On Sunday, Australian interest rates will still be 3.75%, a rate last achieved by a Coalition Govt in 1965
On Sunday, Australia will be one of only 7 countries in the world with a stable AAA credit rating from all 3 major ratings agencies
On Sunday, interest rates will be the lowest since 1965. The only problem is, there will be no borrowers.
due to the governments, committes interventions clamp downs etc, lending policies have changed.
Prior to the existing alliance of parties loosely known as a government, it was possible to borrow up to 95% of equity.
Now, equity does not come into it all. Teh country is back to where it was pre world war II
.
An example
Median house price in Sydney is around 650k-750k. Under the coalition, if you had $50k deposit you coukld afford that house.
Under labor & their restrictive intervention, the same guy, earning the same money Now needs to ahve $250k deposit!!!
Now seeing the top endo f the market drags along the bottom end of the market, you can safely say that very few people are now able to buy a house in Sydney or othe rexpensive locations like the Gold coast, melbourne , perth etc.
And after the GFC everybody has a lazy 250k hanging around.