House prices to keep rising for years

[CAFA1234]

hello,
still looks pretty easy:
https://www.eloan.com/s/show/refina...&sid=WxLkB2zQcaHSBqoCPkvBPBs_als&user=&mcode=
thankyou
robots

Robots - please, please don't get suckered by headline 'come on' smiles -particularly in the USA. They are always finding a sucker - one born every minute, so they say.

Go into their site and punch some numbers and see what happens to those fantastic headline rates they were going to offer you.

This result a few minutes ago for a $520k loan - not big for California, and a perfect credit score (most people do not have a credit score above 700). Sorry they refused $520k, but offered $495k on a $540k price - hm, now where are those 105% loans?

I also asked for undocumented - again not on offer.
-------------------------------------------
Today's Best Purchase Rates

Lowest Cost – Guaranteed!

30 day lock period with impounds Change Lock Period
Rates for Excellent Credit (740 credit score)
Your customized quote is for a loan amount of $495,000 on a property with an estimated value of $540,000.
Updated Wednesday, April 23, 2008 at 4:19 PM PDT Modify Search

There are no stated income loans available for the loan amount you entered of $520,000.00. However, we do have income documentation loans available for a loan amount of $495,000.00. Below are all the loan types we have for this loan amount.

------------------------------------
Now the 1 year interest rates are about 10.5/12.8% - after 1 year you go onto their adjustable rate. If thats not a good deal click on the 'Closing Costs' View link and get ready for a shock. The closing costs for this mortgage e.g. what you have to find to move in are.....

Estimated Non-recurring Closing Costs: $22,118 - if you want the cheap rate of 10.5%.

You can reduce this closing cost down to about $3k if you select the 12.8% rate.

Don't forget that this 13% mortgage rate is in a country where bank rate is well under 5%.

Sorry to disappoint, but serious research is a must before we espouse the virtues of the USA.
-----------------------------------------------------

1 Year ARM (30 year loan, fixed for 1 year)
SORT
Interest Rate SORT
Points or Credit* SORT
Monthly
Payment SORT

APR

Margin Prepay Penalty Closing Costs Loan Details Compare These Loans

Apply
10.500% 3.882% $4,528 6.970% 2.250% No View View

Apply
11.625% 1.980% $4,949 6.886% 2.250% No View View

Apply
12.250% 0.971% $5,187 6.844% 2.250% No View View

Apply
12.875% No Points $59 Credit $5,427 6.805% 2.250% No View View

 

[CAFA1234]

From today's FT in London. This is not lack of buyers it is lack of available funds for those without deposits / documentation. I assure you that with a 25% deposit there is no problem getting a mortgage in the UK, nor the USA.
__________________________________________________________
FT - Tuesday April 23 2008 22:24
Mortgage approvals by UK banks slumped to the lowest level in a decade last month, the British Bankers’ Association reported on Wednesday, illustrating the extent to which tighter lending practices are curbing activity in the housing market.

The BBA said its members approved 35,417 mortgages for house purchase in March, the lowest since the series began in 1997. The level of approvals had dropped 18 per cent since February and was 46 per cent lower than a year earlier.

 

[numbercruncher]

Melbourne, seems to be the only area that isnt getting whacked yet ? But with properties coming to market at this phenomenal rate I wonder if we will begin to see demand destruction ?

The number of residential auctions scheduled this weekend will be the highest number ever held in an April weekend.

Although the Anzac Day long weekend may be a contributing factor, the high number of auctions confirms the strong level of activity in certain metropolitan areas.

There are 1,150 residential auctions scheduled this weekend, which is almost twice the number usually held this time of the year. What makes this number more extraordinary is the very different economic conditions and the higher interest rates compared to the same period last year.

http://www.reiv.com.au/news/details.asp?NewsID=646

 

[kyme]

ANZ putting up Home loan rates from Monday, other Banks expected to follow.
Pain isn't over for those overcommitted yet by a long way. Those with savings should be happy though on getting a better return.
I reckon just after Christmas 2008 might be some bargain buying in real estate market, as some struggling home owners bite the bullett and cut their losses.

