This got me thinking about the situation here. What happens if you default on your mortgage in New Zealand. Is it just as easy to walk away from the debt?
It was also very interesting hearing the arguments justifying the morality about doing so. Both from him and a UK colleague, who said the similar thing was possible there. In a nutshell the prevailing sentiment is that its OK to let the banks take the hit on the bad debt, as they are responsible for the property becoming undervalued in the first place.
Don't get me wrong, I have no intention of doing the same (in fact, I'm desperately trying to find a place to buy, which will increase our debt :-)). But I find the whole concept very interesting, and wondered whether the same scenarios could easily play out here.