Russian Property Bubble Heads for Collapse as Leverage Rises, Affordability Falls & Rates Soar - Joe Blogs

[TexasTowelie]

Growth in RUSSIA's Economy has been partially fueled by a rising Property Market as low cost PREFERENTIAL Mortgages have enabled Russians to buy New Build Property at a low cost. The rapid increase in the volume of mortgages over the past few years has resulted in a rapid increase in prices and there is now a 42% differential between New Build Prices and Secondary Housing Prices. The recent rise in Interest Rates has resulted in mortgage rates DOUBLING and the PROPERTY BUBBLE is now at risk of BURSTING. In this video I look at what has been happening in the market and discuss the potential risks for Russia.

Chapters:
0:00 Intro
3:08 PREFERENTIAL MORTGAGES
5:24 LTV RATIO
8:40 DSTI RATIO
10:40 BANK OF RUSSIA
11:58 PROPERTY PRICES
15:02 INTEREST RATES
16:32 SUMMARY & CONCLUSION

[Crowman2009]

1. On a sidenote, I hope BlackRock loses a shit-ton of money in the future.

This investment real estate charade needs to collapse.

[ampm]

2. Amazing

This made it easy to understand how housing bubbles work.