Oddbean new post about login | logout Not sure how old this, when the deal was done or what region they're talking about, but on their insta it was posted 3 days ago. Still the price is the least of my concern, more the terms of the deal, there is legit no room for anything to go wrong here or you're cooked https://www.instagram.com/p/C_IQlVCNCdA/
It is weird that people can still get interest only loans. I thought they took it away, but they must have brought it back. Our politicians would all be effected after all. As long as you have the stable job/income, banks are happy to lend as much as they can. Its earning them interest after all, and we all know property can never go down right?
I know nothing about the AU housing market, so interest only loans at this size had be literally shook! Can't miss a pay cheque, can't miss a rental cheque, can't afford to have your property dormant for too long, can't have too much cost in repair, can't afford property taxes to go up, there's just so much risk here, and clearly mispriced I get the person thinks they getting rich on paper, the agent gets commish and the banks pocket interest so everyone thinks they're winning but leverage is a funny old thing, its force multiplier going up and down I guess you're right though Aussies know housing can never go down if they're willing to sign up for x10+ leverage without blinking