This is not good.
(Number is approx. and is based off of data from 3/5 "big" bank lenders. So let that number flex a bit. But even still. It's crazy to conceive that 1 of every 5 home loans isn't even paying off ANY principle 😧)
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This is sensible, treat houses like you are renting them for 10 years. Plan to sell and move out before the 10 year mortgage is up. The interest-only payments are less than 1/2 the rent for a similar house. Hopefully, the house increases in price over that time so you break even or maybe make a profit.
Haha. Wild. The payments aren't quite half. Have to also factor in prop tax, Strata etc... but then yeah... if number go up of value then it's a medium term rental with a perk. 😦😳😖
Depends on the interest rate. With low rates from 7-8 years ago locked in, the taxes are half the payment. Interest is about 1/4 of what a comparable rental house would be.
Yeah
Oh don't worry, if they all default at once the central bank will step in to bail out the banks
It won't happen at once. It'll be a small % and then before it gets too bad the rates will decrease slightly to triage the damage.
😳😦 is right. Ooooof
How does this compare historically?
Is the interest only a Covid plan?
Do you have any charts on this, would like to see how much its increased over the years, how the hell are people living just servicing interest? Especially with rates being higher for longer and if people are on adjustable that's only keeping the roof over your head temporarily
Somethings gotta give right? I assume they'll come up with some scheme because letting housing fall is too big a threat to the ponzi
When do they need to start making amortized payments? They fucked soon enough