The future of Australian property prices

[Dowdy]

Actually the banks are bending over backwards and reducing LVRs to get people into home loans (desperation) to boost their loan book and keep the bubble ticking along. Review this link for a no deposit home loan...

http://www.loanmarket.com.au/home-loans/no-deposit/

Also from Debtwatch...

At present, you need a $30,000 deposit to bid $1 million for a property if you get a loan from the Commonwealth Bank, which currently has one of the highest maximum LVRs of 97%: “The maximum we will lend you is 95% of the valuation amount. We also add the Lenders Mortgage Insurance or a Low Deposit Premium to your loan (up to a maximum of 97%), so it doesn’t cost you anything upfront”.

This press release implies that you could approach St George with $20,000 in savings, be given a $1 million loan, and have it recorded as a 95% LVR loan (since St George probably has the same maximum published LVR as Westpac of 95%) where $20,000 was your actual deposit and the effective LVR was actually 98%.

The effect of this trick is to expand the pool of potential borrowers to whom St George can extend a loan, while appearing not to alter its lending standards.

From the Loan Market press release: “This is a major step forward which will also boost activity in the struggling home finance sector and we expect other lenders to follow suit.” It will enable the banks to meet their loan sale targets, by expanding the number of applicants who qualify for a loan.

There's a story about that on MTR1377 right now.

Just inflating the bubble bigger.....stupid

 

[explod]

When are the knuckleheads going to realise that the party is over for now.

Floods, bushfires, droughts, overproduction, overpopulation and far too many idle due to industrialisation, mechanisation and technology, to make us live longer, make money in cyberspace, short circuit the dealers by buying online, and enjoying ourselves online. Stuff the pub, too much fun here in the property thread. In fact who needs his own house, just a shed out the back of my Son's place.

It has to give and I think it is starting to.

 

[Sean K]

Property is going to crash dramatically.

I just bought one.

 

[robots]

hello,

well good evening brothers,

oh yeah tragics listening to 3AW and MTR, man put some music on

and goodluck to the holders of rental properties in QLD, uptick in the yield

thankyou
professor robots

 

[wayneL]

Property is going to crash dramatically.

I just bought one.

Nonsense!

A crash will not happen till the last bear buys.
.
IOW, when I buy, it will be all over.

(wayneL is actively in the market for a PPOR )



(mind you, nobody has liked my offers so far )

 

[Sean K]

Nonsense!

A crash will not happen till the last bear buys.
.
IOW, when I buy, it will be all over.

(wayneL is actively in the market for a PPOR )



(mind you, nobody has liked my offers so far )

Hope you can make it over the ditch for the house warming Wayne.

 

[satanoperca]

and goodluck to the holders of rental properties in QLD, uptick in the yield

thankyou
professor robots

Ah professor you make me laugh, renter walks away from flood effected house, sure they may have to pay a few grand more per year in rent but bets the heck out of lossing hundreds of thousands on a home that insurance will not pay out on and new planning laws will not allow to rebuild on the land again.
Always a sunny side, this time renter wins
Cheero

 

[Tysonboss1]

Here is a great little documentery about the housing crisis in the states, This kinda of scale of foolishness just has not happened in Australia. So those banking on similar sorts of falls will probably be disappointed.

I believe some parts of Australia will stagnate, but is that really anything to worry about. I would love to see large falls as much as anybody, but its not going to happen

 

[trainspotter]

Nonsense!

A crash will not happen till the last bear buys.
.
IOW, when I buy, it will be all over.

(wayneL is actively in the market for a PPOR )



(mind you, nobody has liked my offers so far )

You could probably afford one of these WayneL. Everyone on the Brisbane River should be living in one of these !!!!!! Flash flood ..... no problem ........ just float away.

 

[indeck]

Here is a great little documentery about the housing crisis in the states, This kinda of scale of foolishness just has not happened in Australia. So those banking on similar sorts of falls will probably be disappointed.

