Forum Replies Created
The only thing jamie and guys like him are teaching the woodduck general public to do is hand over their hard earned cash to some spiv who then fills their head with half truths and flawed ideas.
ASIC need to do more of this and act more quickly when doing so.
if you really want to know how the options market really works then do an ASX or Securities Institute course…somebody who knows what they are talking about will impart real knowledge to you for 1/20th of the price of these “guru” courses that are run for the unwashed masses.
Cheers Nat
There is also a variation where the interest is capitialised for 25 years to create a larger principal amount, which is then paid off in equal payments….the increased payements are then considered to be all principal.
As we have seen there is no way a true interest free home loan is possible…I think the phrase ASIC like to use is “Pie in the Sky”
rgds
NatThey are owned 50% by GE and 50% by Allco
I was looking at some “actual” underwriting criteria today and the wording regarding valuation is very clear and says “the lower of valuation or purchase price”
Understood…have you actually done this or are you quoting a theoretical example??
The reason I ask is that most of the mortgage deals I have seen talk about the lesser of Valuation or purchase price.
Bardy5…..don’t forget we are talking the LOWER of purchase or valuation for calculating LVR.
Brady5 …Most banks (and by law actually) take the price paid as the value ie. they take the lower of the valuation or contract price and use that to calculate the LVR.
Michale Whyte…not all lenders use traditional LMI insurance against their 100% loans….so insurance concentration may not be the problem you think it is.
You can get 100% finance in Australia, either from a bank or one of the specialist lenders. It has been available since the early to mid nineties.
The reason the banks don’t offer it on a broader sense is that with any lend over 80% they typically use LMI (if they don’t use LMI there is a negative impact on their capital usage and therefore profit margin) and the LMI providers have stuggled in the past to insure beyond 95%.
One of the LMI companies does do 100% but they find the demand is actually no that high.
Greg F…I agree..track record is often more important than academic qualifications.
However, if I was going to buy a mobile phone off somebody I would like to think that person has at least made a few phone calls at some point in their life.
Call me old-fashioned if you like
Natalie
Stuart..I agree completely…the govt is so busy making the wrong people jump through hoops that they have missed the real problem areas.
So what are we left with…a situation where you don’t need a licence or even any knowledge to advise mums and dads on investing in something that can be very risky.
Nat
Let me get this right…you run information nights on how to buy cashflow +ive properties in the US but you don’t know how to get a loan in the US or even what the prevailing interest rates are???
Are you licenced by ASIC to give financial advice??
Keep in mind that Wizzard is now owned by GE and at this stage they are measuring the success of the business on loan volumes not profitability …I would jump on it asap.
What is there to know??..nothing has happened in 3 mths …their website has most of the info stripped off it and there has not been one single sane explanation as to how the product works….keep in mind it doesn’t work.
9th of March today…any updates or news???
Does anybody have the full story from this article??
http://theherald.com.au/articles/2005/02/23/1109046979364.html
Gamay…common sense also failed to get an invite to this discussion.
Think more along the popular lines of “I read it on the internet, so it must be true” or try a classic dismissive like “people used to think the earth was flat” or even throw in a cliche misquote like “there is only a market for 3 computors in the world”….then you can easliy start to beleive that interest free home loans work.
Unfortunaltley, all of our good work will probably get deleted in the near future.
Natalie
Gamay…when I pointed that out about 6 weeks ago I was shouted down with replys like “where is the relevance” or “that was for car loans, this is for home loans” or just plain “but this is different”
Unfortunately, logic and rational information (and actual financial markets knowledge) are not welcome guests at a discussion on this topic.
Natalie
March is just around the corner…I guess the Derivex team have been busy thinking up an excuse as to why the March launch will be postponed.
If only they had done a search for “time value of money” on google a few months back, they would have been saved themselves all this embarresment.
Natalie
Turbo B…my view has not changed but I was sick of being deleted so I posted a non commital cliche as a response.
Cheers Nat
I guess delays are inevitable when launching any new product….especailly one that breaks new ground like the Derivex loans.
Natalie
Scottie you have a PM
Nat
