I always remember from 2015 when the housing melted up as first...

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    I always remember from 2015 when the housing melted up as first home owners kept getting priced out of properties at auctions blaming investors riding the generous NG in addition of loose bank loans. I revisited Prof. Steve Keen recently and if you see his chart of the private sector loans tipping points around the 100% of gdp in US, UK & Ireland (in 2007-2008), Oz escaped probably due to a few factors through Rudd financial engineering + Chinese stimulus at the time avoiding a recession. That private debt kept rising and I hate to use the term bubble but when it diverge from other developed nations, 3 decades of property growth has probably distorted the mindsets. This cannot keep going up this way, a devaluation is actually a good thing or else we start to emulate Japanese economy!

    I have never look at this sector in my analysis (amateur) but GFC started by yield chasing in property leveraged up by honeymoon loans and I suspect our version is interest only loans. This Scomo 5% first home deposit is reckless I reckon but I am not a property expert at all and I can see why it is a pump!
 
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