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Poll: Is your debt more than 5 times your income?

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  1. #21
    Join Date
    Jun 2004
    Posts
    9,002

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    Quote Originally Posted by donna View Post
    So Investors not able to refinance dump properties onto the market - kicking out tenants many of whom will still not qualify to be home buyers. This would be nasty at best - less rentals - more competition, higher rents = poorer standard of living etc.
    And someone who buys said houses won't then need to rent so freeing up a rental property for those who don't qualify as home buyers.
    So rents stay the same.

  2. #22
    Join Date
    Aug 2003
    Posts
    7,047

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    That would be the ideal however a likely scenario is cashed up 'big fish' investors may swoop in and grab the bargains paying a bit more for them than the FHBs.

    Isn't this just another step in the erosion of the middle class? The small time investors get squeezed out - the big players just get bigger.

  3. #23
    Join Date
    Jun 2004
    Posts
    9,002

    Default

    Quote Originally Posted by donna View Post
    That would be the ideal however a likely scenario is cashed up 'big fish' investors may swoop in and grab the bargains paying a bit more for them than the FHBs.

    Isn't this just another step in the erosion of the middle class? The small time investors get squeezed out - the big players just get bigger.
    Then there will be more rentals again so rents won't go up - it is the rent increase bit I'm looking at not who owns them.

  4. #24
    Join Date
    Sep 2013
    Location
    Auckland
    Posts
    776

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    I think the income multiple is too simplistic and will inevitably lead to problems.

    As the banks are well aware the issue when assessing risk isn't debt to income it is serviceability! The debt to income talk is purely to try and stop people from buying multiple houses. As others have said there are alternatives and it just will not work. All it will do is expose many, many individuals to even greater risk through non-bank lenders and higher rates/costs of business.
    Last edited by donthatetheplayer; 17-06-2016 at 09:57 AM.
    “Our favorite holding period is forever.”


 

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