Hi readers
The Australian government released its budget with taxes on the banks.
While the banks are trying to deal with it and obtain media support (it's not fair campaign) for it they are fighting a loosing battle.
So the best way for the bank to retaliate is to hike up rates and used the excuse of lending/ borrowing cost have increased.
Also while doing this they are fully aware that 72% of borrowers are paying interest only so what better way to squeeze the economy.
The Australian property market has been on this collateral binge to the point where those who have bought property in the last 5 years wether it be investment or to live in will never pay it off..
THATS RIGHT NEVER.
You can try all you like but the bottom line is with rising household costs, no wage rises and rising interest rates, you are a bank slave, and you have yourself to blame, for believing media bull shit.
The government to has a lot to answer for, state governments make a killing on stamp tax, and the gravy game continues with the public the suckers.
It's for this reasons state governments drag the heels on opening land for development, but this will change and it will be very nasty..
I'm actually looking forward to it as I intend to buy a hole court in templestowe and have change.
Investors have also binged on the collateral game and this is where the threat of recession is.
Previously investors used the stock market for excess money , not property.
That's why around the world stock markets are at record highs except Australia, in fact the ASX is over 20% off it's all time high, tells you something about how overvalued the housing market is.
Another curve ball which will hit Australia is the Chinese banking issues.
With so much debt and with a deteriorating economy it will be interesting to see how they make there calls on loans.
Personally it doesn't worry me one bit I have no property except the place we live in so as always chance comes to the prepared mind.
The Australian government released its budget with taxes on the banks.
While the banks are trying to deal with it and obtain media support (it's not fair campaign) for it they are fighting a loosing battle.
So the best way for the bank to retaliate is to hike up rates and used the excuse of lending/ borrowing cost have increased.
Also while doing this they are fully aware that 72% of borrowers are paying interest only so what better way to squeeze the economy.
The Australian property market has been on this collateral binge to the point where those who have bought property in the last 5 years wether it be investment or to live in will never pay it off..
THATS RIGHT NEVER.
You can try all you like but the bottom line is with rising household costs, no wage rises and rising interest rates, you are a bank slave, and you have yourself to blame, for believing media bull shit.
The government to has a lot to answer for, state governments make a killing on stamp tax, and the gravy game continues with the public the suckers.
It's for this reasons state governments drag the heels on opening land for development, but this will change and it will be very nasty..
I'm actually looking forward to it as I intend to buy a hole court in templestowe and have change.
Investors have also binged on the collateral game and this is where the threat of recession is.
Previously investors used the stock market for excess money , not property.
That's why around the world stock markets are at record highs except Australia, in fact the ASX is over 20% off it's all time high, tells you something about how overvalued the housing market is.
Another curve ball which will hit Australia is the Chinese banking issues.
With so much debt and with a deteriorating economy it will be interesting to see how they make there calls on loans.
Personally it doesn't worry me one bit I have no property except the place we live in so as always chance comes to the prepared mind.
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