I find it surprising this hasnt been mentioned here yet? Add another .5% with the next RBA meeting interesting times ahead me mateys!!!
where did you get th at information from?
It would be interesting to hear which areas and what price range seem most affected.From the HeraldSun-seems to be mostly low socio economics areas however there were also a few from Kew, Camberwell etc. Either way thats a fair bit-hate to think what its like when interest rates hit 10%!!!!
I've now read the article.
This is probably just the beginning! What about those people who borrowed up to a million to put into super.
the share market has since dropped and they have interest on a loan that's not tax-deductible.
That was the most ridiculous government idea possible!What the papers may not have mentioned is that there are probably 35 repossessions normally. Slight increase, but it's newsworthy and sells papers and gets ratings.
They make it sound like the sky is falling in.
The same thing is happening here, and while there are repossessions in the tens of thousands lately, the actual percentage of homes going through this process is something like 2% over the whole country.
Mind you; the news will be good for the cashed up as there will be some bargains turning up here and there.
Not all repossessions end up with a fire-sale price either; the owner is losing their house, but that doesn't mean there are no other buyers around.
Banks sell the property on the open market, and in a booming market the house gets normal price. I've seen it numerous times; go the the mortgagee auction hoping for a good deal, and the bloody thing goes for market value.
Of course, in a flat market, the houses will sell cheaper, but then nearly all houses sell cheaper in a flat market when the buyers disappear.
The areas worst hit are the new development areas where every one in the street has a new mortgage like Melton, Berwick, Caroline Springs. Imagine the effect on the property value if a lot of houses go up for repossession sale in the one area.
The article also mentioned the banks were trying to get their money before the value of the houses drop.Sixty minutes had an interesting story on it also at http://sixtyminutes.ninemsn.com.au/article.aspx?id=289100
from a national perspective.
Every week across the country, nearly 30 a day are repossessed {sixty minutes aug 2007}Also this might be of interest
Auction slump
http://www.news.com.au/heraldsun/story/0,21985,23266297-661,00.htmlWe will see a lot worse to come if interest rates keep rising as the sixty minutes story was in Aug 2007 and a lot of people have borrowed more than they can pay back due to the rising interest rates and I reckon their 5 year low rate fixed interest rates of the boom times 2001 – 2002 will be expiring right about now and suddenly jumping to over 8.5% p/a.And also a lot of people are selling out before the repossession occurs as they know they are heading for trouble and do not want to be kicked out by the bank. This will not be in the Statistics figures being quoted.
Mortgagee auctions and mortgagee sales seem to be on the rise in New Zealand as well. There is a national website for New Zealand for this purpose. It is called http://www.MortgageeAuctions.co.nz. This website is a valuable asset to Australians who are thinking about purchasing property in New Zealand. http://www.MortgageeAuctions.co.nz is the quickest way to find mortgagee properties in New Zealand.
hello, is there an information source that lists houses that are being sold as a result of people defaulting on their mortgage ? how do you find out about mortgagee properties in australia ?
Hi AJ
About the closest I've found to what you're looking for is:
http://www.nmddata.com.au/index.phpCheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Mortgagee Autions
Having attended many Mortgagee Autions over the past 3 months, It supprises me how people that just cant afford the place can be in this situation. Home ownership comes with alot of resposibilities and costs, not just the repayments. Many go in with the false belief that you cant loose on real estate, well when the shit hits the fan it sticks to the walls. Whats going on when a young couple go in to a morgage broker with $500 bucks in their pocket and $12000 grant and come out with 100% finance or more, sometimes being $250,000 to $350,000. Only my opinion, but the current situation is a sign of peoples "want" exceeding their income and if someone is willing to give them the money they will take it. Just do the math and you can see what you are commiting to. From an investment point of view Im starting to really reconsider propety as an investment. Im not a fan of negative gearing to me its what a real estate agent tells you when they know you are going to loose money on a propety. Buying cheap in a high morgagee sale area, " The place next door was handed in at $200,000 whats that make ours worth, we paid $300,000 3 years ago" Morgagee sales can reflect badly on the other property prices in the same area. Consider this when buying in a high stress low socio-economic area. They days when capital gain was at say 14% and intrest at 6% are well gone. even the bank will give you 8.2% on your money garenteed and no running costs. So why take a punt on property that may stay flat or even drop. The Australian obsession with home ownership needs to be reviewed. I heared on the news that the cost of owning a home in Australia is one of the hightest in the developed world, so much for the lucky country.
Cheers
Tony…………………………..
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