Good point - which is why it was madness for Westpac to be allowing 110% mortgages a couple of years back. But if we look at market trends, values have only gone up over time. So equity then becomes a function of one's ability to service a loan. Its not so much that the value in property will cause one to loose equity - its the increase in interest rates or lack of tennants prepared to pay the rent which become the problem.
Bookmarks