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Your trend is tremendous!
If it falls next week by a couple of percent, will you be a bear then?
What is this? Clearance rates at auction on the rise? It can't be !!!! But but but the property bears were gloating that property is ........ Oh what's the use.
Read more: http://www.news.com.au/money/proper...ll/story-e6frfmd0-1226101104435#ixzz1T6yb2q9m
Your trend is tremendous!
If it falls next week by a couple of percent, will you be a bear then?
The monthly RP Data – Rismark House Price Index was released this morning for May with the raw data showing a fall of 0.5% after last month’s fall of 0.1% was revised to -0.3%. In seasonal adjusted terms the fall in May was 0.3% after last months 0.3% was revised to a fall of 0.4%.
The RBA has just released its Financial Aggregates for May. It is more of the same with credit growth remaining subdued, with housing credit growing at the slowest rate in 35 years of current data and at a three month annualised pace of just 5.2%.
*GROWL* yeppers. It was in response to the stooopid report as to how there have been 400 writs in 2 months for delinquent mortgages. (This has been the average in VIC for over 4 years now) Both items of so called news are frivolous and meaningless at best.
But but but interest rates are going to 18% and we are a massive Ponzi scheme they screamed. Banks are lending up to 15 years at 8.33% fixed. Like that is gonna happen eh?
http://www.commbank.com.au/personal/home-loans/fixed-rate/rates-fees/
But but but housing is gonna fall just like America and probably worse they belted out in tune. Guess again. March 2010 to March 2011 was a massive 0.2% drop.
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0
But but but Auction Clearance Rates have dropped and Enzo is reporting/non reporting I dunno ... he is fudging the figures they squealed.
http://macrobusiness.com.au/2011/06/rpdata-index/
But but but banks are offering us all easy credit and I can get a gazillion dollar home loan on 100% borrowing and they will compound the LMI and I only earn $500 a week selling **** on ebay.
http://macrobusiness.com.au/2011/06/credit-growth-remains-subdued/
Need I go on?:
Sounds like the desperate excuses that stock brokers were peddling before the stock market did it's second and third run of tanking during GFC1.
Retail in this country is under enormous pressure, and, as borrowing for consumption and pumping into over-inflated housing bites, we could be in for some nasty surprises.
Do you not get a feeling of impending trouble over the next 6 months, with retail stores closing, and loss of confidence in government?
The RBA has just released its Financial Aggregates for May. It is more of the same with credit growth remaining subdued, with housing credit growing at the slowest rate in 35 years of current data and at a three month annualised pace of just 5.2%.
housing is gonna fall just like America and probably worse they belted out in tune. Guess again. March 2010 to March 2011 was a massive 0.2% drop.
But but but banks are offering us all easy credit and I can get a gazillion dollar home loan on 100% borrowing
<snip>
"Investment guarantor loan: If your parents can guarantee your loan using their property as security. Then you can borrow 105% of the purchase price and pay no LMI. You can read more about this on our family guarantee page."
But but but in 2008 your graph says we were spending 72% of our wages on a mortgage. Hardly likely as banks will not lend past 30% as a DSR and also takes into account uncommited income as well as a raft of other economic factors. But you knew this as well didn't you?
Not at all. It has been much worse than this previously and we somehow managed to get through. Jobs is the key. Have a look at what our employment rate is. Once this starts skyrocketing towards double digits then it will be time to get out of Dodge.
But but but in 2007 this little alien-human hybrid did negotiate refinancing of an IP with repayments above 100% of gross income and no guarantor required. All of this was achieved via wonderful products called "no doc" loans (offered to me by no less than two Australian Banks - including one of the major 4).
Bearing in mind that mortgages are generally written up as "debts for life" (ie. 20+ years duration) I could readily accept the plausibility of the graph in question (even if the banks did resume more conservative lending policies as early as 2008).
In my case the resultant mortgage was not discharged until settlement on the sale of the property in December 2009. So I presume that I was a part of the statistics that contributed to that illuminating graph.
Do you know what the definition of "unemployment" is for the purpose of the calculations behind this widely publicised 5% statistic?
