Banking Royal Commission results

yes, in 1981 I was not able to get a bank loan for a PPOR. Not because I had 40% deposit, not because of serviceability but because I was female. I did get a loan to buy that first property but had to borrow from outside the banking system at a higher interest rate. Bugged me then and still bugs me now when ever I hear people talk about the good old boring days.

 

About 23 years ago ,or just place a one day low ball offer tonight for Monday by Friday you will either be ahead by 8% or thinking w t f h..

""imho""

https://www.commbank.com.au/content...ash-items-and-1H19-financial-comparatives.pdf

 

Gold.

 

If anyone know this sooner they can be very rich short or long banks based on this sneak peak and that why they release after the market close so people can digest the information over night and begin the next trading day with level playing field.

else the machines and the professional have all the extra tools and time during trading hours and they have an upper hand.

 

Haha saw this too. Hayne is stone cold. Frydenburg looks like an embarrassed chugger.

 

Geez, you had it easy .

In 1981, we were buying our first PPOR in Brisbane for $54,000.

We had a 60% ($32,000) deposit, I had a good, permanent, full time job in IT, the wife had a good, permanent, full time job in retail BUT no bank would lend us $22,000 (the other 40%).

I don’t really remember all the reasons but one was they didn’t count the wife’s income because she was of child-bearing age .

In the end, one bank lent us $11,000 (20%) as a personal loan (higher interest rate) and we had to borrow the other $11,000 from the Bank of (my) Mum and Dad.

These days, I have a good old laugh when people try to tell me how hard it is to get a loan today . They have no idea what hard means!!!

 

That's pretty rough from the banks, but definitely explains why houses got so expensive with all that easy credit later on. What was your yearly salary back in 1981 if you don't mind sharing?

 

Good on him - refusing to play up to the cameras and do fake smiles and handshakes.

It wouldn’t fit with the idea of an independent report (that really should not have been a photo opportunity - given the topic).

Imagine being one of the farmers, whose loans got called in unfairly and lost their land, seeing the report being handed over with a big, happy grin!

 

It's not difficult to see that APRA was intimately the trigger for the housing downturn.

Hayne sent a clear message to markets all over the world on Friday afternoon. He'll be the trigger for our next recession.

 

Yep, that was the reason. I was child bearing age. I borrowed from the mother of a friend. 5 years ago my single daughter borrowed 70% from a big 4 to buy an apartment in Sydney. I was so pleased how far we had come from those days

 

Haha. In 1973 (46 years ago), I can remember my grandfather warning me that I would NEVER be able to afford to buy a home as they were SO unaffordable. I was in my last year st school, at the ripe old age of 17.

Unaffordable housing is NOT a recent phenomenon .

I can’t remember what it was in 1981; that is nearly 40 years ago .

I started work in 1977 and I know my starting salary was $9,000 pa.

So, as a guess, I would think my salary would have been between $9,000 and $10,000 .

 

So the house was about 4 times annual income. Not too bad, considering now it is circa 6 times. Which means properties are a little more unaffordable.

 

When you explain to people these days where I started in nov 1983 before I meet my wife ,most can't get their head around how hard it was and the amount of total control Bank Managers had..
Took me 9months to get the first loan ,was told just come back in three months went back 3 times on the final time I asked why? and is their another way..There was and the company was custom credit maybe 2% above the banks rate and that company was chain linked too the bank and above 18% I still think they just did not like blue collar workers with red hair who only went to a public school and passed grade 10 and straight into 3 years at Yeronga Tafe and did not know how to dress too well..
Looking back now I made 62k on the property over 4 years big money back then maybe three houses in logan ,then just kept buying and selling and buying into bank shares ..Then plan was every cent I paid in interest to those banks I wanted back because either way you play the crying game back then you would not never take on the banks and if you cant beat them then invest in them those investments with the help of the drp's went to levels that I thought was never possible even with RC ..Now days with social media it's out there for everyone to see and a total different world other then with social media it's out there forever..

 

Still, home ownership rates have fallen consistently since 1981

 

Deck all i'm trying to say is and illustrate the constrains that were around back then for investors ppor holders ,plus I worked seven days week while most of my mates would be weekend warriors and **** and smoke it up against the hotel wall in different nightclubs and now all are on the government's sit down money pay-list ..My only advice is Deck think outside THE BOX set a plan make sure your insurances are up to date ,and ignore all advice from financial planners ..they have no more chance of getting it right then you do..

 

On my calculator, $54,000 / $9,000 => 6 times

I am not sure how you got 4 times

Using your metric, properties were just as unaffordable back then .

Our deposit was was nearly 4 times my salary ($32,000 / $9,000 => 3.6)

 

So have Delayed Gratification rates

 

Nooooo. My whole world vision is upsided downsided now. Why would you do this to my entitled self? Just when I was about to enjoy my morning avocado

Good to see somethings don’t change that much. I’m sure people were complaining as much then as we do today

 

My ppor is fully paid, and I have no debts, I m fine ;-)

I am just thinking that winding the debt clock a bit would not be a bad thing, this easier banking as only increased house prices (when at the same time lots have shrink, nail guns and cheap imported plasterboard, appliance, synthetic stone have sped up building)

 

For 40+ years, I have always thought property was unaffordable .

But I followed the wise words of Hannibal Barca:

“I will either find a way or make one”.​

It has stood me in good stead.

Like in those ancient times, not everyone has the same philosophy as Hannibal .