The future of Australian property prices

[qldfrog]

did you see the Italians seized a luxury yacht owned by a Russian who was NOT on any sanctions list
seems he was in a photo with a billionaire who was photographed ( in a different photo ) with Putin

close enough for the Italians

In France, all russian names were locked from banks account frozen in out and they had to get a meeting to an agency to release..i am talking migrants clercks etc working in France for decades etc..but the french banks were scared to let something go..so they blocked the lot.
From reading the figaro .a month ago..

 

[3 hound]

Seizing assets from rich people in the east by rich people in the west is the 2020's version of the crusades and colonisation combined.

Not much changes at the fundamental human level really.

 

[divs4ever]

source?

Watch Police Seize $578 Million Superyacht Linked To Russian Billionaire

The “Sy A” was seized in Trieste, Italy, amid a crackdown on oligarch wealth to pressure Vladimir Putin to halt Russia’s war on Ukraine.

www.huffpost.com

Italy’s financial police (@GDF) has just frozen “SY A” - a sailing yacht worth ~€530m located in the Port of Trieste. The yacht could be linked indirectly to Andrey Igorevich Melnichenko - an individual in the EU sanctions list.

key words are 'could be ' and ' indirectly ' .. it doesn't matter if the sanctioned person was Putin himself or even Osama bin Laden once you start using 'wiggle words like that ' ...

 

[divs4ever]

and there is this one

Italian Police seize world's biggest sailing yacht owned by oligarch

Italian police seized Sailing Yacht A today in Trieste, placing the £450m vessel into a dry dock so it cannot be moved. The yacht is owned by Russian oligarch Andrey Melnichenko and sails under a UK flag.

www.dailymail.co.uk

China had better start cranking up their luxury goods manufacture because to customers will be coming SOON

 

[divs4ever]

i hope the Europeans aren't thinking of usual business agreements with these sanctioned oligarchs , i sure they will now include 'special provisions ' for deals tn the EU ( like payments in gold by the less vindictive oligarchs )

 

[sptrawler]

Just had a bit of a lightbulb moment with the missus while watching the giro d italia, I just mentioned in passing that I'm worried about the situation the kids are getting in spending rather than paying down debt, she said that's because I wouldnt be happy if I was in the same situation, but they have every right to chose what they want to do.
I have to stop trying to tell them what to do, they are 40+ years old, maybe she is right again. Lol

 

[over9k]

Just had a bit of a lightbulb moment with the missus while watching the giro d italia, I just mentioned in passing that I'm worried about the situation the kids are getting in spending rather than paying down debt, she said that's because I wouldnt be happy if I was in the same situation, but they have every right to chose what they want to do.
I have to stop trying to tell them what to do, they are 40+ years old, maybe she is right again. Lol

No, she's right, if you know interest rates are going to increase you want to pay your debts down ASAP.

 

[divs4ever]

Just had a bit of a lightbulb moment with the missus while watching the giro d italia, I just mentioned in passing that I'm worried about the situation the kids are getting in spending rather than paying down debt, she said that's because I wouldnt be happy if I was in the same situation, but they have every right to chose what they want to do.
I have to stop trying to tell them what to do, they are 40+ years old, maybe she is right again. Lol

well you have tried , and i think you were right to try , you are fighting society's conditioning , and you might not win

now your wife has a point in saying 'nagging' is often counter-productive , some people just have to learn by first-hand experience

if you decide to step back , and let them experience consequences , what do you do next ?

the temptation is to become 'the bank of mum and dad ' but is that the right solution ( to the long-term wisdom of your children ) ??

( whatever you choose has consequences , the character of the children will affect the outcome )

cheers

 

[Knobby22]

Watch Police Seize $578 Million Superyacht Linked To Russian Billionaire

The “Sy A” was seized in Trieste, Italy, amid a crackdown on oligarch wealth to pressure Vladimir Putin to halt Russia’s war on Ukraine.

www.huffpost.com

Italy’s financial police (@GDF) has just frozen “SY A” - a sailing yacht worth ~€530m located in the Port of Trieste. The yacht could be linked indirectly to Andrey Igorevich Melnichenko - an individual in the EU sanctions list.

key words are 'could be ' and ' indirectly ' .. it doesn't matter if the sanctioned person was Putin himself or even Osama bin Laden once you start using 'wiggle words like that ' ...

Well if the ownership is so convoluted, trust fund and companies ect. yet an oliarch is the guy living on it and holding parties then go for it.

My attitude is if you haven hidden ownership to such an extent then you don't own it anymore. And if it takes 3 years to work through the ratnest then it takes 3 years. Bad luck.

I am sure everyone involved knows the ogliarch owns it in reality.

 

[sptrawler]

The banks are starting to prepare for the wreckage.

‘No appetite’: ANZ and NAB tighten higher risk lending

Two of Australia’s major banks are cutting back on new lending to the most highly-indebted borrowers.

www.smh.com.au

Two of Australia’s major banks are cutting back on new lending to more highly indebted borrowers, as financial institutions and regulators prepare for the impact of rising interest rates on mortgage customers.
As money markets bet on a series of interest rate rises this year, ANZ Bank this week said it would no longer accept loan applications from borrowers with total debts more than 7.5 times their income. Previously, the bank was prepared to consider applications from customers with debt-to-income (DTI) ratios of up to nine times.

 

[Warr87]

The banks are starting to prepare for the wreckage.

