As we all know, the US is going through some hard times with the sub prime crisis. But I couldn't help notice that it seems as if we are headed in the same direction. Back in the day, loans were walking out the door, property was booming... and now we are at a point where interest rates are rising, the real estate market is slowing down to a point that people are loosing on their property or are starting to default. I read that analysts are predicting another 2 interest rate rises this year (one this week) and this will bring up to 300,000 home owners to go under.
It all sounds too familar to what has happened in the US, only that we are about 1 - 2 years behind.... perhaps our banks and mortgage brokers will have some writedowns to reveal?UP TO 300,000 Australians risk losing their homes this year - smh.com.au http://www.smh.com.au/news/national/...801094694.html
I thought I would bring this topic to air as it really got me thinking and wanted some experienced voice on it