looks positive at first blush but a deeper delve shows signs are starting to emerge that this market is running out of steam - and fast.
Cashed-up investors or even first home buyers could opportunistically seize bargains but most people will take Prime Minister Scott Morrison’s advice and financially hibernate. Household balance sheets were highly leveraged going into this crisis and now feels like a good time to keep their powder dry.The good news is that the federal government and the banks have come to the party.
Additionally those small to medium sized company owners who are typical residential property investors will be looking for liquidity. They will also be feeling the pinch if their rental tenants are unable to meet monthly payments. And after six months they will need to start paying interest again. Bank largesse won’t continue indefinitely.
"Hopefully, the federal government’s wage subsidy program will keep the rise in unemployment to below 10 per cent and this, combined with various income support measures and bank mortgage payment holidays, will serve to keep forced property selling to a minimum and price declines modest at around 5 per cent," Oliver says.
Who cares.
Only fall 20% ? These inflated debt driven prices need to fall 60% to become normal. Get a grip.
Doesn’t worry me at all.
Why would people buy property in such uncertain times?
good news
Great
they would crash The bigger the better
“The good news is that the federal government and the banks have come to the party. Borrowers affected by the pandemic can put mortgage payments on ice for six months”. Why is this good news? Using public money to prop up an unproductive debt bubble is not good news.
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