Australians Face Huge Spike In Repayments As Interest-Only Home Loans Expire
>In 2017, the government cracked down hard on interest-only loans. Those loans generally have an interest-only period lasting five years. When it expires, some borrowers would simply roll it over for another five years. Now, however, many will not all be able to, and will instead have to start paying back the loan itself.
>That extra repayment is a big increase. Even though the interest rate falls slightly when you start paying off the principal, the extra payment required is substantial.
So now we have a stalling economy, rising interest rates, less Chinese investment and 30% of all loans being interest-only loans and the interest-only period expiring soon. Also we have 300 cranes currently constructing units in Sydney.
I can't fucking wait to see the boomers and Chinese investors lose their ASSES on loans they can't afford.
For each Chinese loss there are 10 more new chink millionaires waiting to buy the dip.
Elijah Gray
Thank you for witnessing my trips.
Shadilay, brother.
Here's some more facts, interest only loans comprise THIRTY PERCENT of all loans in Australia. Most don't even know they have interest only loans.
There are 500 BILLION dollars of interest-only loans, that's almost as big as the 800 billion dollar bailout that occurred in the US despite Australia being 10 times smaller as an economy.
Dude, I study accounting and have infiltrated many Chinese.
The fact is, most of the Chinese coming here can't afford the houses they buy. Most of them tell me they just need a 20,000 dollar deposit and then the Chinese government gives them an interest-free loan for the rest.
Then they rent the house out to tenants and can afford to pay back the loans because it's basically interest-free.
Luke White
>When your Brick shit house isn\t wort the land it was stolen on
Has your govt been supplementing the existing supply of petrol to lower the cost to the public, or?
Ryder Thomas
The whole “Chinese investing in West Coast US, Canada, and Australia” real estate plan is utterly retarded. They are inadvertently propping up all those countries economies and giving them free money.
China is still completely oblivious about how to play geopolitics.
David Watson
You "own" the house as long as you are paying interest but you aren't paying off the loan.
If you default at any time, the bank takes ownership of the house and if they can't get back the whole loan at auction, you still need to pay off the remainder. In Australia, we are raped by Jewish bankers more than Americans ever were during 2008.
Ethan Turner
does this mean i can afford a house before i am 40?
Anthony Perez
it's the grand acquisition for china
Mason Hernandez
I don’t hate the chinks but these house prices really need to come down
Kayden Roberts
Yep. We need to follow New Zealand and ban foreign investment. Who knew the kiwis weren't total fucking retards? I didnt
Xavier Thomas
Bring me up to speed. Why can't you buy more oil?
Jose Hall
One belt one road could be a stroke of geo political genius if it works like they think it will.
Evan Cook
If the Chinese government is giving them interest free loans that's even worse. The Chinese government effectively has bottomless cash reserves. In a crash, they'll just be able to keep on buying up property.
Yes, buy gold an silver now, wait for the crash then sell the metals and buy housing at the bottom of the market.
This is the way to create generational wealth.
David Brown
Australians are fucking stupid who wou rather sell things to anyone rather than being self sustainable.
We even exported our recyclables to China because we are primitive when it comes to recycling. Now that China has banned importing garbage, we're fucked even more.
Benjamin Cox
at a certain point, we just need to identify all chinese-owned real property and burn it.
Elijah Nguyen
That just sounds like renting
Justin Morales
Singapore power industries already beat them to it
James Gray
Nah, the insurance would pay out, assuming they have it. Just keep breaking their windows or something so they have to keep paying excess on insurance claims.
Jace Sanchez
Jesus fuck, I believe this.
James Barnes
>take a loan >never pay down the principal
Holy fucking shit!
Caleb Gomez
Whites need a war
Jordan Davis
>interest only loans
Who the fuck comes up with this shit? This is probably the financial instrument someone would come up with if they specifically wanted to create a bubble.
David Ross
They've been causing world wars forever.
Cameron Richardson
Don't forget the wildlife and fires
Thomas Ross
sounds like it, except you need a loan to rent an apt now
Juan Perez
Le cuck
Why do you think the housing market has exploded since 2000? Immigration and foreigners buying up and being given our housing
Josiah Rodriguez
Honestly, get fucked you white slimy fuck. I am Indian and between our family we own 4 houses. My sister owns one, my brother one, my parents one and I'm half in with my dad on another property in Vancouver, BC.
You scum are whining about not being able to afford a house? GET FUCKED YOU PARASITES! You niggers are nothing but welfare sucking cunts that should honestly be gassed. If you can't afford a house, THAT'S YOU FAULT YOU DUMB FUCKING AUSSIE FAGGOT!
Step 1. Get off welfare. Step 2. Get a fucking education. Step 3. Get a job. Stop 4. Make MONEY INSTEAD OF LIVING ON WELFARE! Step 5. Afford a fucking house.
Un-fucking-believable. This is worse than nigger behaviour.
