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There's a story about that on MTR1377 right now.
Just inflating the bubble bigger.....stupid
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.
Property is going to crash dramatically.
I just bought one.
Hope you can make it over the ditch for the house warming Wayne.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)
and goodluck to the holders of rental properties in QLD, uptick in the yield
thankyou
professor robots
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)
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
When we were in the UK we were considering something like this -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.
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.
In the absence of increased debt or, cough, "quantitative easing", the money has to come from elsewhere in the economy.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.
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.
Reinsurance covers the bulk of Suncorp's liability so most of the money will be coming from Europe, Japan and the US.
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