Morning all,
I was walking out of the dairy, milk in hand this morning when the following headline caught my attention:
"Banks eye 50-year Home Loans"
The link to the full article is: http://www.nzherald.co.nz/section/st...ectID=10394801
Long story short: Banks are looking at offering 50-year loans to allow so that more people qualify for finance (due to lower monthly servicing costs).
It strikes me that this could well give the housing market a "second wind" in the short-term, as housing once again becomes affordable for first-time buyers.
Another thought relates to the social impact of these loans, with the prospect of intergenerational debt or, at the least, the prospect of debt extending well into one's "retirement" years. Are kiwi's really that mad about home ownership that they would gladly accept these outcomes? (I know, most would probably retire the debt within 50 years, but there would be those who don't.)
Sobering stuff, as I reach for my second coffee of the day.
Paul.
What do others think about these loans?
I was walking out of the dairy, milk in hand this morning when the following headline caught my attention:
"Banks eye 50-year Home Loans"
The link to the full article is: http://www.nzherald.co.nz/section/st...ectID=10394801
Long story short: Banks are looking at offering 50-year loans to allow so that more people qualify for finance (due to lower monthly servicing costs).
It strikes me that this could well give the housing market a "second wind" in the short-term, as housing once again becomes affordable for first-time buyers.
Another thought relates to the social impact of these loans, with the prospect of intergenerational debt or, at the least, the prospect of debt extending well into one's "retirement" years. Are kiwi's really that mad about home ownership that they would gladly accept these outcomes? (I know, most would probably retire the debt within 50 years, but there would be those who don't.)
Sobering stuff, as I reach for my second coffee of the day.
Paul.
What do others think about these loans?
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