A recent article in the Daily Telegraph has revealed that first homeowners that have taken advantage of the first home benefits offered by the Government are now under "mortgage stress".
The articles says
"Just weeks after the grant was officially withdrawn, a survey of more than 26,000 borrowers conducted by Fujitsu Consulting revealed that 45 per cent of first-home owners who entered the market during the past 18 months are now experiencing "mortgage stress" or "severe mortgage stress"."
The Survey further revealed that thousands of homebuyers are using their credit cards just to meet mortgage repayments.
In my opinion, at some stage this will all come to a head and the credit card will reach its limit. With rising interest rates this can only mean more properties coming onto the market for sale.
Further, with Banks tightening their lending criteria, we may see real estate prices fall and at best remian "subdued" for at least 12 to 18 months.
To read the article click below
http://www.dailytelegraph.com.au/news/no-hope-for-aussie-homebuyers-as-thousands-struggle-to-foot-the-mortgage-bill/story-e6freuy9-1225825025688
Time for caution.....
Opinion by Dean Carver
Solicitor
Solicitors Property Centre - Sydney
