Inside Your Pocket: Homeowners must prepare for higher interest rates Many financial crises have their roots in property
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We all need to live somewhere and as human beings we tend to place a huge emphasis not just on having a house but having a home. It is always an emotive topic, and history shows that few things get people as animated as a bull market in house prices.
Unfortunately, history also shows that few things are as likely to cause a financial crisis as an overheated housing market (the other major culprit is excessive borrowing in a foreign currency). The 2008 global financial crisis (GFC) famously had its roots in low-quality (‘subprime’) US mortgages.
Unfortunately, history also shows that few things are as likely to cause a financial crisis as an overheated housing market (the other major culprit is excessive borrowing in a foreign currency). The 2008 global financial crisis (GFC) famously had its roots in low-quality (‘subprime’) US mortgages.
