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Dutch austerity measures may hit house prices

By Patrick   Follow   Thu, 8 Nov 2012, 5:55pm   412 views   5 comments
In Menlo Park CA 94025   Watch (0)   Share   Quote   Permalink   Like   Dislike  

http://www.reuters.com/article/2012/11/07/idUSWNA905920121107

Nov 7 - The Dutch government's proposed austerity measures could have a greater negative impact on house prices than on the performance of existing mortgages, Fitch Ratings says. Slow implementation, the focus on the highest earners and a partially offsetting reduction in tax rates, mean we do not expect the much-anticipated reduction in mortgage tax deductibility to have a significant effect on default rates in a near future. The rate will fall to 38% from 52%, though phased in at just 0.5% a year, and only the highest earners will be affected at first. The initial impact will be small...

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1. Bellingham Bill Follow Befriend 30 threads 1,487 comments Bellingham, WA Premium

   1   7:01pm Thu 8 Nov 2012   Share   Quote   Permalink   Like   Dislike   hoo boy. The Japanese have loaned their government money their savings to build stuff, while the Dutch have loaned each other their savings to buy houses. Japan has 200%++ public sector debt. Dutch are at 110% of mortgage debt to GDP. Idiots! obligatory FRED chart of US debt/GDP: http://research.stlouisfed.org/fred2/graph/?g=cDe

2. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

   2   9:54pm Thu 8 Nov 2012   Share   Quote   Permalink   Like   Dislike   Alright, we're doing better than all of them. We're only at 61.5%. LOL!!!

3. thomaswong.1986 Follow Befriend 15 threads 2,839 comments

   3   10:30pm Thu 8 Nov 2012   Share   Quote   Permalink   Like   Dislike   At least they have bankable assets.. While its oil reserves in the North Sea are of little importance, the Netherlands is presently the second largest natural gas producer in Europe and the ninth in the world, accounting for more than 30% of EU total annual gas production and about 2.7% of the annual world total.

4. Bellingham Bill Follow Befriend 30 threads 1,487 comments Bellingham, WA Premium

   4   11:28pm Thu 8 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   actually debt-to-income isn't so good: http://research.stlouisfed.org/fred2/graph/?g=cDQ gee, didn't anybody see that skyrocket in realtime???

5. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

   5   12:03am Fri 9 Nov 2012   Share   Quote   Permalink   Like   Dislike   Bellingham Bill says actually debt-to-income isn't so good: http://research.stlouisfed.org/fred2/graph/?g=cDQ gee, didn't anybody see that skyrocket in realtime??? Actually, the ratio is not bad. That's about $70k of debt for a $100k household income. I thought it would be much higher. Apparently we're not done deleveraging according to the graph, but we're 1/2 way there.