zerohedge.com / by Tyler Durden / Jun 7, 2017
Australians are dialing back their spending on everything from clothes to cars as sky-high housing costs, the result of a housing bubble fueled by Chinese buyers, threaten to finally derail the country’s twin asset bubbles – housing and stocks.
But rising mortgage debt isn’t the only thing squeezing Australian customers, as Reuters reports. Inflation on essential items like food, electricity and insurance is accelerating, meaning Australians are also paying higher prices for basic consumer goods.
Australia’s real-estate prices have been rising for more than 25 years with hardly a pause – the last time real estate prices saw a meaningful pullback was during its last recession, in 1987. Reuters reported Tuesday that Australia’s debt-to-income ratio has climbed to an all-time peak of 189%, according to the Reserve Bank of Australia.
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