I discuss the Shadow Treasurer’s comments relating to sitting out negative equity with Ross Greenwood on 2GB
Mr Bowen said they would “only lose money if you sell”. “I mean sometimes lots of people go into negative equity when the housing market does fall,” Mr Bowen told ABC’s Triple J this week. “I remember when I first was in the housing market I went into negative equity for a while. … The market does come back.
We say, that is not good advice!
Could be a good idea to legislate to have the banks take on 50% of the negative equity when the property is sold. Might make them take a closer look at the chances of the investment going bad if they had to share in the pain.
Yes they need to shoulder far more risk and be able to fail.
The broker system is asking for the irresponsibility we have seen, where, 60% of the housing loans have been allowed to be put through one of the 60K strong broker sector.
These have been the biggest and most expensive loans, according to the recent Royal commission.