Forum Replies Created
- ummester wrote:
Just in –But many older Australians with strong superannuation returns are also borrowing more and expanding their investments, helping to block younger borrowers from entering the property market.
"Surprisingly, despite the marked distribution in wealth to the baby boomers, their collective appetite for leveraged finance remains undiminished, with those in the 45-59 age group holding over a third of the nation's debt.
And you begrudge them because they are buying now rather then wait until you do, or is it because they have the balls to do it ? At least they are not hanging around the Centrelink Office for handouts. Why not wait a few years, lets say 2011, and see what your "natural organising force" will do to their finance before gloating about things crashing down around them. We'll see who was right then, if you're still around this forum that is.
You do remind me of Aesop's fable about the fox and the grapes.
ummester wrote:Unless of course the person I buy from is selling something they brought before 2000, in which case they would still make a profit out of me.
That's a funny thing to say. Does it bother you that someone is making a profit out of you ?
Quote:I might try and offer the owner some cash up front to further lower the price and therefore decrease my mortgage. ie instead of giving the banks a 30000 dollar deposit on a $250000 house,Unless you buy from an investor who pockets the cash without declaring to the tax man what difference does that really make ? Its like the other one "I'm prepared to make a cash offer subject to ….." Like someone would accept getting paid in sea shells for the house.
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I will try and get a 95 or 100% mortgage on $220000. I'll have to read up on it abit more but I am sure 2 people are perfectly capable of making binding contracts with each other.[/quote]
Sure can , buy the forms from newsagents or you can drop into a settlement/conveyancing office and ask them for some forms.
Also if you do have to get a mortgage don't go over 80% or you'll have to pay for lenders insurance.ummester wrote:Why are you botherring to debate with me so much anyway Harb?No bother at all, interested in how a bear see things.
Quote:Get to it – never know when age will fully catch up with youHopefully not before the official retirement age and unless the goalposts change I've still got 20 years to go before that happens.
ummester wrote:It goes in cycles and the greed cycle is ending is the western world. Human evolution needs cycles of both greed and understanding to evolve with stability. How glorious was being rich during the French revolution?
And just how glorious was being a peasant for the 40 years before that ? Not that it got much better after…. I know which one I'd rather be.
ummester wrote:As in 'we would love to pass on the cuts' suckers… but we won't.Anyway, this whole debating tiny changes one way or another is fruitless and becoming boring. I believe that over the next 2 years the price of property will drop by around 30% across the board. You don't. Only way we are going to be sure who is wrong and who is right is to check back in 2010. If the forums still running then, we'll compare notes.
I will still browse and read what investors are doing and how the market is changing but I can't be bothered arguing my basic point any more.
Let me see if I got this right, Ursus americanus is going back to the GPHC cave to hibernate for the next 2 years while waiting for that 30% fall across the board ? I'm sure this forum will still be around and sorry to say this but so will the losers on the other one. After waiting for that 50% drop since prices where a 1/4 of the current ones I'm sure they'll still be around forever and a day, still waiting for that big fall and still posting on this forum to CONvince us that we are wrong and they are right. Maybe now that we've agreed that a fall is not due for at least 2 years and we can't be bothered arguing about silly Socialist Theories for the New Millennium we can go back to the basics of Property Investing ?But before you do go the Scamp way, I have one question relating to that 30% drop across the board you expect.
