It’d be such a shame for people in $1m houses to have their houses devalued. I’d feel really sorry for them.
2 Likes
If you take a loan out and only use it to invest in shares or a fund the same rules apply as far as I know
Ah ok. No probs.
Thought it may have been a stab or something as we were quite clearly talking about property.
I feel for people who have been forced to pay $1m for a house that is only really worth half that because the p*ss weak government wont reign in Chinese investors from snapping everything up.
As explained above it’s not just the people who own each individual house worth a million dollars now being worth 750K, it’s the cumulative effect across entire sector.
Imagine a 25% drop in value in retail sector, major problem.
And the problem will be felt elsewhere, the effects on our terms of trade due to lack of foreign confidence would be devastating to the economy as a whole
1 Like
They’re contributing to the problem but not the cause. Low/non-existent wage growth and lack of supply are just as bad, along with free rein investing with little to no oversight
hang on didn’t you just say you had 3 mortgages…
glass houses and rocks
You might if they have their super tied up in their property and they are forced on to the age pension. Especially if there are thousands of them.
I don’t think the conditions that would lead to a large collapse like in the USA are here. The percentage of buyers being financed way beyond their capacity to repay is very small here in Australia, I believe. It was one of the main problems in the US. A gradual lessening of the perks/rorts that investors enjoy would go a long way towards more people buying their own home. Personally, I believe that housing should not be a fast buck investment like it is now. Over time and done gradually, the government should put various legislation in place that would make it unattractive to speculate in the housing market. If people have big bucks to spare, make it attractive to invest in industry. Surely the human race can evolve towards a non dog eat dog scenario, which has been the norm for ever. There is more to being kind than ‘being kind’.
1 Like
They could probably sell that property and live out their years somewhere cheaper with a lot of money.
1 Like
I suppose you could do that depending on the level of your health and what health services you’d need. Also you might want to remain close to your family. You might be the babysitter to your grandkids and that sort of thing.
Like you though I won’t feel sorry for investors who only have property if the market crashed and burned. Eggs, basket and all that.
After facing condemnation from both sides of politics for releasing a video just hours after the attack calling for the hashtag #Pray4MuslimBan to be used in place on #PrayForLondon hashtag as a way to “solve the problem”, Senator Hanson remained defiant.
“Let me put it in this analogy - we have a disease, we vaccinate ourselves against it,” she said on Friday.
“Islam is a disease; we need to vaccinate ourselves against that.”
@Riolio did you attend that meeting yet?
Unfortunately I’ll “miss” it
1 Like
Depends how underwater the price crash left them. Banks were lending against deposits of 5% or less. If you bought a home for $1m, borrowed $950k, and then saw the value drop to $700k and the repayments increase to unaffordability when you still owe $900k of the principal, you’re deep in the pooh.
Conventional wisdom would be ‘those idiots shouldn’t have done that and will go broke as nature intended’ but there’s enough of them that if that happens, everyone gets spattered with the fallout.
Wish I had thought of getting myself into so much debt everyone would be scared for me to not meet my obligations sooner.
1 Like
I thought ON were anti-vaxx?
3 Likes
The old, … Too big to fail!! gambit.
Maybe not if their houses are devalued. Not if they have a big mortgage.
And often that $1m house is a three bed one bath in an area that has become fashionable. There is a not a lot to downsize to in many cases.
And the real issue most people don’t think about is, when people are forced to downsize they cant afford to buy in the same area. They tend to have to move away from friends, family, services and transport.
Its costs the community a whole lot more in extras.
I agree with the investing in industry. Governments should be doing a lot more to keep our industry, as well as to develop new industry. They just don’t seem to have a clue what they are supposed to do.
So some people should be protected from market conditions but not others?
I know we’re dealing with a lot of hypotheticals, but still.