In an Adelaide Advertiser article yesterday, Assured Homes Loans sales and marketing director Fred Rasheed was quoted saying “first-home buyers would experience “catastrophe” in the next 18 months.”
“A lot of people have got into the market and not even considered what will happen when rates go up 1 or 2 per cent,” he said.
“We’re about to say `sorry, you have to pay an extra $100 per week’. I think we’re on a path to disaster – you have new people in the market and these people don’t know what it’s like, all they know is 5.5 per cent interest rates and all they’re used to is rent going up $10.”
Young couples are “taking on loans they can’t afford” said Julian Disney, University of NSW’s Social Justice Project Director. “The economy and community are increasingly held hostage by inflated house prices, Until we stop, we’re heading for disaster.”
» First home buyers heading towards mortgage ‘disaster’ – The Adelaide Advertiser, December 18th 2009.