Lost MILLIONS of dollars in property ... and still smiling

Discussion in 'Property Information Resources & Tools' started by MTR, 27th Jan, 2016.

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  1. Kate Moloney

    Kate Moloney Well-Known Member

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    Very interesting. Their property market is a pure example of banking that's out of control.

    Economically we are in very interesting times, both globally and nationally.
     
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  2. Kate Moloney

    Kate Moloney Well-Known Member

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    Quite an eye opener and you on some level it's happening here too, which is why ASIC and APRA are stepping in.

    When times are good people and institutions get greedy, reckless and cocky (I was greedy and cocky too) ... It can be a superficial world when you make your life entirely about the money. There has got to be a better way and once this over, that will be the next journey ...
     
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  3. Kate Moloney

    Kate Moloney Well-Known Member

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    Thank you @BigKahuna your right, the truth hurts at times. And it's best to get truthful about yourself first. Often people are quick to point the finger and blame, it's not the answer. Reviewing ones actions truthfully, at first, is the key, and then lifting the lid so others can learn too.

    Attacking, blaming, getting angry gets no one anywhere.

    I'll email you the link for the book ....
     
  4. WattleIdo

    WattleIdo midas touch

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    I'm sure there will be glowing reviews!
     
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  5. DaveM

    DaveM Well-Known Member

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    Just to clarify this... non recourse loans are a minority in the US and only 11 states have non recourse lending agreements, the remainder are full recourse legislated. :)
     
  6. MTR

    MTR Well-Known Member

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    Thanks Dave
    I think Atlanta is one of these states.

    MTR:)
     
  7. wylie

    wylie Moderator Staff Member

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    I get what you mean. I thought Kate was meaning the bank was at fault for "where" she bought.

    It is only by good luck that we've bought in places that have not suffered a huge downturn.
     
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  8. 158

    158 Well-Known Member

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    You mean Georgia?

    Atlanta is a city.

    pinkboy
     
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  9. MTR

    MTR Well-Known Member

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    Hi Wylie
    I have not read the book, just my assumption? But there could be more to it, I think gurus recommending areas etc etc. There are a couple of threads on this.

    I think like everything in life there is an element of luck that comes into play.

    MTR:)
     
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  10. Kate Moloney

    Kate Moloney Well-Known Member

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    X
    Its not for everyone.
     
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  11. Kate Moloney

    Kate Moloney Well-Known Member

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    Glad you now know what I mean. I take responsibility for that fact that I got myself into this situation, whilst acknowledging that there were other parties that assisted with the transaction. So rather than blaming and playing victim, I think its important that all parties involved put their heads together and find solutions ..... and most importantly we all learn from our actions so it is less likely to happen again in the future.
     
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  12. mrdobalina

    mrdobalina Well-Known Member

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    If one person learns from your story, then it will be worth it. I'll be looking forward to reading your book. Thank you for sharing it.
     
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  13. Marg4000

    Marg4000 Well-Known Member

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    Friends nearly got sucked in by Storm Financial. Fortunately they gave the projected figures to my daughter who is an accountant. She advised them to steer clear as she felt the figures were unsustainable in the long run. A case of "if it sounds too good to be true......."

    I guess being older means I have seen most things before.

    Mining town booms and busts are not new, and this time around will not be the last. Anyone else remember the Mt Isa strike, or the Poseidon share bubble?
    Marg
     
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  14. DaveM

    DaveM Well-Known Member

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    Georgia is not a non recourse loan state, and neither is Texas
     
  15. MTR

    MTR Well-Known Member

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    I know someone who just purchased 20 townhouses in Atlanta using a non recourse loan, this loan was set up in Georgia.

    Strange, don't get this??
     
  16. DaveM

    DaveM Well-Known Member

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  17. MTR

    MTR Well-Known Member

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  18. kierank

    kierank Well-Known Member

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    Obviously, I have a different perspective to some. Let me explain.

    When I go to a hire shop (say, car hire), I can hire their product (their car), follow a plan (my itinerary) and, hopefully, achieve what I want to achieve. I can basically keep their car as long as I like as long as I have their approval and I keep playing their hire fees. It is the car hire shop's responsibility to ensure that the car is in good order.

    Sometimes, things go wrong (eg I crash their car and I might even think that it is not my fault) but the hire car company is not responsible. At the end of the hire period, they are expecting their product to be returned in the same good order. If I don't, then it is going to cost me.

    Banks are in the business of 'hiring out' cash and their hire fees is the interest they charge. When you go to a bank, you are hiring their cash, you follow your plan and, hopefully, you achieve what you want to achieve. You can basically keep their cash as long as you like as long as you have their approval and you keep playing their hire fees. It is the bank responsibility to ensure that the cash is in good order.

    Sometimes, things go wrong (eg you 'burn' their cash and you might even think that it is not your fault) but the bank is not responsible. At the end of the hire/loan period, they are expecting their product (their cash) to be returned in the same good order. If you don't, then it is going to cost you.

    That is how I see it.
     
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  19. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I know of people who got lending for large sums in mining towns when they didn't have a job. The rent covered the payments, loan approved. There is a level of responsibility that the banks have to shoulder.
     
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  20. kierank

    kierank Well-Known Member

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    I am looking to buy another property this year but I don't have a job. I am retired.

    I am looking for the banks to approve me a rather large loan as I believe I can service it.

    I will be more than annoyed if the nanny state has come this far.
     
    Last edited: 30th Jan, 2016
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