Quote:
Originally Posted by Unregistered
q1: technically yes
q2: Not sure
q3: No, since current market value of property > outstanding loan, hence still positive equity.
Are you waiting for market downturn when over-leveraged owners start off-loading their properties? Start conserve capital now, there will be a lot of bargains in next 3 year
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Thanks for the answers. This tells me that many people will be in trouble when property values drop <20%, that will be the start of the steep fall.
Yes, I am waiting for the crash, and trying to save as much as I can. Had been asking my friends and family on the 'criteria for margin call' for property, but most don't even know what is a margin call! This also tells me that most people do not know the risks of buying property.
I'm not formally trained in finance or economics. When I first bought my home (i.e. my very first property), I was surprised about this thing called leverage, where with merely 20% downpayment I could own a property. So good ah, what is the catch? Now I know that leverage cuts both ways.