shares get the chop property next, page-13

kalmsg
Point taken

Fortunately a lot of the low doc loans were to certain sectors - largely a favourite with self employed, seasonal workers, property investors - sure there are some dodgies but good equity was a requirement. With the US apparently unemployed folk were lent money with no hope of repaying but house price increases would take care of it. They then continued to collect welfare and play their x-box. May be an oversimplification but I reckon we did not go too far down that path. Lucky I guess - but with recourse on our loans we just can't abandon our homes - if I was in the US and bought a home for 600k and had a loan for 480 say and the house dropped to 400k I would be tempted to walk even if I could afford repayments. Here I could not - selling is not an option if I can afford repayments.