to Britain based on its current valuations. Average house prices in Britain are running at six times average earnings, which is way above the historic average of 3.7 times wages. Australian residential property values are currently double Britain's historic high - 12 times earnings in Sydney and 10 times in Melbourne. Australian mortgage repayments are 57 per cent of average incomes compared with 50 per cent in Britainwhere the historic average is just 30 per cent