People listen to this bloke?

Not sure how the thread has developed to this... but just read The Problem with House and Land Packages - Barefoot Investor by scott pape. How did he arrive at this conclusion? "
Many whom I met on my travels were 20-year battle-scarred veterans, tough as nails, but underneath it all were caring, kind-hearted, selfless individuals. You’d have to be to do their job.

They told me stories of heartbreak, relationship breakdown, domestic violence, gambling and substance abuse. Many (though certainly not all) of these problems can be linked back to the day the optimistic young couple signed the biggest contract of their lives."

 

He is talking about members of the Financial and Consumer Rights Council. The members relayed the stories of heartbreak. To find out what is behind the stories, you would have to talk to the members of the Financial and Consumer Rights Council.

The issue appears to relate back to this:

We also believe that the Government First Home Owners Grant has benefited developers at the expense eager first home buyers, and has led to a rise in house and land package deals that fail.

The current level of household debt and the rise in insolvencies is quite alarming and is leading to a crisis which is bearing frightening social costs such as suicide, family breakdown, mental and physical illness, not to mention declining confidence in our financial institutions.

We believe that current lending practices have planted a time bomb in the Australian economy, which, when it materializes, will cause significant pain and suffering in many Australian households. The reality is that irresponsible lending is setting borrowers up for failure and there is inadequate financial hardship available to them when that occurs.

The Australian dream is turning into the Australian nightmare for many.

http://www.aph.gov.au/parliamentary...mmittees?url=efpa/banklending/subs/sub021.pdf
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Thanks.

 

Hahaha. I wrote than then found the submission that Financial and Consumer Rights Council made to the Inquiry into Home Loan Lending Practices and Processes.

The submission explains the whole sorry mess. It doesn't mean that house and land packages are bad, but when you mix irresponsible lending, naive first home buyers and house and land packages, it can be a recipe for disaster.

 

Correct. I know someone who's in trouble with OTP now.

 

It depends where and when.
I wouldn't recommend it as a strategy.
But I know people who have made money near Sydney in this cycle.

 

Love to see how time heals Melb and Brisbane apartments.