Interesting times as we move towards a period of rising interest rates and reducing credit availability all the whilst central bank interest rates remain at all time lows with their hands tied in this regard. When both begin moving up......
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Interesting times indeed. I think HGH REL holders wil be in an OK position They wil be capital rich and can afford any increase in interest rates and they will still have access to a REL due to HGH's low equity requirement.
The people I am very concerned about are those that bought property with a bank mortgage when the market was at a high. Taking a flattening / reducing property market will push people closer to negative equity. Add in increased costs of servicing that debt - well things are potentially going to get very ugly.
The Aussie house market is down 10% which is worrying
At the moment it is only a consultation paper seeking out public views on proposal to increase min level of regulatory capital.
Cut off end of March, so the uncertainty will drag on for months.
I said I would not buy any more HGH.
However, I changed my mind and brought a few more for myself as a Christmas present today.
Only present I know that will keep paying me fully imputed divies,and if a couple of brokers' forecasts are right, they will be increasing divies.!
Can you explain why there is "no affect" [sic], i.e. nothing zip nada effect, on HGH REL lending regardless of the market valuations on the property that the punters converting to REL are exposed to? I think you're pushing the boat out a bit far here, but still keen to understand why you think that the market valuations of ones residential property have no effect on a conversion to a REL.