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Experts warn of ‘debt bomb’ as housing downturn worsens

AUSTRALIA is facing a “debt crisis” — and the property market and our entire economy are at risk as a result. That’s according to the sobering 60 Minutes segment Bricks and Slaughter which aired last night, revealing the country’s property downturn was just the tip of the iceberg. According to reporter Tom Steinfort, the current slump is actually “more […]

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Australia:Why you can’t blame Chinese investors for Australia’s property bubble

The scale of Chinese investment in the Australian residential property market continues to polarise public opinion. Chinese buyers are often blamed for driving up house prices in Australia and causing the current affordability crisis. However, Chinese offshore purchases are surprisingly low. Based on Foreign Investment Review Board (FIRB) approval figures, ABS data, and our own […]

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Australia’s housing market is looking a lot like the US, Ireland and Spain before the global financial crisis.

Australia’s big four banks are among the largest and most profitable financial institutions in the world. Despite this, it is mathematically impossible that these banks, primarily focused on domestic retail operations, could be as big and profitable as they currently are without one of the following taking place: either each of these banks, in their […]

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Most Australians still want to get on the property market

MOST Aussies still think it’s a good time to get into the property market, despite house prices surging in Sydney and Melbourne, a survey has found. Sixty per cent of the 1,010 respondents polled in CoreLogic RP Data-Nine Reward’s housing market sentiment survey, released on Friday, considered the June quarter to be a good time […]

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Australia’s property market risks being overvalued, says global investment bank

Australia is at risk of an overvalued property market, according to a leading global investment bank. Credit Suisse argues that rising house prices become problematic when accompanied by rising household debt – which is presently the case in Australia. “Price increases are not yet necessarily a problem in themselves; the risk of overvaluation often arises […]