Forum Replies Created
Hi Jamie,
He need not live frugally in SE Asia.
))Angel
Hi Jake H,
I truly, truly sympathize with you. I have always had trouble applying for a loan until I got St George, CBA and Westpac on side.
I am fully self-employed NOW. Couldn’t be bothered to take crap from anyone anymore so left the rat race two years ago.
I look after international students at home. I have lodged ax returns for this as a business activity over 10 years when it obviously has ceased to be a “hobby.”
Before I carry on any further, I just want to tell you that I have no students in the garage
. I don’t have one. I don’t have them bunking together in double and triple bunks. They are living in their nicely furnished rooms, thank you. ))). Not a shonky landlord by any stretch of the imagination. I have 6 of them at the moment. Yeah, with my four kids, how??? House has 10 bedrooms, four showers/toilets, two kitchens, one kitchenette, two living areas. So yes, it’s big enough for all of us. It used to be a duplex and now one huge house.Anyway, going back to the story: The tax return shows net income at the end of $10k or $12K on average. Without going through the tax returns properly, wet-behind- the- ear lender will say, ” you can’t afford to borrow”. I say, did you read what’s in front of you? Do you know what “add backs” are?
The business expenses included food, water, electricity, interest, internet, telephone, mobile, fax, capital investment, foxtel, gas? Can’t you see we are all living FOR FREE. “Our living costs have already been looked after.” If your calculator is imputing living costs on what I can borrow then you have to give something back???!!!
Then they’d say “Oh, you’re too rent reliant.” to wit, I’d say, and what’s the chances of all of them being vacant all at once?
This is what I don’t get. People WHO are employees and WHO gets high salary get a loan quick smart. Common sense will show that they are the higher risk. Because if they lose their jobs as managers making $100,000 it isn’t that easy to find another job to replace their income if they get sack. Back when I was working as a call centre staff, I said the lender, “I can replace my income any time. Right now, I just need to call Julia Ross.”
Rent reliant??? Have you ever heard of multiplicity of income??? If I lose a $100K job today, that’s $100K gone in a blink of an eye. Whereas little old me, can replace my pittance of an income any old day. Have rents coming in from all directions. For me to lose all my income at once would mean that in ONE day, a fire breaks out in Cammeray. A tsunami over 50 meters and goes 1200 meters inland hits Avalon. A truck crushes into Ryde. Flooding in Richmond. An earthquake hits Gympie. And a tornado tears out SA from Adelaide to Millicent. That’s just not happening.
Having calmly explained this to the lender, she/he then smiles and says, “I understand what you’re saying but we don’t make the policy”.
At one stage it got too hard, that I say I’m single because the one time it was disclosed I have four kids, all hell broke loose. The application was approved eventually but it went all the way up to the CBA business head who saw sense. God bless him.
Yes, I appreciate the dilemma that goes with being self-reliant, ambitious, give-it-a-go self-employed people. In Asia, they are given preference over employees. I don’t get the attitude towards people who carve their own future. i simply don’t.
This is my rant for the day.
Please take care.
Angel
Hi Intrigue,
OR NOT
Angel
Dear Streamlineinvesting,
I’d like to put in motherly observation, regarding your question: Matt: You said early in the post that we were up to Step 4 with banks starting to restrict lending requirements. If your plan does play out, do you have an idea of the time frame before prices to completely collapse? We saw in USA that prices went from highs to lows over a period of about 4 years (that is if they did indeed reach the bottom). Do you expect something similar in Australia , so prices to collapse and hit the bottom of the trench around 2015 or so?
I’m not Matt but I’m fat… it rhymes.
Culture has a lot to do with price crashing. This is not highlighted enough. In Amercia, it is so easy to surrender. From what I’ve heard, people walk into their banks and hand over the keys. Full stop.
Not so in Australia. Here, home owners will FIGHT tooth and nail to keep their home from being repossessed, sometimes to their own detriment.
You can never discount the tenacity of the people. Every country has their own values and traditions. The tradition of home ownership in OZ is one of the highest in the world. And, this observation is coming from a transplanted Chinese-Filipino. I think the Australians beat the Asians when it comes to an emphatic desire to have their own roof over their heads.
It will take more than strict lending to constrict supply and demand. In fact, if you ask me, lending has constricted for two years now. Just ask Richard and co.
Thank you.
Angel
))
