Mortgage Payments Suspended In Italy Due To Coronavirus (COVID-19)
In a surprising twist today Italy suspended the payments of all mortgages for the foreseeable future due to the Coronavirus outbreak. This was done to help the public as Italy has instated a “lockdown” where the public is only allowed to travel to and from work and for emergencies.
This is obviously going to affect employment throughout the nation as places of employment such as movie theaters, Museums and sporting events. All people will be without pay from various other industries where gatherings happen such as restaurants.
Who will this affect?
Homeowners – Obviously this will help support those who own homes as they currently are talking of suspending mortgage payments for up to 3 months. There is still an additional cost to running a home such as insurance, taxes, and utilities. While it will be a relief there will still be expenses
Renters – At the time of this writing there was no talk about suspending rents. I would be shocked if the government only gave a reprieve to homeowners while renters still had to pay.
Investors – If the government does suspend rental payments people that own multiple rentals or rental buildings will be hit. While yes they will not have to pay the mortgage payments on the property (if they have one) but they will still have to pay all the cost associated with carrying that rental while having no income coming in.
We like to think that this is a problem halfway around the world but considering just two weeks ago (Feb 25th) Italy only had 280 cases and now close to 10,000 just shows how quickly things can change.