I believe some parts of Australia will stagnate, but is that really anything to worry about. I would love to see large falls as much as anybody, but its not going to happen

If it unfolds here it will be because of the cost of living factor which I think recently is becoming increasingly worse the last few years. Interest rates will play a part of this as they head further north. Power, registration, food etc all seems to be going up more than ever before. I think there are a growing number of people who are also unwilling to enter the housing market at current levels. I'm one of them. For me personally unless it stagnates for a few years i'm not going to bother buying a home, i'm doing too well in the share market and living relatively cheaply renting in the inner city.

 

[wayneL]

You could probably afford one of these WayneL. Everyone on the Brisbane River should be living in one of these !!!!!! Flash flood ..... no problem ........ just float away.View attachment 40978

When we were in the UK we were considering something like this -

http://www.boatshopuk.co.uk/index.php/page/sale-boat/boat_index/0912

Because of the canal system you can travel just about anywhere in one of these.

 

[trainspotter]

When we were in the UK we were considering something like this -

http://www.boatshopuk.co.uk/index.php/page/sale-boat/boat_index/0912

Because of the canal system you can travel just about anywhere in one of these.

I have watched a documentary where some crazy British celebrity drove around in the canal boats doing a massive pub crawl through Britian. It looked fantastic !! The canal boat he had was pretty swish as well, all decked out internally with groovy stuff.

Anyways ....... here is an interesting article for the doomsayers.

WHILE property prices ease across the country, economists are predicting Perth will buck the trend and return to a booming real estate market by mid-year.
For those eager to get into the property market, it seems that after years of seemingly unstoppable housing growth 2011 could be the year to secure a slice of the Great Australian Dream.

http://www.perthnow.com.au/news/the...battling-aussies/story-e6frg12c-1225992388112

 

[Shape]

the recent floods will cause pressure on business and employment, which i think in the next 2-3 month would push property price dramatically down.

The most interesting point to note is what the RBA will do on 1st of Feb- leading up to the flood crisis the RBA has hinted a possible rate increase, but would the recent flood change their minds?

increase rate + flood = bargain property to be found

 

[c-unit]

Come on TS, you are too smart to trust an economist!!

 

[Tysonboss1]

the recent floods will cause pressure on business and employment, which i think in the next 2-3 month would push property price dramatically down.

What?.

Hmmm,..

Do you see many unemployed tradie or labourer in the affected areas? I think they are all working over time, and their wages has to get spent at some other business.

Do you think Business will really be under pressure when every one starts spending those insurance/ government handout dollars replacing all their stuff that was lost?

Sounds like a mini stimulus package to me.

Plus in the grand scheme of things the affected areas are to small to have any real impact,

Plus any loss in the number of dwellings increases pressure on rents so rental yields in neighboring areas will rise.

 

[drsmith]

Sounds like a mini stimulus package to me.

In the absence of increased debt or, cough, "quantitative easing", the money has to come from elsewhere in the economy.

 

[Tysonboss1]

In the absence of increased debt or, cough, "quantitative easing", the money has to come from elsewhere in the economy.

Thats right, the stock and bond market.

As the insurance companies sell off their capital holdings to fund the payouts.

 

[So_Cynical]

In the absence of increased debt or, cough, "quantitative easing", the money has to come from elsewhere in the economy.

Thats right, the stock and bond market.

As the insurance companies sell off their capital holdings to fund the payouts.

Reinsurance covers the bulk of Suncorp's liability so most of the money will be coming from Europe, Japan and the US.

 

[Tysonboss1]

Reinsurance covers the bulk of Suncorp's liability so most of the money will be coming from Europe, Japan and the US.

Don't you love securitisation.

 

[c-unit]

Reinsurance covers the bulk of Suncorp's liability so most of the money will be coming from Europe, Japan and the US.

LOL! Poor American's can't catch a break.