The Future for Australia is bright? Only if you are wearing rose tinted spectacles.
Australia never really felt the GFC, and we were really smug about that, weren’t we? Well, now maybe it is our turn to feel the pain, and it could be this year.
Do you have mortgage debt? Do you think that is covered by the value of your asset? If you suddenly lost your job, could you cover your mortgage from savings? For how long? What if you faced the prospects of not ever finding similar work again? You may need to rethink your position.
This article provides a few pertinent facts and outlines a scenario that may effect all of us.
For instance, Australia now holds second place for the highest household debt to GDP ratio in the world and is working towards taking over top spot from Denmark.
Yet our housing market is looking very shaky. What’s worse, our overall economy is even shakier still, with the prospects of massive job losses in the near future. No job – can’t pay mortgage – lose house – out on the street. A kind of replay of what went down in US and the EU back in 2008. The US in particular has never recovered from that, despite its fairy tale economic data manufactured purely for Wall St.
Still, you rolls your dice and you takes your chance. May the odds be ever in your favour. But don’t crack it if you find yourself in District 12.