INVESTORS HIJACK HOME MARKET
We came from the UK and struggled to borrow five times of our income there (“The couple who asked strangers to share a mortgage”, 25/2).
Here we can borrow to eight and up to 10 times if we claim it’s for “investment purpose”. We are renting a $1500 per week house, for which the owner paid over $3 million at the end of 2017.
I’m only guessing they have to heavily negative gear, as the figures simply don’t add up.
The whole system in Australia is hugely in favour of investors and the house price is based on speculation.
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