There are still some doomsayers out there saying property prices are going to fall – possibly even 40%.
And these experts chasing a headline are getting a lot of air play on social media.
Some are suggesting Australia is in a debt bubble, others are worried there’s a major world recession around the corner.
These pessimists are trying to stop you from getting rich!
Watch today’s Property Insiders chat as I discuss these negative predictions and get some perspective from Dr. Andrew Wilson, Australia’s leading housing economist and chief economist for MyHousingMarket.com.au.
Watch as we discuss:
- If the world is in for a recession in the foreseeable future and how the US China Trade Wars may affect us
- Is Australia at risk of a recession?
- Even if we do have a recession would we really see house prices fall by 40%
- There is really no debt bubble in Australia
- Debt today just as serviceable as ever because of low interest rates
Debt is in the hands of those who can service the loans due to more prudential lending.
- There are some green shoots appearing for our property markets including:
- APRA is removing its interest rate buffer – this will increase borrowing capacity for some people by 14%
- If RBA cuts twice this should increase borrowing capacity by 20% (with the APRA changes)
- 2 rate cuts would mean a significant change in people’s mortgage payments – a 12% reduction in payments
- A combination of the above will help those in mortgage stress
- Auction clearance rates are improving
- There is a deceleration in price falls
- Tax cuts are coming for many Australians
- FHB’s guarantee
from Property UpdateProperty Update https://propertyupdate.com.au/will-the-property-doomsayers-be-right/
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