There are still some doomsayers out there trying to stop you from becoming wealthy.
And these “experts chasing a headline” are getting a lot of air play on social media telling us that property values are going to keep falling, possibly a total of 40%.
Some are suggesting Australia is in a debt bubble, others are worried there’s a major world recession around the corner or that we’re heading for the same fate as Ireland.
These pessimists are trying to stop you from getting rich!
to understand what’s really going on 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
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