possibly the average apartment dropped more than the average house
but the situation was a little unique with many who had put only $1000 down on conrad 2 bed apartments in 2006?
then using the 2 years guaranteed return of $400pw to cover the mortgage
the expectation was that rentals would continue at $400pw when the guarantee ran out
unfortunately the gfc slowed? the student? rental market and rentals dropped to $350pw
those owners who could afford to top up their mortgages for the lost $200 rent per month for 3? years
were rewarded for their patience with rents climbing back above $400pw last year
but many couldn't
and mortgage sales locked in losses of around $100,000? for people who could least afford it
...
conrad have just announced some new apartments in auckland
and if the world + auckland keep steaming along they should pan out well for investors
but if there is another black swan crash within the next 10? years
over-leveraged investors may cop similar losses
but the situation was a little unique with many who had put only $1000 down on conrad 2 bed apartments in 2006?
then using the 2 years guaranteed return of $400pw to cover the mortgage
the expectation was that rentals would continue at $400pw when the guarantee ran out
unfortunately the gfc slowed? the student? rental market and rentals dropped to $350pw
those owners who could afford to top up their mortgages for the lost $200 rent per month for 3? years
were rewarded for their patience with rents climbing back above $400pw last year
but many couldn't
and mortgage sales locked in losses of around $100,000? for people who could least afford it
...
conrad have just announced some new apartments in auckland
and if the world + auckland keep steaming along they should pan out well for investors
but if there is another black swan crash within the next 10? years
over-leveraged investors may cop similar losses
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