Oddbean new post about login | logout Oh and I just checked the rates, so is AU mortgage rates 6.8% with the term 30 years, so you telling me the buyer ends up paying 13 million in the end? Good grief
This was likely either a Developer who will put 4 townhouses on the block and sell them for $2M a pop or a Chinese buyer who paid cash. Not even the top 1% can afford a $30k per month mortgage. https://i.nostr.build/zVyY.png
So no one actually lives in them then? I've heard most Chinese investors don't want to bother renting it out, they just want to park money that would otherwise have been lost to the CCP so better off pumping real estate in the anglosphere.
Correct no-one will be living in this house. Either a developer will knockdown and build to sell, or the Chinese will hold and maybe knockdown-build a McMansion but whoever dropped $4.7 million on this old shack guaranteed will not be occupying it.
30 year fixed rate mortgages are not a thing outside of the US
Not sure about fixed rates, but there are 30 year mortgages in EU countries
Those are definitely not fixed rate mortgages
Then a lot of people are getting rekt or in the process under these rates
Yeah, or central banks will lower rates soon and fuck over savers to bail out debtors. At the end of the day all of this is a war between savers and debtors about who will eat the losses.
100% savers versus debtors and it forces everyone to jump into assets of any kind, what I am keen to see is how long they can keep it on the savers side due to to the fear of inflation which can drive a lot of unrest if its to fast and is not a controlled demolition of the currency
