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Speaker: What almost everyone is missing about KiwiBuild

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  • Kumara Republic,

    Meanwhile across the Tasman...

    The southernmost capital … • Since Nov 2006 • 5410 posts Report Reply

  • Moz,

    It's worth noting that when the government (or the market) lowers the price of residential property and people do lose money on their properties, the ones who lose most are people who live in the house they own. To an investor the drop in price is a taxable event, so the government/taxpayer is covering a third to a half of the loss (this is another reason the government want to quarantine losses to the property that incurs them). But if you live in the house that's all your money.

    And for people like me who earn less than the $100,000/year my house is dropping in price even the current "slow fall" is not good news. I could easily go bankrupt if there's an actual crash. Along with most of that half of Australia who have mortgages.

    Sydney, West Island • Since Nov 2006 • 1169 posts Report Reply

  • steven crawford, in reply to Moz,

    And for people like me who earn less than the $100,000/year my house is dropping in price even the current “slow fall” is not good news. I could easily go bankrupt if there’s an actual crash. Along with most of that half of Australia who have mortgages.

    Is that when people are forced to sell houses because of job loss or such events, and the sale doesn't cover the mortgage?

    Atlantis • Since Nov 2006 • 4163 posts Report Reply

  • Moz, in reply to steven crawford,

    the sale doesn't cover the mortgage?

    that's the one. The term is "negative equity" and apparently about 20% of Sydney homeowners are in that position right now. I'm not. Yet.

    Sydney, West Island • Since Nov 2006 • 1169 posts Report Reply

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