Sydney has been dubbed as a ‘booming economy’ by a recent Domain article.
The article talks about mortgage default rates. In particular how some economies could experience slight increases in the rate. But in others with strong underlying fundamentals such as low unemployment, high job participation rates and stagnant interest rates there will be limited change.
For investors this is an important point to think about. Particularly unemployment which is sometimes an often forgotten measurement when analysing property markets. This single point of unemployment is one of the reasons why many so called ‘blue chip’ suburbs often remain stable during times of volatility. If you have a job, you have income and if you have income you can afford to hold your property.