Belly

to say that Labour did us proud during the gfc is just one of those lefty lies repeated often to excuse total incompentance and irresponbility. A 2 year old knows to take a country with a surplus and create institutionisled debt was nothing short of economic vandalism atn its worst. Your grandkids and future generations will be paying for such reckless spending depsite Labour finding some members of the swamp backing their craziness.

indy in truth you should research the GFC and just how well, and why, we came through it.
Must be hard typing with your hands over your eyes but find goggle it, the current amount we are in debt, then compare it with what it was the day Abbott took over

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SMH today, read front page, online, news story about world economy, any day, including this day read housing stress and how many are struggling to pay loans , and the impacts of lower prices and higher interest rates, include Financial review SMH in your reading

Belly, I'm no economist but somewhere in all this I can't get past the feeling that the problem is more to do with existing home buyers, as their monthly dept will rise slightly.
If they don't sell any time soon they will merely have to live a more 'modest' lifestyle, ie; no wine and roses.
I think that will be a good thing as Aussies have become such arrogant, entitled pigs, a 'correction' is not near enough to bring them back to earth.
I would rather see a recession or what should happen is a depression.
Then let's see how they like it.
Aussies have been living WAY beyond their means for decades now.
They need a good slapping to realise their failures.
All these Hollywood toys, jet ski's, SUV's, Fancy houses, Oh I could go on, but I think everyone gets it.
Now as for the first home, or new home, buyers, they will probably be better off, because the rise in interest rates compared to the drop in house prices might just work in favour of the first home/new home buyer, especially when you add the first home buyers grant, which is a cash payment by the govt to help the new home owner get into their own home.
I have not done any numbers but I suspect that the ten to fifteen percent drop in the price of a house will result in a lesser monthly payment even with the slight increase in interest.
So anyone buying their first home will be in very good stead.
Even someone buying second hand I think won't be too badly affected, and in fact might be slightly better off.
Anyway if someone has crunched any numbers I certainly would like to hear from them and their findings.

ALTRAV well yes what you say is true but only for new home buyers yet to get in to the market,, if they can get a loan.
I wanted on starting this thread to highlight the great difficulty's those who currently are buying a home,and who are already over committed will be in.
Your view about to much debt and in my view, the shear stupidity of being unable to pay cash so getting in huge debt, is there to be seen.
Every day including this one, papers tell us we as a nation owe twice our annual income, let that sink in.
We know well we should, world trade is currently a very real danger of forcing a recession, one will come in any case, that holds huge concerns for us all.
Those in debt even more,, many investors bought home after home flipped them for a profit then got in more debt buying another, they are going to be the first victims of lower prices