I suspect this will end badly for them, and I hope it does.
They’re refusing to sell their house over 60k in equity, thinking the “current downturn” will turn around. No, we’ve just come out of a bubble, this is what house prices should be.
As for your oil stocks, I hope the bottom falls out of those.
Right now the average house price across New Zealand is around 6 times the average income. “Affordable” is when the ratio is below 3. That’s what they SHOULD be.
I suspect this will end badly for them, and I hope it does.
They’re refusing to sell their house over 60k in equity, thinking the “current downturn” will turn around. No, we’ve just come out of a bubble, this is what house prices should be.
As for your oil stocks, I hope the bottom falls out of those.
“this is what house prices should be.”
Should?
Right now the average house price across New Zealand is around 6 times the average income. “Affordable” is when the ratio is below 3. That’s what they SHOULD be.
Yeah, but where does that actually happen? And where does the 3x figure come from, I was under the impression 6x was pretty good.