The Great Australian Problem
According to news.com.au the debt Aussie households is mostly on mortgages.
Which means that if the housing market wobbles, there is a serious problem.
So what do you do?
If the housing market starts to wobble and your house is worth less than your mortgage, you probably just sigh and keep on living there, right? But it’s different if it’s an investment property with an interest-only loan.
In that case, you’re far more likely to realise your investment is a dud, and sell out.
Which will also, thanks to the capital gains tax, get you a little tax saving.
