4 ms·

I was under the impression that Australia doesn't have the 30-year fixed-rate mortgages that the US has. I assume this leads to having less of a locked-in real

• JenrHywy 4y ago
  In general, we have variable rate loans, though you can choose fixed rates for a certain period (usually 1-5 years). So yes, it should be more liquid than the US.
• neverforever 4y ago
  In theory yes, but in the most populous states we also have large stamp duty taxes that get charged every time you buy a house that lock people in. For a $1 million house I bought this came out to ~$40k. In general people usually renovate their houses or stay inside houses that are way too big for them instead of moving into one that better fits them.
  • tastysandwich 4y ago
    What's mental is that people buying $1m houses aren't anywhere near rich. That's just how much houses cost now. You spend years saving, and then the Government pinches most of your deposit!
• tastysandwich 4y ago
  You're correct. Most people have variable-rate home loans. In the past few years, fixed five-year loans have become more common. Basically you're on a fixed rate for the first five years, and then after that you're onto a normal variable rate. Most economists here predict house prices will fall further as people sell due to mortgage stress. At the moment it looks like most people are hanging on. Historically speaking, interest rates are still pretty low. And I think people are reluctant to sell due to fear they won't get a decent price, and that if they wait a few years house prices will be back up.