Check it out – our mortgage industry is growing up. If we can just avoid the sub-prime disaster going on in the US at the moment 🙂
Also interesting is that Warren Buffet in his latest letter to shareholders mentions that he’s on the hunt for real estate agency businesses at the moment.
Adelaide Bank has launched a mortgage product that lets borrowers buy a [sic] 20 per cent of home without having to make interest payments.
But when I heard about ‘shared-equity mortgage’, no such fears invaded my senses. All I could think was, ‘that’s interesting’, ‘good idea’ and ‘can’t-wait-to-see-if-and-when-it-will-ever-happen’. […]Yesterday […] Rismark and RP Data announced the launch of new property price indices and a residential property derivatives trading market.
Adelaide Bank has created a website just for the mortgage called at efm.info
The indices by RP Data are only available for pay, of course – what do you think this is? A marketplace where participants can see the data?
In his book Irrational Exuberance, Robert Schiller wrote about the potential beneficial uses of a derivatives market in residential property. Imagine you buy a house in Sydney – you could then use derivates over say Melbourne property to provide a kind of insurance against a drastic fall in your property. Naturally it would be possible to trade these derivatives in a more reckless manner, but nobody would do that, would they? Hmm.