This week on Inside Business, Alan Kohler interviewed Jonathan Plain, Chief Investment Strategist at HFA Asset Management on Unsustainable Lending Practices.
Jonathan mentioned many of the facts we have raised here.
“In actual fact, our house prices have risen more than they have done in Britain and the United States of America.
And we here in Australia very, very sadly have also turned our homes into glorified bank ATMs, and hence as a consequence of that household debt in Australia now is at an all time record high as in absolute terms and as a multiple of income.
If you look in fact at house prices in Australia over the last 80 years on an inflation adjusted basis, we are currently approximately 30 per cent above that 80 year trend line. So in actual fact for us just to get back to the trend line we would need to decline by 30 per cent so a 20 to 25 per cent decline is possibly quite conservative”
» Alan Kohler speaks with Jonathan Plain (Windows Media) – The ABC’s, Inside Business, 26th June 2008.
» Alan Kohler speaks with Jonathan Plain (Transcript) – The ABC’s, Inside Business, 26th June 2008.
Posted in Australian economy, Australian Housing | Comments Off