Aus Property Market

[stoploss]

Anyone interested in this should do some reading on the results of this enquiry .
https://en.wikipedia.org/wiki/Royal_...vices_Industry

Its probably been a generation since anyone in Aussie saw the property market go backwards by a decent magnitude. It used to scare me a few years ago those property programs when you saw an auction .The parents go along with the kids , their limit is 600K , they pull out of the bidding and the father goes and pays 700K for a 2 bedroom concrete unit ....
" son you've just got to get into the market it only goes up " ...Never any worry about how they would pay the increased debt ..... The review above found at one bank something like 40 % of all loan applications did not have the expenses section filled in ....There is a huge amount of interest only debt rolling off the next 2 years that has to goto P&I , that could be the catalyst for selling now as presumably some of those million dollar mortgages on P&I are not affordable .
If you want a good book on what can go wrong when property turns sour "The bank that broke the bank " about Westpac in the late 1980"s and the period Kerry Packer took a 10 % stake in the bank , not a bad read.

https://www.abc.net.au/news/2018-06-...terest/9886430
Got a long way to play out yet this property cycle .....