Search results

Key words there are; "If you are good with money". The figures are apparently that Australians spend 105% (or is it 110% now?) of their income. The USA - folks spend 105% of their income last time I heard.

I don't know, but traditionally the Banks would only lend on 80% of value, and a P&I loan only, and only m35% of income for repayments. If you use that as the criteria, then anything over 80% would be deemed more risky. Nowadays we hear of 90% and higher, LMI, 50% of income for repayments...

The normal process is a stagnation of prices. Falling prices would most likely occur if for some reason the interest rates started to rise again, and the over-leveraged have to offload in a hurry. It's ironic; this problem applies to the minority of purchasers (bought too late and have to sell...

Once Banks shift the goal posts on serviceability and LVR criteria and tighten them, a lot of folks won't be able to borrow even though the finance is cheaper... Less buyers around and the boom will end.