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RE: The Ultimate Reason Real Estate in Australia is So Expensive
Back in 2008 - 2011 the real estate market and job market here in the United States got brutal. Places like Arizona where I live was hit extra hard. They say there are something like 20% of home owners in Arizona who are still upside down. The prices got cut in half when the crash happened and there would be entire neighborhoods with almost every house being foreclosed on. People would just strategically walk away.
Yeah I was watching all of that unfold from here and then saw the aftermath first hand living back in the States from 2011-2013.
One big difference here is that there is no such thing as a non-recourse loan. The bank will come after you and bankrupt you so people will not be able to just walk away if the housing market corrects or interest rates rise. It could become quite a debacle.