Have we learnt lessons from the US mortgage crisis?

[Nicholas Wallwork]

The US mortgage crisis of 2007/8 literally shook the worldwide property sector and in many ways it has yet to recover fully. You can read the headlines, you can read all of the articles but the truth is that the US mortgage crisis arose because of human emotion, fear and greed. This is what is behind every peak and trough, every boom and bust and every investment cycle. So, have we learned any lessons from the US mortgage crisis?

There's no doubt that many mortgage providers have had their wings clipped, have had their assets decimated and will not necessarily be in a rush to expose themselves to the property market to the same level in the future. However, many investors have very short memories and once the worldwide economy recovers and starts to move ahead, you can bet your bottom dollar that the mortgage market will be booming again!

 

[Kristine]

I have learned a lot and I also have learn not to lose hope. I am sure that mortgage market will really boom again one day

 

[totallyproperty]

Hi Kristine

I have written about the Australian property market a lot in the past and it seems to have performed better than most? Would I be right in saying the larger gains have been in the larger cities (areas which attract expats) and while many people keep trying to talk the property market down, it is still doing fairly well?

The Australian economy has played a major role in this and the mining sector in particular has had a massive impact on property prices in popular mining areas.

Regards,


Mark

 

[totallyproperty]

Hi Aakarmi

I suppose this ties in with the saying "Wealth is not created, it is just transferred".

Regards,

Mark