Australia cannot remain at the top of the 'most unaffordable housing' and 'highest debt/income' ratios forever.
Is there a reason for this, or it is just a "something bad must happen" feeling? The Swiss have topped the highest debt/income for years, and it hasn't been a problem[1].
Even a slight fall in house prices and/or income levels will have major ripple effects.
Australian house prices have dropped around 4% over the last 12 months, and have been largely static since 2008/9.
Yet this is not being discussed at all, as it is continually hand-waved away with 'oh that's not a problem, this time it is different'.
That's not true. Most commentators forecast little-to-no increase in property prices over the next few years, and there are plenty of people who think the property market will fall.
Is there a reason for this, or it is just a "something bad must happen" feeling? The Swiss have topped the highest debt/income for years, and it hasn't been a problem[1].
Even a slight fall in house prices and/or income levels will have major ripple effects.
Australian house prices have dropped around 4% over the last 12 months, and have been largely static since 2008/9.
Yet this is not being discussed at all, as it is continually hand-waved away with 'oh that's not a problem, this time it is different'.
That's not true. Most commentators forecast little-to-no increase in property prices over the next few years, and there are plenty of people who think the property market will fall.
[1] http://www.economist.com/blogs/dailychart/2011/07/world-debt... (and switch to the "household" tab)