Economist warns of sub prime property crisis in Australia

Discussion in 'Australia Property' started by Nicholas Wallwork, Mar 28, 2011.

  1. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    Rising property prices could result in a mortgage crisis in Australia that could be as harmful as that in the US that sparked the global economic crisis, a conference in Sydney has been told. The possibility of a sub prime mortgage crisis results from prices being 20% higher than they should be and people just [...]

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  2. Annie_Smith

    Annie_Smith New Member

    This means high-risk loans

    It will result in borrowers with little or no income, little or no equity and a poor credit history have been “given” variable interest rate mortgages they could never have been able to afford.

    In simple terms these are high-risk loans.
     
  3. mattio

    mattio New Member

    Agree with Annie. It will be high-risk loans with high interest, which have a high probability to end up in foreclosure.
     
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