One thing about Australia, we have a bucket loads of rules and regulations. Hopefully some of those will prove useful when times get tough. I recall when APRA raised the alarm on lending approaching or hitting 1:6 on income to loan ratio, the banks started to tighten their lending criteria. Possible dangers are those "low doc" loans that some banks were dishing out a while ago. That could come back and bite hard, or the "liar loans". I highly doubt RBA will make decisions that will cause a rout in the market, its not what they were designed to do. Any potential crash will likely be caused by something out of the left field, an event that we haven't even discussed yet.
Doom and gloom. What a great time for first home buyers, if they don't get caught up in the doom and gloom themselves.
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Originally Posted by zilo
yep,yep and yep...been following Martin for few years now.
Most balanced views on the internet IMHO.
I wonder how long it will take some people to figure out that the RBA rate is just a base rate...the banks have always had rates rise out of cycle with the RBA...0.9%...wow...didn't even get a whimper on the main stream media.
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Originally Posted by Romulus
There's a couple of feeds I follow on YouTube including Martin North from Digital Finance Analytics and IOTP. Great statistics and information about what the likely scenario is in Sydney, Melbourne and Brisbane once interest rates hit 5% plus soon. It'll be like watching a train crash in slow motion.
Plenty of bargains to be picked up in the next 18-24 months imo.
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So, what was the gist of what was said? Whats the prediction?