Real Estate

Italy suspends mortgage payments amid outbreak

  • Last Updated:
  • Mar 13th, 2020 11:36 am
[OP]
Deal Addict
Mar 20, 2017
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Italy suspends mortgage payments amid outbreak

If you thought rate cuts and QE are the only bullets, think again. Unconventional stimulus is getting better and better :D

https://www.bbc.com/news/business-51814481

Coronavirus: Italy to suspend mortgage payments amid outbreak
Mortgage payments will be suspended across Italy as part of measures to soften the economic blow of coronavirus on households, a minister has said.

Laura Castelli, Italy's deputy economy minister, told Radio Anch'io: "Yes, that will be the case, for individuals and households."

Italy's banking lobby group ABI said lenders would offer debt holidays to small firms and families.

Suspending debt payments is not unheard of in Italy.

Some small businesses and families were given time off during the financial crisis before having to repay.

Italy has extended its emergency coronavirus measures, which include travel restrictions and a ban on public gatherings, to the entire country.

On Monday, Prime Minister Giuseppe Conte ordered people to stay home and seek permission for essential travel.

Italy's coronavirus death toll jumped from 366 to 463 on Monday. It is the worst-hit country after China.
The Italian economy is still being nursed back to health following the financial crisis a decade ago.

In 2019, total production of goods and services was approximately the same as it was 15 years earlier. What's more, it was still 4% below the level it reached in 2007, just before the financial crisis.

Unemployment is also a persistent problem, especially among young people. The unemployment rate among under-25s is 28.9%, with only Spain and Greece having higher figures in the EU.

In the last two years, Italy has also had to contend with weaker global growth and a slowdown in international trade. In the final quarter of last year, GDP fell by 0.3%.
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52 replies
Deal Addict
Dec 30, 2012
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“Socialism for ME but not for THEE”.

And btw San Francisco is planning to ban evictions due to missed rent during any possible quarantine, so this works both ways.
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Oct 31, 2019
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Isn't that great? Too be honest I'd fully expect our government to follow a similar strategy if shtf. As a young single person with a personal income in the top 10% of society struggling to enter the housing market coming from a modest family background, I'm perfectly happy to continue to subsidise the rest of the society with no expectation of reward. Boy am I glad that I worked so hard to get a good education and a good job.

But seriously.....is the next generation going to just give up? The return on effort and competence really seems to be plummeting.
Deal Guru
Feb 29, 2008
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VanByTheRiver wrote: Isn't that great? Too be honest I'd fully expect our government to follow a similar strategy if shtf. As a young single person with a personal income in the top 10% of society struggling to enter the housing market coming from a modest family background, I'm perfectly happy to continue to subsidise the rest of the society with no expectation of reward. Boy am I glad that I worked so hard to get a good education and a good job.

But seriously.....is the next generation going to just give up? The return on effort and competence really seems to be plummeting.
What a time to be alive.
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Feb 22, 2011
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civiclease wrote: “Socialism for ME but not for THEE”.

And btw San Francisco is planning to ban evictions due to missed rent during any possible quarantine, so this works both ways.
How is that socialism lol, they still have to pay it's just deferred...
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Nov 5, 2018
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civiclease wrote: “Socialism for ME but not for THEE”.

And btw San Francisco is planning to ban evictions due to missed rent during any possible quarantine, so this works both ways.
Complaining...as usual. But I guess that’s all you can do when you are priced out haha. ;)
I do not need approval, I do not need friends. I do what I want.
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Dec 30, 2012
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mazerbeaner wrote: How is that socialism lol, they still have to pay it's just deferred...
Thank you, I’m aware of that. The government telling the banks they can’t collect on mortgage payments, even if temporarily, isn’t socialism? What is it then?
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Feb 22, 2011
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civiclease wrote:
Thank you, I’m aware of that. The government telling the banks they can’t collect on mortgage payments, even if temporarily, isn’t socialism? What is it then?
I don't think you understand what socialism is. Now if the government was making the payments for people that would be a different story. This has literally nothing to do with socialism. You never know though with Trudeau, maybe he will make mortgage payments for people.
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Dec 30, 2012
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mazerbeaner wrote: I don't think you understand what socialism is. Now if the government was making the payments for people that would be a different story. This has literally nothing to do with socialism. You never know though with Trudeau, maybe he will make mortgage payments for people.
The government interfering in a presumably private and legal contract (I presume banks in Italy are not nationalized?), if not outright socialism according to the dictionary definition of nationalization and control of means of production, would certainly fall under the umbrella of socialistic behaviour. We can refer to it simply as government intervention if you prefer.
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Dec 4, 2016
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Since the government of Italy is not compensating banks for the lost revenue or increased risk due to this intervention, it just scares away future investors in Italian mortgage backed securities. Personally, I think it's just like Wynne's rent control -- sounds good politically, but ultimately hurts the same general group of people it's trying to help.

For rent control, at least existing tenants get to live in a place with below market rents until they get kicked out eventually and have to find one in the "new" market place. For home owners in Italy, their home equity just took a huge hit, as everyone is now afraid to hold bonds backed by mortgages in Italy.
Deal Fanatic
Feb 22, 2011
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civiclease wrote: The government interfering in a presumably private and legal contract (I presume banks in Italy are not nationalized?), if not outright socialism according to the dictionary definition of nationalization and control of means of production, would certainly fall under the umbrella of socialistic behaviour. We can refer to it simply as government intervention if you prefer.
Okay then you complaining it's only for one group is incorrect because they intervene in literally every aspect of life. Rent control is the same.
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Dec 30, 2012
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mazerbeaner wrote: Okay then you complaining it's only for one group is incorrect because they intervene in literally every aspect of life. Rent control is the same.
I wasn’t complaining. I was saying (implying) that it’s hypocritical for some, including the guy who started this thread, to oppose government intervention when it harms them but support it (celebrate it, in fact) when it helps.

I’ve stated here about a hundred times that I want the government out of the housing market, period. No rent control, no B20, no CMHC, no shared equity, no personal residence exemption etc. Not sure how much clearer I can be.
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Feb 22, 2011
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civiclease wrote: I wasn’t complaining. I was saying (implying) that it’s hypocritical for some, including the guy who started this thread, to oppose government intervention when it harms them but support it (celebrate it, in fact) when it helps.

I’ve stated here about a hundred times that I want the government out of the housing market, period. No rent control, no B20, no CMHC, no shared equity, no personal residence exemption etc. Not sure how much clearer I can be.
You can definitely want that, but that's not how it currently is. And if they are going to have CMHC and rent control then people have every right to be happy about something helping them too.
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Oct 31, 2019
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I'm not sure why mortgage suspension for is the go-to here. I know plenty of people with jobs that they can't do from home (construction, certain trades, certain service jobs) that are getting anxious about how they can make ends meet if a prolonged shutdown occurred. I'm in favour of temporarily subsidising their wages in such an event.....these really are the most vulnerable members of society right now. This is coming from someone who can work from home.

But suspending MORTGAGE PAYMENTS indiscriminately? Lots of people have been getting crushed by rising housing costs and rents.....why aren't they the priority in this case if they can't work from home, especially if they have mouths to feed? Does this mean that landlords in Italy can keep taking rent while not making mortgage payments? Madness

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