Clutha Leader - - OUT & ABOUT -

Di­vorce in an era of high house prices is hard. One home, worth a whop­ping $1mil­lion with a mort­gage of $400,000 has to be sold, and the sep­a­rat­ing cou­ple have to start up new homes alone. They have a lit­tle shy of $300,000 each to go shop­ping with. They’ll be lucky not to end up dou­bling the debt they in­di­vid­u­ally carry, if they can ever buy a home again. What a way to start sin­gle life again. watch with hor­ror when their young ones take on mort­gages of $600,000-$800,000, know­ing what the re­sult will be. Paid back over 30 years, there’s $650,000-$850,000 in in­ter­est to pay, as­sum­ing an op­ti­mistic 6.5 per cent in­ter­est rate. What par­ent wants their chil­dren to be life­long slaves to banks? can be­come a night­mare in a hot prop­erty mar­ket where un­con­di­tional auc­tions are the norm. If you ac­ci­den­tally end up shut out of the mar­ket, things can very quickly turn against you.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.