Australian Homes Most Overvalued

Yahoo.com.au
We don’t want to scare you. However, according to The Economist, the latest quarterly index of global Australian homes are the most overvalued in the world, ahead of Hong Kong and France.

This is an international magazine telling us we are the most overvalued in the WHOLE WORLD. OK we are trying to scare you.

The key here is not to borrow against your houses for non-assets. If you owe $250,000 on a house worth $300,000 don’t take the bank up on their redraw offer (usually $50,000). Especially, if you are going to use it on holidays, cars or any other items which lose money quickly. If home prices fall as this article suggests, you might find you owe more than your house is worth.
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