Oz bubble to inflate?

Experts are warning that the Government's mortgage relief scheme may further inflate the property bubble at the lower end of the market, because a growing number of owners of property in Australia are struggling to keep up with their mortgage payments...

The Government is trying to instill fresh confidence and get consumers spending again, despite the fact that Australia is not yet officially in recession.

However, data shows that a growing number of people are struggling to pay the mortgage, as unemployment levels continue to rise.

Some of the larger banks in Australia have vowed to work with people who lose their jobs, by offering repayment holidays of up to 12 months.

But Aussie Home Loans Chairman John Symond says that despite Government efforts to help, more people will still fail to prevent their homes being repossessed.

Mr Symond comments, "Whatever the Government agreement is with the big banks, I think in those cases (customers who are in severe negative equity), there may well be problems for the borrower."

Source: www.homesoverseas.co.uk/news