Australians who are leading luxurious lifestyles beyond their means could soon find themselves in the red as housing prices plummet by ’40 to 45 per cent’.
The drop – backlash from the property boom dominating the market for the last decade – will see housing prices in Sydney and Melbourne decrease as banks tighten-up their lending restrictions and end low-interest loans.
In the past 10 years, many first-time buyers were able to snap up their dream homes with the help of generous mortgage loans from their banks.
Now, bright-eyed investors who purchased properties outside of their financial means have triggered the housing market’s downfall.
In the past 10 years, many first-time buyers were able to snap up their dream homes with the help of generous mortgage loans from their banks
One investor blames a generation of ‘IPhone’ users for the country’s property demise.
‘Because of the way the world operates, we expect to have everything now,’ Mr Bushy Martin told 60 Minutes.
‘If you’re getting at the very peak of the market a very basic lifestyle and having to live just to cover the mortgage,’ he added.
House prices in Sydney and Melbourne are expected to plummet to almost half their former asking price.
Experts have anticipated a ’40 to 45 per cent’ market to drop after banks tighten-up their lending restrictions and end low-interest loans.
Now, bright-eyed investors who purchased properties outside of their financial means have triggered the housing market’s downfall
Australia’s economy is more dependent of housing loans than anything else.
Data scientist, Martin North, said Australian’s are addicted to debt and are relying on the housing market.
One market analyst Louis Christopher said the housing prices are simply correcting after years of them being overpriced.
Some homeowners have been advised to ‘get out while they can’ and not sit on their property
Mr Christopher said that properties in Sydney and Melbourne were 40 per cent over overvalued.
Some homeowners have been advised to ‘get out while they can’ and not sit on their property.
‘The ones that can’t afford to sit should effectively sell – get out while you can,’ leading liquidator, Jamieson Louttit said.
‘I think the banks are going to cover their own arse,’ he said.