 

[robots]

hello,

look at this one bro:

http://www.abcmortgages.com.au/No_Deposit_Home_Loans.aspx

awesome stuff, credit crunch no where to be seen,

rents up, house prices up this is fantastic, what a pyramid scheme

thankyou

robots

 

[numbercruncher]

house prices up this is fantastic, what a pyramid scheme

You recognise it for what it is all of a sudden ?

Are you implying house prices are up this year ? or is that a loose comment that spans a few years ? If they are up this year I cant find any solid evidence ....

 

[robots]

hello,

how long has this pyramid scheme been going on for? 10yrs, 50yrs, 100yrs?

house prices must of risen if inflation is 4.2%, as you told me it moves as per inflation

thankyou

robots

 

[wayneL]

hello,

how long has this pyramid scheme been going on for? 10yrs, 50yrs, 100yrs?

house prices must of risen if inflation is 4.2%, as you told me it moves as per inflation

thankyou

robots

It always has been a pyramid scheme of sorts, 2nd home buyers relying on 1st home buyers to buy their gaff and so on. Under normal circumstances, in other words, when all psychological and value vectors are normal, there is nothing wrong with that.

When these get out of whack, it becomes toxic. The reason for this has been discussed already and either people accept that or they don't: But I think it's pretty apparent now, that on a worldwide scale, this toxicity is beginning to tell.

My newly married next door neighbors are classic. They bought last year because they believed the VI line to buy now or never. They could have bought identical houses (it's a new development still being constructed) for at least £20,000 less this year.

They are in negative equity and struggling with payments.... and could have rented the same place for about 60% per month of what it's costing them.

Sometimes rent is not dead money.

 

[robots]

Sometimes rent is not dead money.

hello,

spot on wayneL, over in euorpe people rent their entire life

its part of "living" as they are never able to buy a place of their own

thankyou

robots

 

[robots]

hello,

what about this one:

http://www.news.com.au/heraldsun/story/0,21985,23591683-2862,00.html

could be 75,000 lining up based on all the stories about people getting kicked out of the home due to mortgage stress

at roughly 415k a pop for bedsit, grollo will be lining up for another benz

thankyou

robots

 

[wayneL]

hello,

spot on wayneL, over in euorpe people rent their entire life

its part of "living" as they are never able to buy a place of their own

thankyou

robots

As discussed before, that's not quite true. Europeans just have a different attitude to property. There is also the factor of rent controls and superior security of tenure; many Europeans see no need to buy.

I have friends in Munich who are quite wealthy, can easily afford to buy, but rent and have no desire to buy at all.

In Europe, so long as you pay your rent, you have the same rights as an owner, you cannot be evicted.

By contrast, the UK has a similar psychology to property and property/tenancy laws to Oz, consequently home ownership is at similar levels @ ~70%.

Apples and Oranges

 

[numbercruncher]

hello,

what about this one:

http://www.news.com.au/heraldsun/story/0,21985,23591683-2862,00.html

could be 75,000 lining up based on all the stories about people getting kicked out of the home due to mortgage stress

at roughly 415k a pop for bedsit, grollo will be lining up for another benz

thankyou

robots

Thats just flamin ridiculous, does the Vic Gov have rocks in their heads ? Why dont they ship them out to Vic townships where they could house 4x as many for that money ?

 

[numbercruncher]

As discussed before, that's not quite true. Europeans just have a different attitude to property.

Precisely ....


Attitudes are quickly changing here too, Gen Y as shown in ownership figures couldnt give a rats about home ownership on average!

And " Investors " need renters , its a cosy little marriage of convienience and at this stage of the cycle no matter how the bulls like to dress it up renting is far far cheaper!

 

[robots]

hello,

yeah lets ship them all out, clear them out

you finally coming around to my style of thinking NC, the light bulb has switched on for both of us tonite

thankyou

robots

 

[nioka]

Listening to the radio as I was driving I heard a story of a western NSW town where the council auctioned quite a few houses and the sale prices were from $2000 to $7000. Can't remember the town. They interviewed the buyer of the $2000 home and he sounded happy and was moving in.

 

[Temjin]

Here is something to ponder..