People just use something called negative gearing to claim the interest expense on tax and wait for their property value to rise. Property doubles in price every decade here.
>interest only loan Who thought this was a good idea?
Nolan Cook
keynes saves the day
Asher Ramirez
>A geopolitical strategy that is so publicly known as One Belt One Road will work
Lol, Countries would just realign themselves to kill the new Silk Road if China got too powerful. Kissinger at least had the intelligence to craft a strategy based upon the fact that countries next to each other always hate each other because it’s the only way for them to increase their power, and created contingency plans to just switch sides and still effectively keep the balance of power in the US’s favor.
China is small time.
Landon Reyes
>So now we have a stalling economy
B-but Scomo said that the economy is good last night during the budget!
What makes you think a crash will be meaningful when we keep importing 200,000 immigrants into our largest cities every year? If you look at the budget you'll know they need this immigration to keep our economy growing.
Xavier Davis
I'm wondering when the American market will dip. Our prices aren't as bad as yours but it's getting up there. Around my neck of the woods non-shithole houses start at 200k even out in the sticks but the median wage in the county is like 45k. I have dutifully saved my money for the crash but it's taking forever.
>economy growing >immigration must have missed something
Kevin Garcia
One word "automation"
We dont need immagration. do you have the ability to look 20 years into the future?
Julian Reyes
It grows but it isn't meaningful in anyway to the average person and crowded cities reduce our quality of life. I agree but immigration isn't stopping anytime soon, and Pajeets and Changs still want to buy houses
Asher Ward
Yeah because importing APEX gang members has helped our economy so much.
If you think our housing prices are influenced by Indians working under minimum wage at 7-11, you're retarded. This bubble is fueled by DEBT, not immigrant income.
>I agree but immigration isn't stopping anytime soon, and Pajeets and Changs still want to buy houses Why is it their fault and not the government's fault for putting in systems that can be easily exploited?
Mason Brown
Nigga, why don’t you just buy your own land and build a house further inside the country? You have plenty of room. Americans on the west coast just moved East and South for cheaper housing after the chinks started buying up housing.
The climate is pretty harsh as soon as you leave the coast.
Also no infrastructure or jobs.
Lincoln Perry
Because it's basically wasteland with no infrastructure.
Jayden Sanders
Food bowl
You have to feed 1billion chinese somehow
Ryan Thomas
And don't forget, the drug abuse, dangerous wildlife, lack of infrastructure, boredom and crime.
Easton Clark
is there any groundwater past the coastal areas? i mean, i get that it's desert, but a lot of deserts have groundwater within 100 feet bgs
Daniel Walker
>What is air conditioning
If the US can create a city like Phoenix in the middle of a complete scorching hot wasteland, surely the Aussies can too.
Liam Rivera
>stupid >not just corrupt and selling out they're countries interest for money in their own pocket Truth is they don't care about this country, and they can get away with it as long as we think they are only incompetent
Austin Flores
99% of Australia is uninhabitable, post apocalyptic wasteland - we are literally full.
Owen Brown
This is what caused the collapse in the US market leading to the great recession.
This chart was floating around since 2005, and it was like a slow moving car wreak.
should i go live on the western Australian coast? looks comfy
Carson Ortiz
I didn't lay blame on anyone, but if you want me to I'll say that I blame the government. I'm not saying that growing the economy with immigrants is a good thing, I'm just saying that's helping to keep use out of recession. We actually need a recession imo. Interesting graph, we'll see what happens I guess
Gavin Wright
2.5mil for a shitbox brick house and piss poor backyard. The fucking back stairs look dangerous.
Nice roof, probably has a nice fireplace. And obviously the location is what you're paying for 20 minutes to sydney and the beach.
Kevin Cox
If you like sandy deserts with blisteringly hot temperatures and total isolation, yes you should move to the west coast of Australia.
this country is fucking hopeless the only one who actually knows whats going on and has the guts to do things is bob katter, but you cunts keep ignoring him and hope that pauline will do things but you all forget SHE'S A WOMAN
name 3 australian robotics companies to fill this need australia's focus on services, agriculture and mining instead of science, technology and manufacturing is gonna bite you all in the bum and bite it hard
this
who let them in? that is who to blame, they're not doing their jobs of protecting australian interests but don't forget to pay your taxes and keep watching footy you fucking spastic retards
Andrew Rivera
the chinks will just wait it out, it's poor australians who will be forced to sell out
Levi Rogers
Unless you have a good $250k+ minimum stashed away outside of a bank, you won't survive a country wide property crash. It won't play out like >lol boomers btfo, ima buy the dip You'll get 10/10 fucked as well.
Nearly everything in this country is tied to the equity in these properties. The majority of employers in the country are small businesses. These businesses start and are often kept running by credit made available by borrowing against equity in these properties. All those cafes owned and run by millenials? mommy and daddy equity. Trades and service companies? Borrowed against the family home. All the superfunds and pensions that invest in new projects? Property groups.