I read somewhere recently that :
"Australia adopts the standard international definition of unemployment: people are unemployed if they did not work for at least one (paid) hour in the previous week, were actively seeking work and were able to accept a job in the next week if it were available."
I also suspect that engagement in many of the obligatory training and mutual obligation programmes place the welfare recipient outside of this "unemployment" definition for the duration of their participation in said programmes.
Do your statistics have anything to say about the underemployed? (I have heard that these poor souls are now in the double digits, I'm probably a little of topic here, but perhaps you could confirm.)
i'll just leave this here
Go Gecko real estate group calls in administrators
http://www.heraldsun.com.au/news/br...n-administrators/story-e6frf7ko-1226098767854
TH, I think that you will find that many Low Doc loans were granted based on fraudulent information provided by the applicant. I know of several people who were encouraged by mortgage brokers to lie to get the loan.
Even myself was encourage by a mortgage broker to stretch the truth in order to obtain a lot larger amount of debt than I felt comfortable with, so I did not proceed with that mortgage broker.
The question is how many loans have been provided on incorrect information?
Cheers
... The banks and the financial systems are totally different between OZ and USA. But you know this right? You have been there first hand and found out for yourself right? You do know that PPOR's in the states that the repayments are tax deductible and capital gains is applicable and 110% ratchet loans are the norm right? We don't have that here. (you knew this as well I am sure)
Bank dollar value loans have gone up but I notice you did not provide the intrinsic value of the real estate portfolio it represents? Can't have one without the other old bean.
But but but in 2008 your graph says we were spending 72% of our wages on a mortgage. Hardly likely as banks will not lend past 30% as a DSR and also takes into account uncommited income as well as a raft of other economic factors. But you knew this as well didn't you?
Which is probably why home lending is at it's lowest point in 35 years due to the tightening of credit by the banks. Many people still want to borrow to buy a house but not many banks are lending the money to do so.
Average income in Australia is $66,500. Average housing loan is $284,500. This equates to 4.27819 times income ratio. Average LVR is around 64% DYOR
you cannot do that so easily.
It fails to appreciate that average income of an Australian does not equal the average income of a person with a loan, nor does the average loan figure provided represent the average loan that is held by someone of the average income for the loan.
Therefore mortgage stress is going to be real. Try explaining your figures to people in retail jobs who have lost them, had hours cut drastically or are in fear of losing their job.
But but but FX Trader started it with his "average incomes" graph from Steven Keen !
Sure there are going to be people on higher incomes as well MW
Maybe their debt ratio is higher because they can afford it
If you are on the "average" wage of $66,500 and you have no other commitments then you can boorow approximately $403,00 over a 30 year period at P&I. PLUS deposit.
We all cannot live in friggin McMansions on the canals MW. So therfore the "average" mortgage is about right then.
Ummmmmm what people have been sacked in retail MW? Last time I looked they were sacked for planking on the job. Sure thing retail is doing it tough but I do not see the headlines screaming that Myer and David Jones are sacking 300 workers?
You are too late MW ..... mortgage stress is real and is happening now. I must have said this about 20 times already. IN CERTAIN AREAS. Whether it be the demographic of the 95% LVR kiddies who have lost the second job cause she is pregnant or he has gone out and bought the flash new car to go with the McMansion and over extended themselves ....... or whether it be the ones who got sucked into a house and land package on the thinnest of margins in a crap area (think Ipswich now) and who cares. History repeating itself yet again.
Job security ..... surely you can remember when interst rates were at 17% and unemployment at 10% not that long ago and you are worried about the retailers doing it tough? C'mon ...... getting old has turned you into a cuddly bear stuck in a comfort zone.
Well my little alien - human hybrid believer that God is a woman kind of person ......
YOU LIED ON YOUR APPLICATION FORM.
With a "No Doc" loan you have to advise that you have the earning capacity to repay the debt either by a personal guarantee by yourself or by a letter from your accountant evidencing same.
You know when you signed the application form, then you signed the Letter Of Offer, then you signed the Mortgage Documents you fraudulently obtained money. Tsk Tsk. I wonder what Woman God will have to say about this act of deception?.
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