Quote:
Originally Posted by bhutocracy
Good. Sooner or later they'll stop buying shit they don't need and might even start saving again for the first time in 20 years.
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I'd agree with you, but I am not sure you are from Sydney. There are people who go out and build massive mansions on a laborers wage and than struggle to pay for it anytime their interest rate goes up. But most people in Sydney live in rather modest housing, in modest areas and still can't afford a mortgage. What's the minimum repayments on a $300k mortgage now days? $600-650 a week? Now try and find a house ANYWHERE in Sydney for $300k, you honestly can't. I am not a fan of people living beyond their means and perhaps you are right to a degree, this will push everything back further into a realistic range with people living realistic lifestyles, including house prices. I do however think a lot of very decent people, living within their means (or trying to) are being caught up in it as well. People with 3 kids, a fibro house and on a regular wage are really starting to struggle in Sydney at least.