Big Sinner Risk Ninja I would agree for investment properties, though for Norway where substantial numbers have second homes usually small summer cottages in the countryside it would need some flexibility but very few would be within Oslo city limits.
Thanks for this video Martin. Given our politicians are not proactive, it will take a financial crisis for change to be considered. Masterly inactivity will prevail.
Just a warning, I am not going to allow racist comments on this blog. Its not helpful, and a distraction from the critical issues we all face. They will be deleted, so play nice.
No probs Yusuf. Since Martin took down the offending post, or the writer him/herself?, I have deleted my reply so that this channel is not in anyway distracted by anything other that the financial issues we all face, regardless of one's beliefs. Have a good one :- )
One key point. Central Banks set short term interest rates. It is the market that sets long term rates. Central banks can seek to interfere in the normal market pricing mechanism, temporarily, by buying up treasuries or corporate bonds but, ultimately, markets always win and set the price they need to clear. An orderly rise in global interest rates is now already guaranteed as that is official FED policy and other countries will have no choice other than to follow. Moreover, there is a significant risk of a disorderly, sudden rise in rates should either the Euro (Italy) or China debt issues spook the markets. All new mortgage applications in Canada now have to be stress tested to 5% plus (principal repayment and intetest) because the writing is on the wall.
So Norway is doing the smart thing. Maybe there politicians don't have vested interests in the property market. Not like a lot of our politicians who seem to want home prices to just keep going up because it's suits there person agendas.
Martin, It seems that Norway is tightening mortgage rules amid fears of a house price bubble. What is Australian government doing about its mortgage rules.? Is APRA well funded and does it have the resources to implement efficient rules and regulations.?
7555tx 7555tx Literally every video hes posted in the past two weeks will explain. Apra does have the resources to implement rules. But do they really want too? The banks want control of everyone and everything. By making everyone debt slaves, it traps them when they default on their loans when tightening lending standards, higher interest rates, falling house prices that make loans worth more than the house itself, penatly wage cuts, with no wage growths for the last 20 years. Its a very dangerous game
Very high leverage there too martin interesting to see how it could be managed in a downturn. I happened to notice in your chart 3rd from left brazil with low debt to gdp not sure if you have much data on the country but is there situation a little better then some western word economy's . Thanks again
Brazil is a special story as intetest rates are high and it barely has a functioning mortgage market. Norway is another special case as personal tax rates are high but loan interest is fully tax deductable.
Can Norway come back from this level of debt? They enjoy a Current Account Surplus and have a trillion national wealth fund, how does this impact the risk?
First investment property- 25% deposit required. Second -50%, third 75%. That would do the trick.
Big Sinner Risk Ninja I would agree for investment properties, though for Norway where substantial numbers have second homes usually small summer cottages in the countryside it would need some flexibility but very few would be within Oslo city limits.
Yep, and there debt is 50% property related...
What a perfect time for our lenders to jack up interest rates by up to .4%
Thanks for this video Martin. Given our politicians are not proactive, it will take a financial crisis for change to be considered. Masterly inactivity will prevail.
Muslims are a perfect distraction for this financial bedlam in Europe.
Just a warning, I am not going to allow racist comments on this blog. Its not helpful, and a distraction from the critical issues we all face. They will be deleted, so play nice.
@ Walk The World... Agreed. Well said. Channel narrative should be respected. Thanks OD
No probs Yusuf. Since Martin took down the offending post, or the writer him/herself?, I have deleted my reply so that this channel is not in anyway distracted by anything other that the financial issues we all face, regardless of one's beliefs. Have a good one :- )
Karl studioredcloud.com thanks I am also doing the same
One key point. Central Banks set short term interest rates. It is the market that sets long term rates. Central banks can seek to interfere in the normal market pricing mechanism, temporarily, by buying up treasuries or corporate bonds but, ultimately, markets always win and set the price they need to clear. An orderly rise in global interest rates is now already guaranteed as that is official FED policy and other countries will have no choice other than to follow. Moreover, there is a significant risk of a disorderly, sudden rise in rates should either the Euro (Italy) or China debt issues spook the markets. All new mortgage applications in Canada now have to be stress tested to 5% plus (principal repayment and intetest) because the writing is on the wall.
Thanks, good point, rates are going higher.
So Norway is doing the smart thing. Maybe there politicians don't have vested interests in the property market. Not like a lot of our politicians who seem to want home prices to just keep going up because it's suits there person agendas.
No need to worry; markets eventually correct market inefficiencies very convincingly as is happening right now on the south east coast!
Martin, It seems that Norway is tightening mortgage rules amid fears of a house price bubble. What is Australian government doing about its mortgage rules.? Is APRA well funded and does it have the resources to implement efficient rules and regulations.?
7555tx 7555tx Literally every video hes posted in the past two weeks will explain. Apra does have the resources to implement rules. But do they really want too? The banks want control of everyone and everything. By making everyone debt slaves, it traps them when they default on their loans when tightening lending standards, higher interest rates, falling house prices that make loans worth more than the house itself, penatly wage cuts, with no wage growths for the last 20 years. Its a very dangerous game
Thanks!
The do not have the will to do whats needed I have tried to paint this picture in recent weeks....
Very high leverage there too martin interesting to see how it could be managed in a downturn. I happened to notice in your chart 3rd from left brazil with low debt to gdp not sure if you have much data on the country but is there situation a little better then some western word economy's . Thanks again
Shows the widespread issues with high debt...
Brazil is a special story as intetest rates are high and it barely has a functioning mortgage market. Norway is another special case as personal tax rates are high but loan interest is fully tax deductable.
Can Norway come back from this level of debt? They enjoy a Current Account Surplus and have a trillion national wealth fund, how does this impact the risk?
Norway is interesting, with a massive fund, as you say, quite high taxes and a social agenda. But the high debt is still a risk if rates rise...