Australian Property Bubble: 1. FHBuyer Mortgage $80K overpriced

Loading...

Sign in or sign up now!
Alert icon
Upgrade to the latest Flash Player for improved playback performance. Upgrade now or more info.
1,816
Loading...
Alert icon
Sign in or sign up now!
Alert icon

Uploaded by on Aug 14, 2011

Statistics you can access from the ABS that call into question why the average First home owner mortgage is so large and why there is a very real chance Australia's property prices will fall dramatically within 12 months.

  • likes, 0 dislikes

Link to this comment:

Share to:

Uploader Comments (AussiePropertyBubble)

  • interest rates were 17.5% in 1990 and 3.75 in 2011 ... why would average loan size follow a straight line?

  • @MrOdieT But the average loan size did follow a linear trend from 1990 till 1999 and rates droped 10% in this time from 17 to about 7%. Consequent videos explain, i believe the deviation, post 2000 in FHBuyer loans is due to more readily available funding to investors coupled with favourable concessions from government, bidding for the same entry level affordable properties as FHBuyers.

see all

All Comments (8)

Sign In or Sign Up now to post a comment!
  • Love the way you proof your points with statistics, we have done similar analysis by ourselves that a lot of current trends does not make financial sense. Now seeming your video reassure that we were sensible not to over leverage but continue to build our profiles in precious metals. So thank you for your good works, we need more people like you speak with honesty.

  • People are not being ripped off, property has no intrinsic value, it is worth what someone will pay for it... the market sets its value. The fact that property has 'deviated' from a short term trend with the FHBs doesn't mean it's a bubble that must burst. We have been told about bubbles for many years by many commentators, and the big fall is yet to happen. Does it mean it can't happen? Anything's possible, a longer term historical overview of housing prices doesn't support the assertion IMO.

  • Great video, thanks for posting it.

  • Prices are going to do nothing but continue to rise. They will stabilize, perhaps fall a little, and then continue to rise. I'm a 31-year-old Melburnian and I rent. I hate renting, but I have no choice. Obviously there's a property bubble. In my opinion, the market should fall by 65% - not $80,000. But it won't happen; the Australian economy rides on the greater fool's back and any government will do whatever it takes to ensure that is always the case.

  • You are being too kind $80000 you would have to be joking!More like$150000 that these people are being ripped off.

  • Excellent video! 

Loading...

Alert icon
0 / 00Unsaved Playlist Return to active list
    1. Your queue is empty. Add videos to your queue using this button:
      or sign in to load a different list.
    Loading...Loading...Saving...
    • Clear all videos from this list
    • Learn more