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jared444

293 Posts.

18/07/17

16:36

Post #: 25935669
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Originally posted by Wiseman ↑

I had a "Big Short" moment yesterday and thought I would share it with you as I know there has been some arguing amongst some people here.

I work in the high end Brisbane real estate market selling properties $1-7 million and have just recently had a serious conversation with my Mortgage Broker that I refer my business to. He said that one of my clients just bought a home in the area and they borrowed 95% of the purchase price. This took me back abit as I had always thought the higher end market had the money sometimes even full cash. But he said that 90% of his loans are borrowing more then 90% of the purchase price and that he does loans all the way up to 98%.

He even told me about an investor who bought a $1 Million investment property last year though because he was on a variable interest only loan and it went up 0.5 % he has had to sell as he can't afford to own it anymore... Just 0.5%.

Now this is just in Brisbane and I would assume this would be even worse in Syd & Melb where owners are literally 5-10% full away from owing more money on their home then its worth. The RBA can't raise rates otherwise it will start a domino effect probably taking down the Aus housing market.

I am no expert in Bubbles but if this isn't one then I don't know what is.

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If only we knew you were a reputable source that post would be useful. Otherwise I'm betting my money on 'rumours'
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