60 minutes and the australian property market crash

[Tomo]

Was watching a 60 minutes show last night (from Feb 21) with Jonathan Tepper predicting a crash in the Australian market. One statistic they mentioned was that 50% of new mortgages in Auz are interest only.

Does anyone know what the stats for NZ are or where this info may be accessed?

[eri]

was under the impression

that interest only

was very, very difficult to get now

[Davo36]

Was watching a 60 minutes show last night (from Feb 21) with Jonathan Tepper predicting a crash in the Australian market. One statistic they mentioned was that 50% of new mortgages in Auz are interest only.

Does anyone know what the stats for NZ are or where this info may be accessed?

Got a link to this story?

[Damap]

In NZ you mean Eri? BNZ still doing it.

[eri]

would it be half their lending?

half anyone's lending?

[RHarris]

Yes would be interesting to know the interest only % here.

The big issue in that 60 mins story was the investing heavily in one industry towns ie: mining. I think most banks here have risks models that spread their risk across the country so hopefully some of that stuff doesn't happen here. Although most our banks are Australian banks so who knows how risky they play it. The LVR rules aren't in place in Australia either I believe which may have halted some of those issues. Values dropped massively in some mining towns.

[JABlog]

Got a link to this story?

Found the link here

http://www.bloomberg.com/news/articles/2016-02-22/one-sign-australia-s-housing-market-is-due-for-a-2008-moment

Found a related story here Dave

http://www.news.com.au/finance/business/banking/banks-are-loaning-too-much-to-people-who-cant-pay-it-back/news-story/57af9a6edf85528f5fa38beddd7bb2e3

[Tomo]

heres the 60 minutes link

[Tomo]

the way I see it Auckland property has become massively unaffordable based on incomes.( Even Tauranga now) Todays REINZ data shows no sign of this abating. With interest rates dropping this improves affordability but eventually these will bottom out. As this happens will the banks start relaxing their lending criteria and readily lend more interest only? or has this already happened? would be interesting to know as they are the same as the auz banks after all.

[Bluekiwi]

Mining is the classic example of a one trick town where you would never want to buy rental properties.

I didn't know their was anything else besides "Interest Only" ???

R Harris is not the kind of handle you want to be using in regard to an Ausie threat is it RHarris

[Bluekiwi]

Ha... I just saw the 1m intro, this is a beat up if ever I saw one.

I stopped watching as soon as I heard that one small mining town was an example of why the whole continent of Australian housing industry would collapse.

That smarmy guy wouldn't know a real story if it fell on him

[Cpt707]

....the low-life' aussie banksters at their best again with Reckless Lending..... and do they care..????

[Kbkiwi]

Mining is the classic example of a one trick town where you would never want to buy rental properties.

I didn't know their was anything else besides "Interest Only" ???

R Harris is not the kind of handle you want to be using in regard to an Ausie threat is it RHarris

I havent looked into it at all, but wouldn't buying investment properties in mining towns after/during a mining downturn be a potentially lucrative strategy? Mining booms come and go frequently don't they? - buying between booms and selling during booms might be quite profitable.

[orion]

I havent looked into it at all, but wouldn't buying investment properties in mining towns after/during a mining downturn be a potentially lucrative strategy? Mining booms come and go frequently don't they? - buying between booms and selling during booms might be quite profitable.

A lot of investors still use I/O, moreso in Auckland where you can't get to cashflow neutral without putting in a huge deposit when buying each property.
I think Auckland is extremely susceptible to the same thing happening at some stage very soon.
People got caught up in the hype of it all and will most likely suffer a similar fate unless they are lowly geared or have mostly P & I loans and are paying down debt.

[JABlog]

Looks that way. Nearly half are investors.

http://m.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11621360