Australian house price fall.

  1. 3.9k

    Reserve bank says 40% house price fall plausible.
    Could be a fair variance between city and country though, I'd imagine.

    1 like
  2. 3.5k

    illio9 Mar

    Property market due for a major correction imo......overcooked for too long and reserve bank trying to delay collapse by lowering interest rates in an attempt to stiffen buyer confidence.......but corona may turn out to create inflationary pressure, and the time when world governments finally realize that the globalisation model has a major Achilles heel, and the need for a basic level of industry needs to be supported in their own countries.

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  3. 4.2k

    when not if imo

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  4. 4.2k

    where are the rampers ?? go the dud

  5. 514

    BUY houses. They are going to 100 bag!


  6. 4.2k

    go the 10 bagger gold detector play LOL..good luck

  7. 514

    This is the property thread champ.

  8. 4.2k

    go the dud ..aul

  9. 3.9k

    National Australia's bank Chief Executive has revealed the warning signs pointing to a wave of mortgage defaults as the coronavirus recession worsens - and says those under debt pressure should be prepared to sell soon.
    On August 14 Mr McEwan suggested those who couldn't repay their loans should sell up before house prices collapse.

  10. 3.5k

    Investor markets will have little to no hope of capital growth imo and will focus on rate of return.....low end properties leased by renters thst are eligible for government assistance will be at a premium compared to higher value properties with tenant job security fading everyday.......low interest, high inflation and devalued currencies are here to stay for 3 -5 years imo.
    Imf, world bank crypto currency to be established as they are the lenders of last resort to nations and they will deem fiat currencies unstable and require debt to be repaid in the currency they establish. All imo.

  11. 6.7k

    the shift to regional areas is already in full swing IMO our major cities will never recover .

  12. 4.2k

    Stick the city in your life is tops

  13. 6.7k

    I cant argue with you sandy I got out of the rat race years ago. .

  14. 4.2k

    Yep chalk and cheese thing about the flu it makes the penny realestate
    Is a big ponzie scheme imo

  15. 4.2k

    Coronavirus recession: Unshackled banks told — go for loans
    Josh Frydenberg will ease the liability imposed on banks over so-called bad loans and shift responsibility to the borrower. Picture: Gary Ramage
    Josh Frydenberg will ease the liability imposed on banks over so-called bad loans and shift responsibility to the borrower. Picture: Gary Ramage

    10:30PM SEPTEMBER 24, 2020176 COMMENTS
    Lending laws imposed on banks during the global ­financial crisis will be abolished in a bid to inject an “adrenaline shot” into the economy by lifting onerous barriers for home buyers and small businesses to access loans.

    In a major structural shake-up of the 2009 consumer credit protection laws passed by the Rudd government, about 100 pages of regulation will be torn up to help funnel billions of dollars of locked up credit back into the economy.

    After warnings from the ­Reserve Bank of a credit freeze ­because banks were becoming too scared to lend, Josh Frydenberg will ease the liability imposed on banks over so-called bad loans and shift responsibility to the borrower.


    Turn off the hot-air mob, turn up the gas
    Small businesses, which face the toughest hurdles in accessing credit, will be the first to benefit from the deregulatory move to allow more credit to flow to consumers that would be essential to the economic recovery.

    At the other end of the pendulum, the government has pledged greater protections for vulnerable borrowers, low-income earners and welfare recipients at risk of extortionist conditions from loan sharks and payday lenders.

    But home buyers are set to ­become among the greatest beneficiaries, with the slashing of ­approval times for loans and the scrapping of inquisitorial processes by banks that, according to the Reserve Bank of Australia, had become excessively “risk averse”.

    READ MORE:Labor’s gas stance ‘an insult to workers’|Virus tipped to give us a migrant migraine|Simpler credit will help kickstart economy|A fighting strategy for jobs growth
    While the banks would still be accountable to the regulator, and would conduct their own risk ­assessment of borrowers as normal, they wouldn’t be required to meet the extra layer of red tape that under the current laws made them responsible for the intentions and capacity of the borrowers.

    This has led to banks being less willing to lend for fear of being held liable for the borrowers’ incapacity to repay a loan.

    Reforms for struggling small businesses are a ‘3/10’
    Small Business Australia’s Bill Lang says the reforms relating to struggling small business announced by Treasurer Josh Frydenberg are a good start but they do not cover every...
    Under the new obligations, which will require legislation, lenders would be able to base their loan assessments on information provided by the borrowers, who would be held accountable for giving the lender accurate information.

