Interesting to read some “non-fake” news today where the truth is slowly being leaked out by major media outlets.
One of the largest builders and holders of apartments in Australia is now saying people will be wiped out in the (just starting) (watch out for that cliff!) current downturn, sighting Government activity both within and external to Australia as being at fault.
Settlements are failing at 50% as buyers walk away from their deposits due to buyer’s remorse and being scared by what they’ve actually bought into.
New South Wales Government has an application fee of $10,000 to buy if you are not an Aussie. Stamp duty on foreign buyers has been raised from four to eight per cent and a land tax of 0.75 per cent will commence in 2017. Local councils are also chipping in with extra charges.
Wow! What I’ve been saying for years is suddenly BIG NEWS. Aussie Banks are sitting on $500 BILLION of what they call “Liar Loans”. Borrowers lie on their applications for finance, however, Brokers and settlement agents within the Banks do not and have not properly checked and validated applicant’s claims as to income and expenditure. Watch out Bank Shareholders is all I can say. Profit? What profit when this House of Cards tumbles!
Economies are “recovering”. Crazed Central Bankers decide to act in advance and put the brakes on early by increasing interest rates.
The Liar Loan Borrowers have no spare capacity in their budget (what’s a budget?) so there WILL be huge numbers of defaults and the market will be flooded with Mortgagee In Possession sales. Watch prices dive with no over eager international buyers, wary investors and savvy folk like us, sitting on our hands waiting for the inevitable blood bath.
“Safe As Houses” Bullshit