3 - Housing Crisis in Australia
The Red Line
00:00
What Are Interest Only Loans?
Banks are moving from interest only loans to principal plus interest loans. During the height of the mania, it was got up to forty, forty five % of loans were investors or interest only loans. And if e house is a million dollars, only have to pay the interest on that loan. You don't have to pay down the million dollars. So again, once the house prices start falling, why are you gin to keep paying interest on something that's worth less and losing your money?
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