The 2019 property nightmare

Monday, 16 October 2017

Goodness, even permabull Peter Wargent is worried:

Interest-only (IO) loans in Australia typically, though not always, have a term of five years.

At that point, the loan must either be rolled over, or it flips over to become a principal and interest (P&I) loan.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.