Finance & Fury Podcast

Welcome to Finance and Fury. Today will be a flow on episode from “What will happen to property prices if we continue along our economic decline?”, which was posted about a month ago. Due to the updated numbers and banks coming out with their forecasts for price declines, we will cover property again. In the previous episode –looked at the Basics of property – where we were at prior to the government imposed economic decline Summary - In Australia – the characteristic of our property market prices being high come down to urbanisation, interest rates and regulations Urbanisation levels versus available credit (cash people have access to from savings or lending/mortgages of population) Concentration of people (higher demand with population levels) and the limited supply available when people are concentrated in living space But more importantly – it is the Borrowed funds by the population – household debt to GDP In conjunction with the urbanised population – higher the amount people can borrow or put toward