That is simply not how it works.
Those "holding out" for todays prices will end up selling for much less when they finally capitulate IMHO.
It's interesting. On one hand, if real-estate agents tell people to hold, it will tighten supply and put pressure on prices to at least stay the same.
The share of home loans with a maximum LVR of 95 per cent or more made up 62 per cent of all home loans in June, up from 54 per cent in January, according to RateCity's database of 2500 home loans on offer in Australia
“High LVR home loans need to be considered very carefully and while it's better value to save for a bigger deposit, if you do choose a high LVR home loan, make sure you accelerate your repayments and look at refinancing in a year or two when your equity has grown,” said Mr Smith.
No irresponsible lending in Oz.
The share of home loans with a maximum LVR of 95 per cent or more made up 62 per cent of all home loans in June, up from 54 per cent in January, according to RateCity's database of 2500 home loans on offer in Australia
Quarter of estate agents walk out
By Michael Dickison
5:30 AM Tuesday Jun 7, 2011
A quarter of New Zealand real estate agents - almost 5000 - have deserted the industry in the past year during a bleak period of low sales.
Real Estate Agents Authority figures show almost 2000 Auckland agents have suspended their licences or let them lapse in the past 12 months.
Ray White agency chief executive Carey Smith said the slow real estate market had "pulverised" the sales force, who depended on commissions for their income.
"Sales are down, particularly in rural, and that had people seeking other employment," Mr Smith said.
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10730634
This does not necessarily construe irresponsible lending.
I think you need to consider as well, who trusts realestate agents? there worse than used car salesmen. I mean i think people are smart enough to make there own decision and not just take what the realestate agent says as gospel lol
Yeah 95% LVR does IMO....
but in fairness to everyone, unless someone sees your property, falls in love with one or more of its features and is ready to buy, it's all very open to raw emotions, the building of false hopes and media speculation/fear-mongering.
Apart from doing all the obvious things like fixing up the house, taking it to market properly and being patient, ther's really not much else a vendor can do.
Thanks
The % of LVR has no bearing on whether lending is irresponsible or not - it comes down to the borrow's capacity to repay.
One has to look at the facts - who is borrowing at 95% LVR and how much do they earn per year. Simply saying that 95% LVR is irresponsible is not justified.
No, no it doesn't IMO 95% LVR is just not prudent in any way shape or form. There is no fat there at all, that is pricing for perfection which as far as a policy for a bank goes is madness.
It comes down to being a calculated risk
I think I finally get you Kurwa. You are a logical reductionist! Everything always comes down to something for you.
The truth of the matter is, everything is far more complicated than that, you are claiming against idealistic rules that were abandoned by all players of this game long ago so you simply can't reduce the discussion to those simplicities and expect it to hold up against the real world!
No, no it doesn't IMO 95% LVR is just not prudent in any way shape or form. There is no fat there at all, that is pricing for perfection which as far as a policy for a bank goes is madness.
Agreed
Out of interest, what do you think of 90%?
Perhaps it is a naive oversimplification, but arent banks effectivly geared to that ratio?
No, no it doesn't IMO 95% LVR is just not prudent in any way shape or form. There is no fat there at all, that is pricing for perfection which as far as a policy for a bank goes is madness.
I am currently selling my home (in Melbourne's eastern suburbs) and was convinced to go to auction at the end of May. My property was passed in with no bidders - that was a bit humiliating. Since then, I am now up for sale and I am taking all of this as a sign of a softening market I suppose. In fact local results would suggest that "first homes" are still moving OK, but "ready to move into" homes like mine have solwed a little and the "luxury" end of the market seems to be where good savings can be made (% savings are relative I guess).
I had an open mind about real estate agents at the start of this process, but since he has now argued around 2 of his primary "differentiators" that were offered before I signed him up, I have to understand why people think they are a bunch of "shonks". They don't do themselves any favours with their behaviours and their "fast-talking" which is probably meant to confuse the punter, soon falls apart when you point out a counter argument they offered just 2 weeks prior. (Tip: If you're going to tell lies, at least be consistent).
I remain phylosophical about selling my home (it will sell eventually, for a fair price, I am sure) and I am lucky to be able to wait for that to happen, but in fairness to everyone, unless someone sees your property, falls in love with one or more of its features and is ready to buy, it's all very open to raw emotions, the building of false hopes and media speculation/fear-mongering.
Apart from doing all the obvious things like fixing up the house, taking it to market properly and being patient, ther's really not much else a vendor can do.
Thanks
Agreed
Out of interest, what do you think of 90%?
Perhaps it is a naive oversimplification, but arent banks effectivly geared to that ratio?
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