Mack67
Some logical conclusions from that article.
Firstly it is probably a good thing that the greater number of loans in Australia is backed by property and not more flippant types of spending like shares and cars/boats etc. Property is a solid backing for a loan.
Secondly. A lot of those so called interest only loans are probably from Super funds and in the Sydney/Melbourne market where the price has risen astronomically in the past 5 years, so a lot of the asset backing for those loans is in the plus big time.
Thirdly. What a ridiculous thing to say "Only in a bubble could making a loss be viewed as a positive".
Well that what negative gearing is all about, structuring the loan so the loss pays for the property and it has been going on for how many years?
Another uninformed comment. "House prices are totally out of whack with everything". This is because of the Sydney/Melbourne property market, elsewhere in the country life goes on as normal.
The charts for household debt is just alarmist imo. How much of the debt is backed by equity in property??
A lot of alarmist comments without much information to justify those comments.
Need a lot more information on these claims, like how much equity is in those assets and how much of the household debt is backed by prudent investment in property??
So much unanswered in that article.
- Forums
- General
- The housing ponzi scheme
The housing ponzi scheme, page-2
-
- There are more pages in this discussion • 10 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)