Articles by Matthew Gilligan
For those of you who are worried because you are carrying debt on property, I share my perspective on the impending doom that Covid-19 has wrought upon us.Just remember, people, that banks lend on closer to 6:1 mixed median multiples (median house prices: median household incomes) in New Zealand. They appear to be up to 12:1 but banks don’t lend unless you satisfy at closer to 6:1. You need to be able to debt service at around double the interest rate you're borrowing at and amortize over 25 years, or you can’t borrow.
Watch for doomsayers. They are the guys that never borrowed a dollar and believe debt and property is the root of all evil. They will be slapping themselves on the back as people going to the wall lose their shirts. They predicted this right? But then every 10 years they are right for about a year. Meanwhile everyone in property knows it has its ups and downs, and they sell at the top and buy at the bottom. But the doomsayers think this is evil, and assume we are not smart enough to work it out. Only they predicted this downturn, only they know what to do. Meanwhile a whole bunch of guys and gals get richer riding the ups and downs as contrarian investors.
In the meantime, stay safe, and follow GRA on Facebook for regular updates.
Hi John, I just wanted to say a huge thank you for sitting down with me the other day to do the review. I learnt so much from this time with you and its really giving me some good things to consider with moving forward - Sam, October 2018
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