/biz/ - Business & Finance

>>11693575
>"...With significant price appreciation in the housing market in recent years, estimates from the Securitisation Datasbase suggest that many of the households currently facing an IO period expiry will have experienced significant growth in their equity in the property... "

Yeah you'd have significant growth in equity, until you don't.

It's like saying everyone should've maxxed out their credit cards to buy bitcoin because it was rising, until it wasn't. Now you have negative equity in your investment, and you need to start repaying the debt as well as the interest on your credit card.

But instead of buying $xx,000 of shitcoins, you bought $xxx,000 - $x,000,000 of property.

I can't wait for the IO borrowers to fall over from Principle repayments and then subsequent USFed rate rises getting passed on to AUS. Let the over leveraged buy high sell low.

And then the AUD will go to absolute shit, which will mean the foreign investors who had purchased during the peak would be at a loss in real terms comparative to their currencies. That'll make Australia attractive to some international investors because it'll be cheaper comparatively, but it'll mean all the old investors will be bearish on Australian investments and will share that bearish outlook with other cashed up foreigners. Hopefully that keeps the international capital at bay and real Australians get to pick up the newly for sale bad investment properties.