Comments on: Are highly leveraged homeowners about to crash? http://www.crikey.com.au/2008/04/04/are-highly-leveraged-homeowners-about-to-crash/ now with extra source Sun, 12 Feb 2012 00:58:05 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: mark http://www.crikey.com.au/2008/04/04/are-highly-leveraged-homeowners-about-to-crash/#comment-20523 mark Thu, 01 Jan 1970 10:00:00 +0000 #comment-20523 Whilst clearly these kind of scenarios could happen in Australia an anlaysis based on the fact that it happened there therefore it will happen here seems overly simplistic. For a start, much of the issue in the US is because of "overbuilding". Inventory levels, particularly of condos in Miami and much of California has exacerbated a crisis originating in "the easy money"period post dot com crash. Many factors drive the values of property in Australia both cultural and structural. For instance today's news on the potential for 50% rent rises over the next five years driven by lack of stock seems somewhat at odds with a crashing property market. Seperately, favourable tax treatment, If one assumes the only thing keeping property prices in check is a restrictive policy stance by the RBA then what will happen when they let that rubber band go. Good effort at parroting some scary stuff. Whilst clearly these kind of scenarios could happen in Australia an anlaysis based on the fact that it happened there therefore it will happen here seems overly simplistic. For a start, much of the issue in the US is because of “overbuilding”. Inventory levels, particularly of condos in Miami and much of California has exacerbated a crisis originating in “the easy money”period post dot com crash.

Many factors drive the values of property in Australia both cultural and structural. For instance today’s news on the potential for 50% rent rises over the next five years driven by lack of stock seems somewhat at odds with a crashing property market.

Seperately, favourable tax treatment,

If one assumes the only thing keeping property prices in check is a restrictive policy stance by the RBA then what will happen when they let that rubber band go.

Good effort at parroting some scary stuff.

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