So, as we asked before in Reserve Bank of Australia entering the landlord business, what might be the “possible repercussions if the RBA had not [got into the landord business]?” When money becomes scarce and banks (as well as non-banks) become more scared, lending seizes up and credit standards become tighter (see Rising price of money through the demise of ’shadow’ banking system). For economies that are drugged up by credit (e.g. Australia, UK and the US), this can cause the economic activity to seize up. The fact that the RBA is temporarily swapping risky assets (mortgage bonds) for thin air money at a bargain price is a very telling sign. And it is not only the RBA that is doing this- it looks that other central bankers are coordinating their efforts in pumping liquidity into the financial system. At least this is the official reason. Since the RBA did not reveal who they get their mortgage bonds from, other conspiracy theorists believe that the RBA are bailing out some financial institutions (which include banks and the non-bank lenders).

For bankers, there is such a thing as free lunch.

More at http://cij.inspiriting.com/?p=427

Things are really going from bad to worse. It's quite a move for the RBA to accept these "mortgage bonds". Are they hinting us that something really bad is going on behind the scene, but do not want to spread panic to the public.

The property market is definitely a ponzi scheme. The only way for house prices to continue to go up is to have willing buyers to go into further debt. It's not like wage income are growing fast enough anyway. And when banks are still absorbing a large amount of cost to maintain their existing mortgage loan, it's no wonder they will continue to rise mortgage rates regardless of the official rate.

And when everything falls, the people who got in and capitalised the scheme will come out winning at the expense of those who got in late.

 

[professor_frink]

Here is something to ponder..



More at http://cij.inspiriting.com/?p=427

Things are really going from bad to worse. It's quite a move for the RBA to accept these "mortgage bonds". Are they hinting us that something really bad is going on behind the scene, but do not want to spread panic to the public.

The property market is definitely a ponzi scheme. The only way for house prices to continue to go up is to have willing buyers to go into further debt. It's not like wage income are growing fast enough anyway. And when banks are still absorbing a large amount of cost to maintain their existing mortgage loan, it's no wonder they will continue to rise mortgage rates regardless of the official rate.

And when everything falls, the people who got in and capitalised the scheme will come out winning at the expense of those who got in late.

Owning a home is a 'scheme' now??? LOL!

 

[numbercruncher]

Owning a home is a 'scheme' now??? LOL!

Seems selling one is as well now looking at the sheer numbers flooding onto the market (ie/ currently 80k proeperties forsale in NSW was 60k lastyear, and rising rapidly im sure!)

 

[professor_frink]

Seems selling one is as well now looking at the sheer numbers flooding onto the market

Not a scheme, just a bit of panic from the punters

 

[CAFA1234]

hello,
look at this one bro:
http://www.abcmortgages.com.au/No_Deposit_Home_Loans.aspx
awesome stuff, credit crunch no where to be seen,
rents up, house prices up this is fantastic, what a pyramid scheme
thankyou
robots

Robots - mate, you just don't get it do you?
All these web sites are just teasing you to get you to fill out the form so they can speak to you and send a commission only sales rep around to sign you up. Try actually applying for a loan, and then publish the results on this board.
If we look at the lenders panel for this mob, it includes some very fringe financial companies e.g. Liberty Financial. Go have a look at Liberty, they are a specialist in the loans the banks wont touch
. Do you think these guys are going to give you 105% undocumented mortgage at normal rates - get real.

Brisbane Times - today.
Borrowers used to be fairly safe in the assumption that increases in their home loan rates would follow the changes made by the Reserve Bank. But the global credit crunch means that lenders are paying a lot more for wholesale funds and are passing that extra cost on to borrowers.

Liberty Finance increased the rate on its Star home loan from 7.54 per cent on August 1 last year to the present rate of 9.45 per cent. That is almost twice the level of the increase in official rates.
---------------------------------

This increase is twice what the RBA has done in this period. And of course the Star home loan is only available to some people at this rate.


Also watch out for many lenders small print e.g. Deferred establishment fee - that can add a full 1% extra.

Don't get fooled by these web sites. the golden rule of any web site is to draw traffic and get you to click.