Rates rise, property speculation a mistake

[annielaurie]

Rates to rise, property speculation a 'mistake'

By business editor Peter Ryan

"I think it is a mistake to assume that a risk-less, guaranteed way to prosperity is just to be leveraged up into property," says RBA governor Glenn Stevens. (AAP : Dean Lewins)

The governor of the Reserve Bank has warned against borrowing too much to buy property, saying interest rates are likely to keep rising this year.

In his first television interview as RBA governor, Glenn Stevens told Australians that investing in bricks and mortar was no longer an easy road to prosperity.

Glenn Stevens normally talks to a select group of people, known politely as pointy heads - bankers, economists, politicians, journalists and a grab bag of interest groups.

However, today he found a new audience, telling Channel Seven's Sunrise program, that he is just a regular bloke doing his job ..

http://www.abc.net.au/news/stories/2010 ... ion=justin

[Senexx]

The rate rises based on property speculation are a mistake, yes.

That is not what the article says though.

"I think it is a mistake to assume that a risk-less, guaranteed way to prosperity is just to be leveraged up into property," says RBA governor Glenn Stevens.

In his first television interview as RBA governor, Glenn Stevens told Australians that investing in bricks and mortar was no longer an easy road to prosperity.

I would say it depends where you buy. If you're speculating in a major metropolitan area such as Sydney, I would agree.