Here's a very rough breakdown and timeline as to how it will play out and how everyone gets 10/10 fucked except the banks who get bailed out. It'll be accelerated by the banks hot new "borrow against UNREALISED capital gains" meme they've been rolling out to keep the bubble inflated. How do you think 20 somethings have 10 investment properties on a 45k annual salary? Literally margin trading with leverage on housing
So >property prices see consecutive yearly retractions for the first time since '87 (now) >Fifo workers coming off recently finished projects like Gorgon and Whetstone now have no jobs to finance their investment meme (just starting now) >interest only period ending (now) >unable to service the loans, they start selling up or just outright defaulting >property prices start to really eat shit >small businesses starts to shut doors unable to service their credit anymore as they've lost all the equity in their homes >unemployment begins to increase >more properties on the market + surplus of apartments coming online = race to the exit >deflation! >rising unemployment, falling home prices and less disposable income means prices start falling across economy as retailers complete for what little money exists >falling prices means less income for businesses.
i too long, cont...
Julian Clark
>pensions and super get fucked >boomers lose the retirements and need to re-enter the workforce putting further pressure downward pressure on wages >more property fails to sell putting further downward pressure on the housing market >deflationary deathspiral >this doesn't stop until there's nothing left and will persist for years and years >public unrest, errosion of standard of living etc
There is NOTHING an economy fears more than deflation. Once a deflationary deathspiral kicks in there's almost nothing that can be done to stop it. When the housing bubble in Australia starts to pop, no one will be left unaffected. Our housing market is leveraged to the tits across every sector and makes the US sub-prime market look like amateur hour.
Do not think for one second that you won't be affected. As usual the richest, most liduid individuals will get wealthier. Especially those with cash and hard assets (gold, US dollars). Everyone else has a bad time.
Dylan Martin
Kiwis don't need foreign investment, they're already the puppet of a puppet.
Grayson Wright
We already have laws that only citizens or permanent residents can buy existing properties. NZ just copied what we already had
Angel Thompson
yep this its going to be fun and we have loads of africans to deal with as a bonus
but I will have a grin on my face watching the average person finally come to terms with what I saw coming over a decade ago
Angel Scott
Yeah cunt's fucked if this happens, I have $80,000 saved up, could probably live comfortably out of my car for a few years with it if shit hits the fan.
Austin Reyes
how? you'll get booked for squatting because there won't be any petrol mate you'll be proper fucked
Ryan Collins
Not enough beaners chasing them off the coast a la California.
Related, why is West Aus so empty? Areas north of Perth seem ripe.
Carson Long
I don't think the cops will be worried about booking people for being parked in one location for too long while society falls apart, they'll mostly be dealing with communists and anarchists trying to overthrow the government.
Anthony Gutierrez
So the Chinese real estate scourge infecting Australia, Canada, US, etc. is being funded by the Chinese government? Figures their ultimate goal is just colonizing our countries and getting the citizens indebted to their regime
>There is NOTHING an economy fears more than deflation
Why is this the case? Shrinking monetary supply means less employment right? Is there more to it?
Joseph Campbell
lol just like how they're busy catching criminals now instead of chasing old grannies for easy tickets?
keep dreaming mate and what will you do if a bunch of africans show up around your no petrol car?
Isaiah Young
>everyone else has a bad time. move to america >workforce you got welfare. any cunt can get on the dole
>this doesn't stop the gooks bail you out by shipping off 100 million locusts to save your economy
Owen Cooper
Deflation fucks anyone holding debt. In the current year that means all governments and (especially in Australia) most private citizens.
If you've got plenty of liquid assets like cash, cryptos and precious metals, deflation can be quite beneficial. But that's a very small percentage of the population.
Well for starters my car doesn't run on petrol, and secondly there are no africans where I live, and thirdly it's not illegal to park your car on the street.
Christian Wright
then you're all set I just wanted to scare you a bit lol
Jackson Flores
You have to go back.
Liam Sullivan
Yisssss..
Alexander Peterson
WTF. invasion
Charles Cook
Don't get me wrong it's no picnic, a lot of people do what my emergency plan is by choice, as a lifestyle.
What do you mean "foreign"? Those Chinks at least have permanent residency, if not citizenship. At this stage, Australian and Chinese are interchangeable words.
Alexander Perez
Housing market here is also collapsing, sales plummeting worse than 2008/2009 and prices are starting to fall
Christopher Wright
>move to america several million people just "move to america".
>you got welfare. any cunt can get on the dole There will be no welfare. Welfare will be boiled down to soup lines and emergency medical care. There will be no unemployment benefits.
You're one of the few people in this thread who is failing to grasp the scale of the fuckery this will become
Bentley Sanchez
Steve Keen dropping redpill nuclear bombs on private debt levels
