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Why would people not buy extra properties with these mortgages “just in case”? Especially the 10 year one seems low risk and worst case you have a property afte
by xchaotic 7y ago
Why would people not buy extra properties with these mortgages “just in case”?
Especially the 10 year one seems low risk and worst case you have a property after 10 years?
- amiga_500 7y agoBecause the principal is due each month and the rent gives a negative cost of carry? Plus future falls expected due to demographics?
- neural_thing 7y agoYou still need a down payment and cash flow for monthly payments. It's just that the monthly payments contain no interest portion, just principal. Danish real estate is expensive, not many people can afford to make payments on multiple properties.
- viburnum 7y agoWith good regulation (unlike the US before the bubble popped) low rates are not a problem.
- gridlockd 7y ago[citation needed]
- gridlockd 7y agoWorst case is you lost a lot of money, because low-interest mortgages push up real estate prices and have been doing so for a while. If the bubble pops, you will still be paying 100% of the money for something that's worth maybe only 50%.
- acchow 7y agoNeed cash flow for mortgage payments. Need down payment. Price are inflated by increased demand due to zero interest rates. How much will they drop when they rise?