Choo Choo here comes the MONEY TRAIN.

Discussion in 'Property Market Economics' started by BuyersAgent, 5th Jul, 2019.

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  1. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    I am simply amazed by the changes in this space we have seen in the last 6 weeks since the week after the election. It seems servicing rates are to be cut to a floating 2.5% above existing instead of the current 7% plus.

    How do people think this will impact the wider economy?

    Looking to buy? It just got easier to take out a bigger mortgage
     
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  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    it wont I suspect.

    A train needs a track to run on ...............

    If APRA arent going to provide the track, no lender is going to run their own semi trailer for any length of time or volume since it will give them the gift of concentration risk.

    and then we are back to the 2015 where APRA over reached, late and threw the baby out with the bathwater

    ta

    rolf
     
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  3. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Regulators pushed to go easy on banks

    Does this read like early signals of the rebuilding of a track Rolf?
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I suspect not, because it could be seen as liberal interference.

    Slippery slope of influence ...................... gov and regulators/RBA etc are supposed to be independent and regulators are meant to be immunised against gov pressure arent they.

    ta
    rolf
     
  5. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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  6. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    I think the RBA and the Gov (via the RBA) have put a heap of pressure on APRA and they have folded to a degree
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Ok outcome for owner occupier lending

    So so for portfolio investors

    ta
    rolf
     
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  8. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    yes true Rolf. More about stopping a damaging slide in price than helping investors
     
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