Oddbean

I get this chick is following the incentives of housing 🏘️ always goes up, and tax maxing but holy shite batman i've listened to this clip several times and it continues to blow my mind that people are talking about x10 leverage on an illiquid asset like its so normal Aussie 🇦🇺 bros, how cooked are these people, interest only loans? Pulling out fantasy equity from a home after a year and refinancing? Where do I even begin? https://m.primal.net/KTdf.mp4 #realestate #ponzinomics

Must be an old video. You can't get anything for $300k these days. I'd love to see more property getting built to bring the costs down. Doesn't look like it's going to happen and everyone still thinks its up only.

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

Leveraging debt to gain assets in an inflationary environment. Now she just need to wait for her government to inflate away their debts and she is golden. Right out of the playbook of a 19 year old tiktoker. The risk is monumental.

Lol I get the theory you're going short the AUD but damn you must be super bullish on housing always going up at crazy compound rates, or a massive devaluation in AUD, how about some risk management here? I honestly wouldn't be able to sleep at night if this was me

awesome - so many people fall for the fiat ponzi which is credit based. It’s so incredibly high risk for small yield and danger of total liquidation is also high once prices go lower and margin call is there. Don’t do this shit!!

I get that its part of the game if you want a big ticket item house or car, but damn live within your means, shes 29 now, she's banking on this for 20 years to go her way, a lot of time for one thing to not go her way and leave her with zero. People are again mistaking leverage for genius