Quote:
Originally Posted by Nesti
In the 1980's rates peaked over 20%...how much of Australia would be wiped-out if those times came back? The average Australian citizen cannot afford a rates spike, we owe twice to three times as much as we did back in the 80's in proportion to income. Most of our middle class would become extinct within months.
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I remember those days. Fortunately half my loan was capped by law.
Most of the reason Sydney prices keep on skyrocketing is the laws of supply and demand. This morning it was said it is now cheaper to build a 2 bedroom inner city appartment than a 3 bedroom house in the burbs.
There is something of the order of $100K in government fees and charges on a greenfield site.
My mortgage is in credit, just waiting for us to pick the next set of renovations to wipe it out again.