Financial Standard Comments - Hidden threat may lurk on bank balance sheets Real estate investors with interest only loans are the biggest threat to Australia's Big Four bank balance sheets, a senior equities analyst has said. https://www.financialstandard.com.au/feed/latest?story=12095569 Fri, 08 Jul 2011 15:50:09 +1000 Fri, 08 Jul 2011 15:50:09 +1000 en-AU Copyright 2026 Financial Standard 5 Comment by Bobby () Like the comment about people not earning enough to make negative gearing worthwhile. Try telling those people that. They think property just keeps going up all the time, and it has because the blind follow the blind. When you have blind faith and think there is no volatility in prices just because you don't have quotes flashing across the screen every minute, then you're not going to bother with analysis. Just gear up and keep gearing as you grow equity.
It's a mugs game and now some harsh lessons will be learned. Hope it kills off the property spruikers. Who would gear into an asset on a 3% yield where past growth only came from expansive bank lending, which is slowing dramatically?

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]]> Bobby () Fri, 08 Jul 2011 15:50:09 +1000