{"id":22170,"date":"2019-11-19T10:18:15","date_gmt":"2019-11-18T21:18:15","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=22170"},"modified":"2019-11-19T10:18:15","modified_gmt":"2019-11-18T21:18:15","slug":"household-debt-has-australians-living-in-house-of-cards","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/household-debt-has-australians-living-in-house-of-cards\/","title":{"rendered":"Household debt has Australians living in house of cards"},"content":{"rendered":"

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PHOTO:\u00a0Steve and Bev Jones borrowed heavily to buy the house they wanted. ABC News: Jason Om<\/strong><\/p>\n

When it comes to household debt, Australians are world record holders.<\/p>\n

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Key points:<\/h2>\n
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  • Australian household debt is close to 200 per cent of income<\/li>\n
  • Most of that is tied up in mortgages<\/li>\n
  • Commonwealth Bank CEO Matt Comyn says despite the debt, there is no need for concern while interest rates remain low<\/li>\n<\/ul>\n<\/div>\n<\/div>\n

    “We’ve got household debt to income on just a touch under 200 per cent, and that in my view is a massive macro risk,” Gerard Minack, economist and principal at Minack Associates, told 7.30.<\/p>\n

    “Why are Australians so in debt? Because we went out and bought houses.<\/p><\/blockquote>\n

    “Not built houses, went out and bought them and pushed the prices up to among the most expensive in the world.<\/p>\n

    “It is literally a house of cards.”<\/p>\n

    He has his fingers crossed that we do not head into recession in the next 10 years.<\/p>\n

    READ MORE VIA ABC\u00a0<\/a><\/p>\n