PHOTO: Australian property
Australia is seemingly rushing headlong into another debt-fueled property binge.
Three interest rate cuts that have taken mortgage rates to a record low and a loosening of lending curbs have sent buyers flocking back to the housing market. At current boom-time rates of growth, Sydney home prices could recoup two years of losses and be back at record highs as soon as May
The sudden turnaround is raising fears of a re-inflated property bubble and risks swelling an already worrisome pile of household debt. It’s also further concentrating banks’ reliance on mortgages for earnings growth and entrenching inequality by making it harder for first-time buyers to get a foot on the property ladder.
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