What GFC? Australians catching up with the US subprime mortgage scandal
The Australian federal government is looking to invest in infrastructure to get the country through and expected residential building and residential sales down turn according to this article:
I do think investing in infrastructure is a smart way to boost the economy. It is sustainable and actually produces something concrete along with skilled jobs and better, safer communities if the money is intelligently allocated.
Foreign property buyer interest in Australia halved:
Australians, and Australian banks, learnt nothing from the lessons of the US subprime mortgage crisis and many are destined to repeat the mistakes. Low Doc Loans given out like candy, so adults respond like spoilt children in a candy store with predictable results:
Unfortunately for families who accepted huge mortgage debt and are staring a rental existence in the face, in Tasmania at least, rental properties are few and far between. In today's Mercury (27th April) on page seven, they report a halving of available rentals in southern Tasmania since four years ago. Let's hope that the Federal budget looks at giving people some relief so that they can keep a roof over their heads. Unfortunately, things will likely get worse before they get better. A public housing building infrastructure and/or purchasing of existing housing by the Federal and State Governments may be the best way to handle this impending crisis. Of course, rents will likely plummet along with housing prices over time.