Australian residential markets are in decline and many people find they owe the bank more than their home is worth – i.e. they are in ‘negative equity’.
So, what does the government do – and the opposition agree to? They agree that instead of new home buyers having to put up a deposit of 20%, they will only have to find 5%.
How stupid! Come and put you head in this mortgage noose because we’re both trying desperately to stop this bubble which has extended in Australia since 1996 from deflating further.
Don’t let the market do it’s thing, let’s create a US-type ‘sub-prime’ mortgage catastrophe!