It's still all about debt, but never about how to pay it back and have an acceptable quality of life - working for the banks more like it ....
- consumer debt at 174% of GDP
- outstanding balances on credit cards up from $44.7 billion to $45.2 billion
- government guarantee of banks borrowing has supplied cheap funds for property
Unaffordable for the locals ie Australians - sell it to foreigners.....One in five (19%) Australians with debt finding it difficult to make repayments, or unsure how they will make their next repayment.
The study, conducted by Galaxy research, found four in five (82%) Australians worry about the ability to repay debt over the next 12 months - up from 76% of Australians in September 2009.
This is the highest level of debt stress in the past two-and-a-half years of this study.
Also of concern is the finding that one in seven (14%) Australians have missed a minimum bill repayment in the past three months - up from 12% in September 2009. Of those who had missed a repayment, one in ten (11%) are looking to take on more debt in the next six months.
China stimulis credit, though Chinese investors, flows into our prices too, as it will 'unflow' when stimulis is reducedThe most recent first-home buyer affordability index plummeted 18.4 per cent in the final quarter of 2009 to a reading of 120.1 from 147.1 in the September quarter, on HIA and Commonwealth Bank numbers, as more Australians found themselves priced out of the housing market.
http://www.businessweek.com/news/201...-update1-.htmlProperty prices in China rose at the fastest pace in almost two years in February, spurring warnings of asset bubbles. Hedge fund manager James Chanos said last week that China is “on a treadmill to hell” and that the land market is a bubble that may burst as early as this year. Pan Shiyi, chairman of Soho China Ltd., said April 10 excess capital has driven rapid gains in auction prices paid for land and fueled a bubble.
Rising local interest rates - seeing the stragglers arive to the party.....who just happen to be - <investors> - who supplant first home buyers, who are now priced out of the market. And so we move further up the unaffordability ladder.
http://www.businessweek.com/news/201...-update1-.htmlApril 12 (Bloomberg) -- Australian home-loan approvals fell in February for a fifth straight month after central bank Governor Glenn Stevens boosted borrowing costs and the government cut grants to first-time buyers.
Waning demand for approvals adds to evidence that Governor Stevens’ decision to boost the benchmark interest rate five times in six meetings is cooling domestic demand.
Australian banks have had their fill of 'easy' loan growth with easy, cheap funding? To the point of overexposure and at the expense of business?