In this article, we believe the tradition will round off the month of October by giving an overview of what interesting financial and private economic news has been during the month. We have selected five exciting articles that are all financial or financial related.
Here you can read a little about each of the five selected news items, after which you can click on the article below if you want to read the news.
In addition, at the end of the article, you can read more about what is happening of exciting things in finance and economics, primarily during the Danish month of November. You can also read a brief description of the event in question, and you can click here if you want to read more.
Danes took mortgage loans for USD 200 billion dollar
Finance Denmark could announce in mid-October that we Danes have borrowed a record amount of money in the third quarter of 2019. In this quarter, the Danes raised new mortgage loans for USD 200bn. dollar.
The last record was set in the first quarter of 2003. Compared to the latest figures from the third quarter of 2019, we borrowed USD 26 billion during this period. more than we did in the first quarter of 2003.
“Many homeowners have chosen to reschedule their loans to get a cheaper loan now that interest rates are historically low. It has been possible to obtain 30-year loans with a fixed interest rate of 0.5 per cent. or 1 per cent, ” says Peter Jayaswal, Director of Real Estate Credit and Real Estate Financing.
Wealth has declined since 2015
At the beginning of October, Cepos published an article on wealth in Denmark. They have looked at figures from Statistics Denmark and calculated the average Danish net worth in different age groups.
Based on these figures, Cepos could conclude that there is little opportunity in Denmark if you look at the 10% richest and the 10% poorest. However, this inequality has diminished if you look at developments from 2015 to 2017.
“There is some wealth in Denmark. Looking at the 10 per cent. richest, they have an average wealth of 6.2 million. and to be included in the top 10 per cent, you must have a wealth of at least USD 3.2 million. The 10 per cent. with the lowest assets have an average net debt of approx. USD 280,000, ” says chief economist Mads Lundby Hansen.
The housing tax reform postponed to 2024
Lately, we have heard a lot about the new housing tax form, which should ease housing taxes as early as 2021. At the end of October, however, it emerged that the housing tax reform has now been postponed to 2024 instead of 2021.
The postponement of the housing tax reform will, according to Bolius, have both losers and winners. About 980,000 homeowners will have to postpone the easing of the housing tax, and thus they will have to wait even longer for this saving. On the other hand, they will approx. 510,000 homeowners, who have to pay more, have the chance to sell their home with a tax rebate.
Industry Association Good Lender’ proposals for regulating mortgage loans
It is no secret that there has been quite a bit of grief lately about special mortgage loans and these loans’ APR (annual percentage rate of charge). The government is therefore ready to present a new law on quick loans for February.
Meanwhile, the industry association, Good Lender, has submitted its own proposals for regulating the mortgage loan market. Among other things, the cost of the loan must never exceed the size of the loan.
“There has been a lot of debate on the subject and we can also see the market evolving. Some of the cases that have appeared in the media show that regulation could well be needed, ”says Good Lender spokesman Jens-Ole Kyhl Klitgaard.
You can read more about Good Lender’ proposals for regulation here: Quakers will anticipate government intervention with their own proposals.