“The mortgagee sale was forced after the owners could not meet the interest payments on the $405,000 they borrowed to buy the house at the peak of the market.” Via The Age with a tip of the hat to Mark.
People always freak out. I call this behavior the “spook and dump” which happened with SUVs when gas prices increased.
And why do people buy at the height of the market, anyway? “Buy low, sell high,” right?
The housing crash has begun, in this case in Australia, but it is only a matter of time.
Soon, I will be able to afford a home in Washington, DC, after all the dumb people who bought more house than they could afford by leveraging themselves spook and dump.
I will own myself a nice $1M Capitol Hill town house for $500k one of these days soon. Yay me!