You do realize that the majority either fully own their property or have bought for a fraction of the current costs and as such they could hardly be forced to sell below the perceived market value even if rates were to go much higher (which they aren't). The size of land has already been reduced from the "large " 1/4 acre block of a few years ago to the current "huge " 500sqm blocks so there is no scope for any noticeable reduction in price there. Also considering the large number of people waiting & willing to get into the property market a few fire sales will hardly put a dent in that waiting list. Since reducing the block size is virtually out of the question the only other way of reducing the property costs is to build upwards or for that fabled 30% drop to occur it would mean reducing the costs of building a new home by more then 30%. Short of importing building materials ( which we already do to a large extent) and bringing in foreign workers to work for at least 30% lower wages how exactly do you expect a new house to cost 30% less ?Quote:As in 'we would love to pass on the cuts' suckers… but we won't.No its as in "If we don't do then someone else will, and then there were only 3 pillars left."
ummester wrote:The one thing boomers parents forgot to teach them was not to be greedy, a lesson this whole country has to learn all over again…Sorry to disagree with you on this but greed IS good. Without GREED human evolution would not have happened and we'd still be hanging from a tree branch. For confirmation of that just look at human tribes where greed did not play an important part in their culture and how they fared through the ages. A socialist oriented market economy does not work and the fact that most communist country have dropped it in favor of the capitalist system proves it. As Deng Xiaoping said : To Get Rich Is Glorious
Scamp wrote:I have a new project starting and I won't have time to spend on these forums anymore.You mean they finally caught up with you at work ?
Good luck and all the best when you get here.cheers
ummester wrote:I know, it's the American system but the only difference between their banks and ours is that where they can only create debt that equals 9.99x the amount of holdings, Australian banks can create unlimitted debt.
And they can drop the keys to the bank manager and walk away. I guess that if I was a renter over there I would have done the same and took advantage of accommodation below rental market value even if I knew that eventually, when the rates reset from 1% to 12% or whatever, I'd have to walk away. Don't assume that everyone that entered the property market over there was a stupid redneck who got conned into buying a property by some sharp RE agent.
Quote:If you can't be bothered watching all the videos, How did you know that ?Quote:Current projections probably show that more has been loaned than what can be paid back.I don't put much fate in "experts" and their projections but assuming just a lowly 3% a year inflation figure you'd be surprised how much can be paid back over a 20-30 years period.
Quote:Trouble is, alot of the bigger investors have 0-15 years left till retirement, so if housing capital doesn't atleast cover their loans, living and interest the banks will be running at a loss on them as customers.You are forgetting the 2 basic reasons why this will never be the case : the increasing population which puts upward pressure on available land and the increase in building costs which will at least keep up with inflation.
ummester wrote:See how selfish your dreams are compared to mine? I want something for the country – you want something for yourself…
And how do you know I don't want to win so I can donate the lot to Red Cross ?
Quote:Basically you are aware that property resources are finite and that BBs got to entre the market first. Pretend there are only 2 people in the market. Logically, any property more than 1 that a BB owns is 1 the other person can't. And if the BB and the other person own a house then there is 1 house more than what is needed. See how that works?Only normal that BBs got in first since they were born first. How can property resources be finite when there are town out there dying because of the lack of young people ? As population expands the property closer to the "city center" will go up in price, no matter of who owns it . The obvious logical solution would be to start new cities, if the bloody ants can get it, bees can get it then why doesn't gen X & Y get it ? Is it stupidity or laziness ?
Quote:As long as you settle your debts with the bank before you die Harb, then nothing else about you matters.Why is that ? If the bank dies owning me money I have a problem , if I die owning them money then they have the problem.
Scamp wrote:I actually had a chuckle at this one.The funny part is that once you get out of the CBD most of it is true, we've just got used to it and so will you if you're still here after the first 2-3 years.
ummester wrote:Harp, watch them put the variable up nowhttp://www.news.com.au/business/money/story/0,25479,24147752-14327,00.html
We are seeing a knee jerk reaction from the ANZ. It is also a responce to the government shaking the finger this morining, as shown here.
http://www.news.com.au/business/money/story/0,25479,24147100-5013952,00.html
Nah, won't happen. The AUD has gone below 90c so its all over,the smart money has left because the rates are coming down next month. My guess is that by next June we'll be looking at RBA to drop them to 5-5.5% and the AUD to hang around 75c, maybe 80c if India doesn't follow China and slows down as well. By early next year we could even see a property mini boom, at least in the lower end of the market.
