Let's hurt those evil investors

Discussion in 'Loans & Mortgage Brokers' started by Bayview, 25th Jul, 2015.

Join Australia's most dynamic and respected property investment community
  1. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    So, just went to log on to my online banking, and there was a slogan at the top of the screen saying;

    "Our standard variable rate for investor home loans will increase by 0.27% on August 10, 2015."

    Which Bank, you ask?
     
  2. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    great. reality. check. for. investors.

    you. have. been. warned.
     
  3. Darren A

    Darren A Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    106
    Location:
    Sydney
    Are you one of those MacroBusiness goons?
     
  4. Coota9

    Coota9 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,286
    Location:
    Melbourne
    That's easy...all of them!!!:mad:
     
  5. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    Indeed.

    Your warning is; PLEASE DO NOT MAKE ANY EFFORT TO BETTER YOUR LIFE. RETIRE ON A PENSION AND BE A BURDEN ON SOCIETY'S PURSE STRINGS, AND LET THOSE FHB'S BUY A HOUSE.
     
    Mystery, chylld, MJS1034 and 6 others like this.
  6. DanW

    DanW Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    757
    Location:
    Sydney
    Why isn't there a "dislike" button.. Damn 2015, the old days were better where I could rate things on the internet with 1 star
     
  7. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    It's not rocket science. The RBA has been warning us since they first cut rates early this year.

    http://www.rba.gov.au/media-releases/2015/mr-15-01.html

    "The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market." - Statement by Glenn Stevens: Monetary Policy Decision 03.02.15

    They have warned us, but many have chosen to stick their proverbial head in the proverbial sand.

    They would have wanted to cut rates further, if only the housing dragon wasn't crazy.

    Perhaps in the next RBA rate cut it will be a case of the banks passing it only to owner-occupier loans, and the media won't care, in fact the tabloids will love it.
     
  8. Darren A

    Darren A Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    106
    Location:
    Sydney
    And then owner occupiers might take up the baton and increase real estate prices.
     
    freyja and jaybean like this.
  9. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    I doubt it very much. And if it will help FHBs, Stevens will be happy because he sees it as a social problem.

    "A week after cutting interest rates to historic lows, Reserve Bank governor Glenn Stevens faced a House of Representatives committee on Friday and told them affordable housing has become a 'major' social issue in Australia."

    http://www.smh.com.au/business/rba-...rty-market-20150213-13eakh.html#ixzz3grzXZe4O
     
  10. DanW

    DanW Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    757
    Location:
    Sydney
    I'm getting scared now

    *calling CBA for 15 year fixed rate*
     
  11. beachgurl

    beachgurl Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,318
    Location:
    Sydney
    It still doesn't make sense to me. The majority of people affected are multiple property investors. In my position, I'm positive geared enough that my rental income covers my PPR mortgage. Our portfolio is at around 70pc LVR and we havent borrowed over 80pc for years now.

    Based on today's figures, the entirety of my husband's income is disposable income. Yet we've now hit our serviceability limit with the majority of lenders and tightening further.

    Why are we more of a risk than a double income no kids first home buyer borrowing to their eyeballs and their repayments being the husband's full take home pay, or a first time investor purchasing a property at 90pc LVR in the peak of the Sydney market and having a rental yield of 3pc?
     
    Mystery, spludgey, mcarthur and 4 others like this.
  12. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    8%
     
  13. Steven Ryan

    Steven Ryan Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,656
    What kind of crazy person would fix for 15 years..

    ..oh, wait.

    ...

    @Bayview, don't worry. We're looking good for another cut or two which will basically bring us back to square one.
     
    marty998 likes this.
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    well no.

    generalisations such as this are part of the challenge.

    less than 30 to 40 % of the population doesnt a majority make.

    Targetted and specific action to interfere with global economic trends and improve financial system stability may help, but broad bulldozer policy and guidance provides for many unintended and unexpected outcomes for those at the margins. Improved housing affordability is not one of them..................

    ta
    rolf



    Ta
    rolf
     
  15. Darren A

    Darren A Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    106
    Location:
    Sydney
    @Till Kingdom Come - are you a struggling FHB or a uni student with way too much time on your hands?

    The 8% you are referring to sounds like that's what you hope or expect interest rates to go to so us property investors suffer. I don't mind because I'll just move the money I have made out of property investment in these last few years to make use of the higher interest rates.
     
  16. AndrewTDP

    AndrewTDP Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    764
    Location:
    Newcastle
    Maybe increasing housing supply would be a better approach. But that could be slightly vested interest :D
     
  17. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    4,752
    Location:
    Here!
    This.
     
  18. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,377
    Location:
    Qld
    When we started investing in the 1980s investment loans were always at a higher rate to home loans. And not a measly 27 points - usually at least 1% or 2% higher. That is, if you could actually talk the bank into lending you the money as they had quotas for each type of lending.
    Marg.
     
    Natedog and wylie like this.
  19. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    What makes you think the banks will pass on rate cuts to IPs? They can choose to pass it on to OwnOccs only.
     
  20. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    Well No. I am a property owner myself. ;)

    Ask CBA. The 8% is what they have for IP loans 15y fixed.
     

Price Accounting provide investor + developer tax services world and Australia wide for your property and all tax issues. Contact Paul@PFI below for our new client pack and quoted pricing + client portal access. Trusts, Co and SMSF are our specialty.