Gosh, reading that thread and that lady's posts was a real shock.
Her and her partner are leveraged up to the hilt, and as others in this thread have indicated, aren't even considering selling the properties, paying off the loans, and taking what small amount of equity remains - instead they are trying to find any way they can to continue all of the mortgages on an interest only repayment basis!
That could only be logical in a situation where there is an expectation that property prices are going to continue to rise - but all the evidence suggests this is not the case - even if she ignores the wider market, the bank valuers are telling her that the properties are worth less for the purpose of the LVR!
More concerningly, she is protesting the fact that the bank is amending the loan term from interest only back to principal and interest...but what about the next step? If the property is valued again 2 years down the track, she is in negative equity and the bank calls for a top-up?
I really hope that level of irrationality and ignorance is not widespread in property investment spheres, otherwise there will be a lot of people losing a lot more than just their paper gains...
