The O'Donnells have had the $500,000 loan against their home cut by 75 per cent following unsuccessful Supreme Court action taken by their lender, Brisbane-based First Mac.
Hate to break it to the Permabull crew but Low-Doc is a big part of the over inflated RE market in Oz -
.....
ALMOST one in 10 homes in WA are currently worth less than was paid for them, with two southern regions in the nation’s top five for negative equity, according to RP Data.
The market analyst’s quarterly Baseline Equity Report to the end of December, released today, revealed that 6.4 per cent of Australian homes are currently valued at less than the price they were bought for.*
http://www.perthnow.com.au/business/negative-equity-starting-to-bite-in-wa/story-e6frg2ru-1226305392616
The fat lady has Begun to sing my wee permabull friends ....
Gina Rinehart singing, must be all that money she is rolling in. The future is bright my dropbear friend
Gina Rinehart singing, must be all that money she is rolling in. The future is bright my dropbear friend
Not to sure how long she will last.
With the recent high price of commodities worldwide we have massive new coal and ion ore fields opening up in South Africa, Indonesia and South America.
China now hitting the wall due to overproduction against falling consumption.
Not a god mix.
Would not want to be a property investor for any money at the moment.
STRUGGLING homeowners stung by improper lending practices during the property boom are being let down by complaints resolution processes funded by lenders themselves, consumer advocates have claimed.
Banking and Finance Consumers Association president Denise Brailey said aggrieved borrowers had in many cases had hundreds of thousands wiped from their mortgages by the nation's two main lending arbitrators. However, the courts had regularly delivered yet more favourable outcomes for those victims who could afford to use them.
"The problem for borrowers, and obviously those on the verge of bankruptcy, is they simply can't afford to run these hugely expensive court cases against the major lenders," Ms Brailey said.
"On the other hand, industry mediators like the Financial Ombudsman Service, which are funded by lenders, are free."
Another concern was that lenders almost always pushed for confidentiality clauses to accompany settlements, which made comparisons extremely difficult.
The Australian has revealed thousands of struggling homeowners could walk away from some or all of their mortgages, as a series of court cases have found in favour of borrowers who have been hit by unscrupulous lending practices.
And here is some advice for and readers who may have been suckered in by the money Dealers ....
http://www.theaustralian.com.au/news/nation/subprime-borrowers-let-down-by-system/story-e6frg6nf-1226383963085
5.5% of lo docs in default. And lo docs are 8-10% of all mortgages. So that's .55% of all mortgages. Plus full docs- 1.26% default, 90% of all mortgages. 1.134%. Total 1.6834% of all mortgages together.
Me so scared
Almost 12 per cent of all Queensland homes are in negative equity, 9.2 per cent of homes in Brisbane are valued below their purchase price, and the state’s northern and coastal regions also topped the list.*
“Far North Queensland, and the Gold and Sunshine Coasts have the highest instances of negative equity at 22.6%, 19.4% and 15.3% respectively,” the report said.*
http://www.perthnow.com.au/business/negative-equity-starting-to-bite-in-wa/story-e6frg2ru-1226305392616
And that doesnt include the enormous amounts of boofheads who unlocked their " equity mate " to live far beyond their capabilities .....
Not to mention all the retirees that didnt plan for retirement using the home as a ATM week n week out now and going forward ....
The fat lady has Begun to sing my wee permabull friends ....
Not to mension this is an even smaller percentage of the overall property market... just what percentage of houses have a morgage attached and what percentage of this is above 80%lvr , you guys are really grabbing at straws but with such a huge emotional investment attachment to your position (actually thats all you have invested in your positione) who can blame you!
You bears really need to lower your emotional lvr, get a decent nights sleep, and stop it from it from clouding your judgement.
Got any hard evidence on the direction of Oz realestate yet or just this dismissive realestate agent type suff ?
Youve already posted up all the eveidence contrary to your "mega crash". Thanks as everyone can see most asset classes are suffering varying degrees of price deflation with property so far fairing far better than most especially when lookinh at total returns.
and so you should be...
View attachment 47344
Follow the blue line... as we approach 0 it becomes impossible to maintain price growth.
In the end it is THAT simple.
Not to mension this is an even smaller percentage of the overall property market... just what percentage of houses have a morgage attached and what percentage of this is above 80%lvr , you guys are really grabbing at straws but with such a huge emotional investment attachment to your position (actually thats all you have invested in your positione) who can blame you!
You bears really need to lower your emotional lvr, get a decent nights sleep, and stop it from it from clouding your judgement.
and so you should be...
View attachment 47344
Follow the blue line... as we approach 0 it becomes impossible to maintain price growth.
In the end it is THAT simple.
Nothing a few more million migrants and a lack of building won't fix.
*yawn*
I'll tell you all when I start sweating.
This week's RP Data national house price index is down 1.7 per cent, with Melbourne especially on the cusp of a crisis with an oversupply of houses and a slow economy.
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