    This turns the principle of ­“lender beware” under the current laws, to one of “borrower ­responsibility”.

    Households and businesses ­access about $130bn in new credit every month, according to the Treasurer. But the arteries of the credit system had become clogged with bureaucracy, restricting the flow of credit.

    “The Morrison government is implementing the most significant reforms to Australia’s credit framework in a decade to increase the flow of credit to households and businesses, reduce red tape and strengthen protections for vulnerable consumers,” Mr Frydenberg said.

    He said the laws had become so absurd that potential borrowers were often forced to justify their discretionary ­expenditure on items such as Netflix before being approved.

    “The burden of regulation has been increasing and with it has come more obstacles for the consumer making it harder for them to access credit,” Mr Frydenberg said, writing in The Australian today.

    “From what started a decade ago as a principles-based framework to regulate the provision and consumer credit has now evolved into an overly descriptive, complex, costly, one-size-fits-all regime … over time, lenders have become increasingly risk averse and overly conservative in their approach. It is now not uncommon for a person applying for a mortgage to be asked to explain individual discretionary spending and provide verification of a customer’s Netflix and Spotify subscriptions, UberEats or MenuLog usage or other detailed information. All in order for the lender to be confident that it cannot be held liable in the event the borrower cannot repay the loan.”

    Master Builders Australia chief executive Denita Wawn said the reforms would be the most significant for decades. “This is a structural game changer,” Ms Wawn said.

    But the MBA said it would expect banks to in turn consider lowering the loans to value ratio of 80 per cent on home mortgages to lower the deposits required for first-home buyers.

    The move to repeal the Responsible Lending Obligations, hailed at the time by the Labor government as a move to protect consumers from bad loans in response to the GFC, will set up a likely showdown with the opposition in parliament.

    Central bank governor Phil Lowe warned last month that the principles of the consumer protection laws were “sound” but needed to be revisited.

    Treasurer will ‘take on one hand and give with the other’ in budget
    Josh Frydenberg will be “taking with one hand and giving with the other” in his forthcoming budget announcement by offsetting cuts to JobKeeper and Jobseeker, according to The...
    “We can’t have a world in which, if a borrower can’t repay the loan, it’s always the bank’s fault,” he said. “On a portfolio basis, we want banks to make some loans that actually go bad, because if a bank never makes a loan that goes bad it means it’s not extending enough credit.”

    Mr Frydenberg said that under the current regime, banks and lenders were legally obliged to verify the information contained in a borrower’s application, including detailed expenses often requiring line by line examination.

    Even if borrowers provided false or misleading information in their applications, the onus was on the banks to verify it. The responsibility being put back on to the borrower would reduce the risk of lenders being found at fault and forced to compensate borrowers for loans that they were unable to repay.

    This would be changed to become “proportionate” with the risk allowing for fast-tracked approvals that can often take several months.

    Assistant Treasurer Michael Sukkar said the changes would ultimately reduce costs for home buyers and businesses to access credit.

    “Now more than ever, it is critical that unnecessary red tape and costs are removed so that Australians can continue to spend or purchase a new home and businesses can invest in creating jobs,” he said.

    “For the first time consumer leases will be regulated by the federal government to protect consumers from unscrupulous lessors, including lending and interest caps, as well as giving ASIC the power to impose penalties for prohibited or excessive fees, charges and interest.”


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  16. 3.5k

    Well its official....scomo and frydenberg have lost the plot....opening banks to lend to clients with less safe guards to protect not only their well-being but the economy at large.
    With the almost onslaught of bank foreclosures on the horizon, it shows they have run out of ideas to manage the greater economy ....pitiful

  17. 77.9k

    awesome ... we will get a GFC replay . to add to all the other troubles we have

    but in reality those two lost the plot before Xmas 2019 BEFORE Covid

    if Despot Dan hadn't of totally poisoned the ALP brand .. Albo would have had an easy win next election

    the psycho in Queensland wouldn't been enough to stop Albo from an east in

  18. 6.7k

    Historically low interest rates will continue to underpin the housing market into the future the reserve bank still has a few levers left to pull , price fluctuations are a given I expect the gap between rich and poor grow will grow wider . construction has not stopped all sides of government agree that supporting development underpins countless billions in revenues and jobs I doubt interest rates going up anytime soon .

    1 like
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  20. 3.9k

    The housing market is not going to collapse after all !!!

    " Property market could be set for a boom and not a bust "

  21. 4.2k

    they have to talk it up ,,share mkt. house bubble thats all they got

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