Post to Facebook on 10/4/2020 9:54 AM
Commenting on “Up to one third of mortgage holders don't have a buffer”
https://www.theage.com.au/politics/federal/up-to-a-third-of-mortgage-holders-don-t-have-a-buffer-for-virus-downturn-20200409-p54io2.html
Commenting on “Up to one third of mortgage holders don't have a buffer”
https://www.theage.com.au/politics/federal/up-to-a-third-of-mortgage-holders-don-t-have-a-buffer-for-virus-downturn-20200409-p54io2.html
I suggested repeatedly that you must have enough buffer money reserved for at least two months of mortgage repayment for rainy days. The rainy days are here to stay for quite some time.
A member commented that six months is recommended by advisers. While this may seem like a better safeguard, this is unlikely possible for those work with tight budget. The unfortunate thing is that many will use the “spare” cash to pay for the deposit, just to reduce the loan amount.
I have stressed many times that young people who rely on Mum-and-Dad bank are likely to suffer in tough time, just like this now. If they do not have the ability to save for the deposit, it is doubtful they can afford the cope with repayment and other related household expenses.
What if the mortgage holders continue to fall behind their repayment? The banks are not charity organisations, and they will have to default, and more properties will end up in the market.
Someone’s loss is others opportunity. Unfortunately, this is just a sad story penned by the coronavirus pandemic.
Stay Home, Stay Safe.
Thank you for reading.
A member commented that six months is recommended by advisers. While this may seem like a better safeguard, this is unlikely possible for those work with tight budget. The unfortunate thing is that many will use the “spare” cash to pay for the deposit, just to reduce the loan amount.
I have stressed many times that young people who rely on Mum-and-Dad bank are likely to suffer in tough time, just like this now. If they do not have the ability to save for the deposit, it is doubtful they can afford the cope with repayment and other related household expenses.
What if the mortgage holders continue to fall behind their repayment? The banks are not charity organisations, and they will have to default, and more properties will end up in the market.
Someone’s loss is others opportunity. Unfortunately, this is just a sad story penned by the coronavirus pandemic.
Stay Home, Stay Safe.
Thank you for reading.
