RBA allowed Australia to become a servant to property prices
Michael is joined by Ian Verrender, ABC News Business Editor, about his recent article that looks at how the RBA allowed Australia to become a servant to property prices in a $9 trillion market.
Mr Verrender writes, ‘Australians now own $9 trillion worth of real estate. And the nation has whacked on an extra trillion in just the past five months.’
‘We owe around $2 trillion to our banks. And our banks are hugely geared to property, with around 60 per cent of their total loans in residential real estate.’
‘As for household debt, we are world beaters, regularly vying for top spot. As you’ve probably guessed, most of that debt is tied up in housing.’
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