Here you ladies and gentleman this is sustainability at its best.
Borrowing is so regulated it allows this, it's ok though they are all tested at 7-8% above this so they still have $50k on average to go before the suburbanites are stressed aigh Pete?
If your debt burden remains the same, and your 600k asset rises by 200k, you have created 200k for yourself from nothing, as everybody in sydney melbourne and soon everywhere else is doing.
Simon_S
11 Jan 2017, 05:38 PM
LOL.....DEBT is WEALTH.
Further to that, if the average debt burden has risen by 33% since 2012, how much have dwellings risen by in that same time frame? anything between the debt and the equity is profit.
If your debt burden remains the same, and your 600k asset rises by 200k, you have created 200k for yourself from nothing, as everybody in sydney melbourne and soon everywhere else is doing.
You are assuming that interest is now waived by the banks? In the very short term that $200k would not cover your costs, in a 33% fall it would be a blessing to be $209k under water. You see it's all relative .
While we're conjuring up imaginary shit imagine if it was 100% instead of 33% 🤗, woooooow
Here you ladies and gentleman this is sustainability at its best.
Borrowing is so regulated it allows this, it's ok though they are all tested at 7-8% above this so they still have $50k on average to go before the suburbanites are stressed aigh Pete?
Not often you see these kinds of metrics shouted out in the media. Suburbanites are going on a bender. Would be good to see a regression of changes in average mortgage values as an independent and changes in house price values. Good way of directionally testing the hypothesis that debt is driving house prices.
You are assuming that interest is now waived by the banks? In the very short term that $200k would not cover your costs, in a 33% fall it would be a blessing to be $209k under water. You see it's all relative .
While we're conjuring up imaginary shit imagine if it was 100% instead of 33% 🤗, woooooow
Well i just picked round numbers.
The numbers closer to the money for a lot of people would have been 600 - 700 to 1.4mil+
freestanding homes im talking about, units not much different dependent on area.
Interest doesnt need to be waived by the bank, the remainder of the interest is only payable if you sit on the mortgage, if you sell tomorrow, you cash out out your profit, pay the loan off and you have 200k less expenses in my scenario.
700k profit in the 2nd scenario, assuming assets have been held for longer than 12 months would be hit with CGT, but at a 50% discount, assuming its an investment property, if its your ppor there is no cgt whatsoever so you'd probably get 600k to yourself. Loan interest would have been payable for the length of time that you are making payments, but not after the loans paid off. i.e. your weekly payments.
The numbers closer to the money for a lot of people would have been 600 - 700 to 1.4mil+
freestanding homes im talking about, units not much different dependent on area.
Interest doesnt need to be waived by the bank, the remainder of the interest is only payable if you sit on the mortgage, if you sell tomorrow, you cash out out your profit, pay the loan off and you have 200k less expenses in my scenario.
700k profit in the 2nd scenario, assuming assets have been held for longer than 12 months would be hit with CGT, but at a 50% discount, assuming its an investment property, if its your ppor there is no cgt whatsoever so you'd probably get 600k to yourself. Loan interest would have been payable for the length of time that you are making payments, but not after the loans paid off. i.e. your weekly payments.
Being a pimp I'll just assume you are smoking your way into dilliriam.
Not often you see these kinds of metrics shouted out in the media. Suburbanites are going on a bender. Would be good to see a regression of changes in average mortgage values as an independent and changes in house price values. Good way of directionally testing the hypothesis that debt is driving house prices.
Terry - as an accomplished data analyst, perhaps you can explain us *exactly* what this data is? Where does i come from? What does it mean? Is it just new mortgage sizes? Is it different from similar data that the ABS publishes and if so why?
For Aussie property bears, "denial", is not just a long river in North Africa.....
Terry - as an accomplished data analyst, perhaps you can explain us *exactly* what this data is? Where does i come from? What does it mean? Is it just new mortgage sizes? Is it different from similar data that the ABS publishes and if so why?
What your long term view of property presently, i know you have several from memory in syd, and quite a bit of experience.
Terry - as an accomplished data analyst, perhaps you can explain us *exactly* what this data is? Where does i come from? What does it mean? Is it just new mortgage sizes? Is it different from similar data that the ABS publishes and if so why?
Well all we know is that it is an aggregate of mortgage loans from a consortium of mortgage brokers (heavens forbid). Definitely not for the prying eyes of the likes of people like me who might ask prickly questions. The main question you need to ask is how representative the data is of the whole total mortgage market.
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