Thursday, February 02, 2006

Huge rise in repossession

Huge rise in repossession - National -

THE number of properties repossessed by banks was higher last year than after the recession of the early 1990s, as a growing number of overstretched investors were burned by Sydney's house-price slump.

There were a record 4873 cases lodged in the NSW Supreme Court's Possessions List in 2005 - a 59 per cent rise on 2004, and more than double the number of cases in 2003.

This compares with 3287 cases in 1991 as the economy recovered from deep recession.

Young investors defaulting on home loans was one factor behind a surge in legal action against borrowers last year, a court spokesman said.

But property always goes up 10% every year without fail! That's what the spruikers and real estate agents told me! I paid $5 000 for a 3-day course!

Thanks spruikers, thanks real estate agents, thanks state and federal governments who do nothing about capitalist waves or even offer inappropriate tax breaks to speculators, thanks ASIC, a paper tiger who turns a blind eye to get-rich-quick spruikers, thanks banks for offering interest-only loans to desperate young owner-occupiers or 'investors' and huge amounts of credit. You're all to blame. And further you think it's funny, because you've walked away with these people's money at virtually no risk to yourselves. Nice one.

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