| Copyright (c) 2010 Nadine Davis | | | | really crop up, so the problem never intensified to |
| Many times, it's easy to forget that economic | | | | the same degree. |
| conditions around the world can have an impact on | | | | Several other factors have helped Australia weather |
| how we live out everyday lives here in Australia. | | | | the global recession quite well. They include: |
| Although our property market has largely withstood | | | | Banks Working with Customers - In Australia, most |
| the recent global recession, it has still had an impact in | | | | banks try to work with their customers in order to |
| other key ways. Why is the Australian property | | | | help them avoid repossessions. Seperate from what |
| market so different from markets elsewhere in the | | | | has gone on in the USA, where many thousands of |
| world? You can read on to learn a little more. | | | | people have had their homes foreclosed upon, most |
| Stricter Property Lending Rules: | | | | Australians are able to stay in theirs. This helps |
| Compared with many countries, especially the United | | | | mitigate the effects of the global recession. |
| States - Australia has fairly strict property lending | | | | Lots of Space - If there's one thing that Australia has |
| rules. As most buyers agents can attest, getting | | | | in abundance, it's space. One of the precipitating |
| approved for a mortgage in Australia is no easy feat. | | | | factors of the mortgage crisis in the U.S. was rapid |
| At the same time, it is not as if you have to be | | | | escalations in housing prices. This was brought on by |
| swimming in cash to buy a home in this country; you | | | | housing shortages, in many cases due to a lack of |
| simply have to clearly demonstrate your ability to | | | | space. There's plenty of room in Australia, so housing |
| pay for a mortgage. | | | | shortages aren't as likely. |
| One of the biggest factors that precipitated the huge | | | | Employment - Although unemployment rates have |
| housing crisis in countries like the U.S. was lax lending | | | | been rising in Australia of late, they've been mitigated |
| rules. Amazingly, several banking corporations and | | | | a little by labour shortages in the mines. This has |
| financial lenders actually lessened their required criteria | | | | helped to cushion the blow, which is important since |
| for homeloans to the point where an individual could | | | | when people don't have jobs, they can't buy or |
| basically sign written statements in explanation of | | | | afford homes. |
| their income with no actual proof - without providing | | | | Ask any buyers agent, and they'll tell you that the |
| any additional documentation. Needless to say, this | | | | property market in Australia is more complex than |
| meant that many sorely under-qualified people were | | | | this article makes it seem. Many factors go into its |
| getting approved for mortgages. As more and more | | | | success or failure; for the time being, all looks quite |
| people defaulted on their mortgages, the crisis began | | | | well. |
| in earnest. In Australia, these lax lending rules didn't | | | | |