Home buyers must be prudent - Rudd

[Property Dude]

Home buyers must be prudent - Rudd

FISCAL and monetary policy can only do so much to assist home buyers who, in the end, must make their own prudent decisions, Prime Minister Kevin Rudd says.

The Reserve Bank raised interest rates by 25 basis points on Tuesday, the second such rise since October.

The federal government also began scaling down its first home buyer grants scheme from September.

More: http://www.news.com.au/business/story/0,27753,26317422-31037,00.html

I can't escape the feeling that this sort of reporting is signalling some kind of temporary top in the housing market.

Rising interest rates, money moving back into the stock market, the scaling down of the FHB, and now even Chairman Rudd telling us to be careful!

Thoughts anyone?

[michlele21]

i thought the stock market in australia is down. :confused:

[vilablonde]

If it is opinion you are after, I can offer mine.

Kevin Rudd is a fence sitter and a backwards comment like that allows him to go either way when the market either rises or falls and he can say "I told you so!"

In relation to the actual article, the journalist is doing what they do best, create momentum ..... They don't generally care if it is good momentum or bad momentum, it is momentum all the same, which means then that they will have more to write tomorrow. (remember most journalists are paid per article!) I don't believe there will be a temporary stop over the next 3 months anymore than there generally is with xmas, school holidays, jan and feb recovery which historically happens every year.

People who are concerned need to remember that interest rates are low, very low, you can get a mortgage from Bankwest for 5% for crying out loud, that is just ridiculous considering our parents generation paid home loan rates triple that.

What's that awesome song, "always look on the bright side of life... do do do do do do! :biglaugh: