Fed: RBA warns house prices, debt risk to stability
Economy (CANBERRA)
Australia’s central bank has warned high house prices and
household debt are putting the nation’s economic stability at risk.
In its first-ever stability scorecard, the Reserve Bank says the
financial sector is basically in good shape, with banks in
particular reporting strong profits and few bad debts.
But the Reserve says it will closely monitor global markets for
signs that low interest rates have fuelled excessive lending.
It warns Australian businesses are not immune from any global
shake-out.
The scorecard also reveals the ratio of house prices to
household income is at a record high.
The bank says there are few signs households are having trouble
repaying their loans, with 60 per cent ahead on mortgage payments.richmond – thanks for the article.
I replied to the topic of one’s net wealth, and wondered where my wealth had disappeared to! Then I remembered, I had more GROSS “wealth” before I sold an IP. I also had more DEBT, which was bothering me- making me feel trapped. When I sold the place, I breathed and slept a lot more peacefully.
I know one has to put in to get returns, but I feel really happy when my debt level is super-manageable [strum] I don’t need the stress of being in debt up the wazoo. My LVR has remained about the same, and I own one less property, but the profit paid off a huge whack of my mortgage.
Has anyone else recently paid off some debt and feels good too?
kay henry
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