A Sydney couple eager to get rich through the housing market have snapped up seven properties in just two years – sending themselves $1.2 million into debt.
Roy Palleson and Rowena Ebona’s staggering debt helps shine a light on how Australia has the second highest household debt in the world, with a vast majority of people already struggling to pay their mortgage payments despite record low interest rates.
The surprisingly cheerful couple spoke to ABC’s Four Corners on Monday night about their goal of buying 20 properties.
Roy Palleson and Rowena Ebona, a Sydney couple (pictured) who are eager to invest in the housing market, have purchased seven properties in just two years – amassing $1.2 million in debt
The surprisingly cheerful couple spoke to ABC’s Four Corners on Monday night about their goal of buying 20 properties
With five established properties under their belt, Ms Ebona estimated the couple’s debt at ‘currently $1.2 million.’
The number will quickly increase though when the pair begin building on two plots of land also they also purchased, Ms Ebona said.
‘For the two land and build developments, they haven’t registered yet, so when that comes, then that will increase.’
The couple’s climbing debt is 10 times more than they earn – with Ms Ebona bringing in $75,000 a year and Mr Palleson earning an annual salary of $60,000.
If forced to sell all seven of their properties, the couple would earn a ‘conservative’ $1.5 million off the investments – just enough to cover the mortgage debt, Ms Ebona said.
Ms Ebona and Ms Palleson, who don’t own their Parramatta apartment they live in, didn’t appear to be perturbed by their mounting payments and said their goal is to own 20 properties ‘initially.’
When asked what their eventual goal is, Ms Ebona shrieked ‘piña colada.’
With five established properties under their belt, Ms Ebona estimated the couple’s debt at ‘currently $1.2million’
ANZ oversees 960,000 mortgages across Australia (pictured is ANZ CEO Shayne Elliot)
As of right now, one in four households do not earn enough to pay for their living expenses, as well as their mortgage repayments.
If the current 1.5 per cent interest rate on a loan were to increase by just 2 per cent, half of all households would struggle to make ends meet, finance experts told ABC.
The average interest rate since 1991 is 4.8 per cent – proving that rates could once again increase.
‘We’ll I’ve been studying the market here for a good number of years and I’ve never seen this perfect storm of issues coming together,’ digital financial analyst Martin North told the program.
‘We’ve got very high household debt, we’ve got very high house prices, we’ve got households in some sort of difficulty already now, and so it doesn’t take much to see the tipping point such within that we get this downward spiral and boy if it goes, it could be as bad as Ireland or the US,’ Mr North warned.
‘You only need a small consequential change, a small increase in the cost of fuel and stuff, to be able to actually really create that pain point.
‘I cannot think of a single economy that’s had a downturn with that much debt that it’s not been a deep downturn.’
As of right now, one in four households do not earn enough to pay for their living expenses, as well as their mortgage repayments (stock image)