Now is not the time to buy a house. Or at least that’s what Karl Fitzgerald, a member of the tax reform group Prosper Australia, says. Decreasing housing affordability is a issue looming in everyone’s mind, especially young people.
But what’s driving costs up? The answer is not as easy as a lack of supply. It’s got more to do with mortgage financing and the risks imposed by unscrupulous lending. Our situation is not quite as bad as in the US, but there are some frightening parallels.
Read Ben Eltham’s analysis of Australia’s overvalued housing market in New Matilda here.