‘No appetite’: ANZ and NAB tighten higher risk lending

Two of Australia’s major banks are cutting back on new lending to the most highly-indebted borrowers.

www.smh.com.au

Two of Australia’s major banks are cutting back on new lending to more highly indebted borrowers, as financial institutions and regulators prepare for the impact of rising interest rates on mortgage customers.
As money markets bet on a series of interest rate rises this year, ANZ Bank this week said it would no longer accept loan applications from borrowers with total debts more than 7.5 times their income. Previously, the bank was prepared to consider applications from customers with debt-to-income (DTI) ratios of up to nine times.

The fact they were willing to take up to 9 times is crazy. Even 7.5 is high and I thought rather risky already.

 

[dyna]

From today's AFR:
APRA considers a debt to income ratio of more than 6 times as being high and the growth of high debt : income within the big 4 banks, to be not widespread. It is concentrated in just a few ( unnamed ) banks .
CBA's Matt Comyn says the bank's economists predict a peak RBA cash rate of just 1.6% , about half what money markets are pricing in right now.

 

[Warr87]

6 is high but i feel is managable in most circumstances. interesting point on where the debt is. and also where the banks are predicting cash rates. 1.6% does seem low to me. but i'm definitely no economist. it will be an ever changing space tbh as it is complex.

 

[3 hound]

If your not on a very secure or fixed income/salary it doesn't matter if it s 2 or 10 if/when the economy goes south because your 6 could become a 2 overnight and your screwed.

That's why landlords and lenders around my area rather deal with someone on full welfare payments than much higher paid workers.

 

[MovingAverage]

Enthusiasm certainly seems to be coming out of the housing market: was reported today that April home loans down 7% (consensus was expecting a drop of circa 1% so 7% is very unexpected) and investment home loans for the same period down 4.8%. These are MoM figures.

 

[againsthegrain]

here we go the sensational articles about whinging are in.

A Sydney couple who pay $3400 a month for their mortgage, have been left reeling by the mammoth interest rate hike and predict things could get “difficult”.

Are these people from mars? they could of predicted it with a mortgage calculator before they took the loan out.

I am beginning to think these are the people that are responsible for the runaway prices, vicious circle that is eating itself alive.

And now they want everyone else to chip in right?

https://www.news.com.au/finance/economy/interest-rates/sydney-couple-with-840k-mortgage-fear-difficult-financial-impact-of-interest-rate-rise/news-story/c8d0bd34a7213eaa30c469f238befdce

 

[MovingAverage]

here we go the sensational articles about whinging are in.

A Sydney couple who pay $3400 a month for their mortgage, have been left reeling by the mammoth interest rate hike and predict things could get “difficult”.

Are these people from mars? they could of predicted it with a mortgage calculator before they took the loan out.

I am beginning to think these are the people that are responsible for the runaway prices, vicious circle that is eating itself alive.

And now they want everyone else to chip in right?

https://www.news.com.au/finance/economy/interest-rates/sydney-couple-with-840k-mortgage-fear-difficult-financial-impact-of-interest-rate-rise/news-story/c8d0bd34a7213eaa30c469f238befdce

This crap really makes my blood boil -- picture an old man yelling at clouds and that is pretty much me.

I was reading an article from a well known economist recently arguing that the RBA needs to be very mindful about the impact increasing interest rates will have on recent home buyers who are heavily leveraged. While I have a level of sympathy for those with massive mortgages I certainly hope the RBA makes its future decisions on rate rises that are in the best interests of broader economy even if that means those carrying huge mortgages feel significant pain.

 

[Warr87]

This crap really makes my blood boil -- picture an old man yelling at clouds and that is pretty much me.

I was reading an article from a well known economist recently arguing that the RBA needs to be very mindful about the impact increasing interest rates will have on recent home buyers who are heavily leveraged. While I have a level of sympathy for those with massive mortgages I certainly hope the RBA makes its future decisions on rate rises that are in the best interests of broader economy even if that means those carrying huge mortgages feel significant pain.

As I've mentioned I have some sympathy. But the RBA has a job to do. The key point there is highly leveraged. Where else would you get people trying to argue for leniency with a highly leveraged product? Can I borrow 9x my income to buy shares/futures and then whinge when it's difficult? lol. RBA is working for the economy not for individuals who should've known better, and quite frankly, probably new it would be difficult if rates raised. They took a chance that they could pay down enough before that would be an issue, or assumed there pay would raise at a greater rate. Not all gambles work out ....

 

[MovingAverage]

As I've mentioned I have some sympathy. But the RBA has a job to do. The key point there is highly leveraged. Where else would you get people trying to argue for leniency with a highly leveraged product? Can I borrow 9x my income to buy shares/futures and then whinge when it's difficult? lol. RBA is working for the economy not for individuals who should've known better, and quite frankly, probably new it would be difficult if rates raised. They took a chance that they could pay down enough before that would be an issue, or assumed there pay would raise at a greater rate. Not all gambles work out ....

Now my sample size is not exact relevant, but having attended a few auctions in my local area over the past few years I'm often blown away that there are folks out there who have openly said to me "things have changed in the economy and we will never see high interest rates again". Yup, a few people have actually said that to me. So to your point "individuals who should've known better"....I'm not so sure the masses are that smart. Hope I'm wrong, but I remain unconvinced that people should have known better. I guess it won't be long before we see who is standing naked as the tide runs out

 

[againsthegrain]

This crap really makes my blood boil -- picture an old man yelling at clouds and that is pretty much me.

I was reading an article from a well known economist recently arguing that the RBA needs to be very mindful about the impact increasing interest rates will have on recent home buyers who are heavily leveraged. While I have a level of sympathy for those with massive mortgages I certainly hope the RBA makes its future decisions on rate rises that are in the best interests of broader economy even if that means those carrying huge mortgages feel significant pain.

I'll join you and throw some rocks too just watch out when they come back down ?