Housing Slump - Australia
Housing market looks bloated with borrowers on 'wafer-thin' margins
https://first2move.com.au
More than 2 million Australians now own at least one rental property, and more than a quarter of them own two or more.
Nearly 20,000 taxpayers report income from six or more rental properties. They're living the passive income dream — for now.
Household debt kills growth
The Bank for International Settlements warns high household debt will drag on economic growth for years to come.
But this orgy of investment, fuelled by the assistance of negative gearing income tax deductions and the lure of a 50 per cent capital gains tax discount, has severely bloated Australia's property prices and debt levels as owner-occupiers have scrambled to keep up.
Australian property prices have roughly doubled nationally over the past decade, led by massive gains for Sydney where the typical house now costs more than $1 million.
The rise in prices has been largely debt-funded, particularly over recent years as incomes have stagnated.
The Reserve Bank's measure of household debt to incomes has reached a new record of 194 per cent and is heading towards 200 — it's risen 16 per cent during the latest Sydney-Melbourne boom over the past five years, from already-high levels.
(Source: Australian Broadcasting Corporation )
https://first2move.com.au
More than 2 million Australians now own at least one rental property, and more than a quarter of them own two or more.
Nearly 20,000 taxpayers report income from six or more rental properties. They're living the passive income dream — for now.
Household debt kills growth
The Bank for International Settlements warns high household debt will drag on economic growth for years to come.
But this orgy of investment, fuelled by the assistance of negative gearing income tax deductions and the lure of a 50 per cent capital gains tax discount, has severely bloated Australia's property prices and debt levels as owner-occupiers have scrambled to keep up.
Australian property prices have roughly doubled nationally over the past decade, led by massive gains for Sydney where the typical house now costs more than $1 million.
The rise in prices has been largely debt-funded, particularly over recent years as incomes have stagnated.
The Reserve Bank's measure of household debt to incomes has reached a new record of 194 per cent and is heading towards 200 — it's risen 16 per cent during the latest Sydney-Melbourne boom over the past five years, from already-high levels.
(Source: Australian Broadcasting Corporation )
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