Hi Guys
Interesting point made by Tony Alexander in his last week's newsletter.
Regards
Interesting point made by Tony Alexander in his last week's newsletter.
For your guide, last week we noted that for the first time since data collection started in 1945 Americans now
owe more on their houses than they own. The debt to equity ratio is therefore over 50%. We have nothing
like that in New Zealand. As at September last year mortgage debt stood at about $151bn while the housing
stock was valued at about $622b. The debt to equity ratio for us is around 24%. In the United States dwelling
consent numbers have fallen 54% from two years ago. Our decline from two years ago is about 15%.
owe more on their houses than they own. The debt to equity ratio is therefore over 50%. We have nothing
like that in New Zealand. As at September last year mortgage debt stood at about $151bn while the housing
stock was valued at about $622b. The debt to equity ratio for us is around 24%. In the United States dwelling
consent numbers have fallen 54% from two years ago. Our decline from two years ago is about 15%.
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