Property Club investors stung with 45 pc mortgage repayment increases

Discussion in 'Property Market Economics' started by ollidrac nosaj, 8th Jan, 2018.

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  1. sash

    sash Well-Known Member

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    There are quite a few who jumped in without their togs...all they wanted to hear..is its all apples...not "The Emperor has no Clothes".....

    The place I see being hammered is Sydney because the APRA rules will not support loans at the prices which were achieved previously that means prices can only head one way and it is down. Some interesting comments recently that if you have un-accessed equity you will be okay....that in itself displays the ignorance around.

    Not a good idea if you have sell assets at firesale prices...to free-up equity.

     
    Last edited: 8th Jan, 2018
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  2. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    Thats a nice and common sense response to the statement, my first response was choking on my coffee followed by WTF! :eek:
     
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  3. Silverson

    Silverson Well-Known Member

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    Crazy talk, interest rates will be low forever, io terms will be favourable forever and credit will be loose forever. Oh and Bentleys/flash cars are way cooler than debt reduction/buffer.
     
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Well to be fair, that was my first emotional response too............

    I have been trained for solution orientation, vs the "quote here" of KY's hope and pray advice........... though maybe his advice is more sound for many of his members - he would know better

    ta
    rolf
     
    Last edited: 8th Jan, 2018
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  5. SatayKing

    SatayKing Well-Known Member

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    I assume his "members" would prefer to hear that than "We're all screwed, I tell ya!"

    @sash some champers. A farewell to someone who was 94 and, the last time I spoke with them, sounded as if they had had enough and were fed up. All good.

    Being beat up? Words. Nothing more.
     
  6. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    Redirect Notice
    [​IMG]

    "I WILL NEVER GO BROKE, I OWN PROPERTY!" (Lyrics from Ziplock)

    words of wisdom from the one and only MC ICE T
     
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  7. sash

    sash Well-Known Member

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    Sorry about your friend.

    Onwards and upwards....
     
  8. BST

    BST Member

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    Hi @Silverson. Just curious as to the reasons you are bullish on Australian property as an asset class in the mid to long term?
     
  9. datto

    datto Well-Known Member

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    Wonder what he effect on he economy will be when more and more property investors go under and off load their bundle? Could be the big R.....that won't be good for anybody I don't think.
     
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  10. Noobieboy

    Noobieboy Well-Known Member

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    Doubt it. I think it will be more of someone’s loss is someone’s gain. Plenty of demand to soak up distressed investors inventory.
     
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  11. Lawrence Mayne

    Lawrence Mayne Member

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    Yeah, over capitalised inner city places like Enfield adelaide, Darwin, some places in Brisbane, sydney Perth etc. Kevin Young has a large position in the gold coast or Brisbane.. One of the two. He has a youtube channel, they put the hard sell on me. But their numbers didn't stack up for me... So I said nah catch ya later.
     
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  12. hammer

    hammer Well-Known Member

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    That RIGHT! I remember these guys! They were bussing people in to purchase the leftover Darwin CBD High rise! They had to bus people in because none of us locals would touch them with a barge pole....

    500k for a 350k property with 10k body corp per year and now a P and I loan....

    [​IMG]
     
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  13. au contraire

    au contraire Well-Known Member

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    Oh dear. RIP to those wanting to sell down to claw back a buffer.

    Hammer care to share which lenders they were using to finance these deals?
     
  14. hammer

    hammer Well-Known Member

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    I'm not sure on the lenders. Just going on an article in the newspaper..

    Not hard to put 2 and 2 together.

    This is the building they were buying into.
    12 Harvey Street, Darwin NT 0800 - Apartment For Sale - 2013664746

    Looking at the add I reckon they would have got some discounts so say 450k for a 2br and 370-400k for a 1br....That's still way overpriced and a recipe for pain.

    Seen it a lot over the past couple of years up here... :(
     
  15. au contraire

    au contraire Well-Known Member

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    Hang on a sec that article is from late 2017!!

    How is Darwin in a downturn but these places “Sitting proudly on the ever so close outskirts” are far more expensive than inner melbourne!!? (which also has substantially lower Body Corp fees...currently)
     
  16. hammer

    hammer Well-Known Member

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    They're not. At least not anymore. That's kinda the problem....

    Real world sales for new and shinys is 3-350k for a 2br. Low 200s for an old do-er-upperer

    Buy them for 450k and its going to end in tears. (In 2014 people were buying them for 580k! Yikes!)

    the body corps for high rise here are killer too usually round 3k per quarter....often more when you cover the entire building in luminous blue lights...

    The poor people weren't buying investments, they were buying money pits. :(
     
  17. Fargo

    Fargo Well-Known Member

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    After I went to one of their meetings in about 2008, they gave me a crappy little form to list assets and liability and assess borrowing capacity, than told me I could borrow a ridiculous amount I knew I couldn't pay back , Equivalent of all my equity. Then presented me with overpriced new build houses on large estates, newly developed in Cranbourne , Carrum Downs and Queensland. A quick search on realestate.com showed they where overpriced and that was the end of that. They gave a very poor basic amateur sales pitch, on the benefits of realestate, which I now think may have been designed to dissuade switched on investors, so they would be left to deal with naïve gullible people.
     
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  18. datto

    datto Well-Known Member

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    Oooh......I hope they won't be catching a falling knife.
     
  19. Silverson

    Silverson Well-Known Member

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    Hi mate hope your well,
    My reasons for being bullish on Australian property are long and many but in short, we are a great country, with great schools, health, employment, living conditions, lifestyle, a country so ethnically diverse where many people from all corners of the globe share culture and traditions, we are geographically positioned in a position where we can avoid conflict, even though most of our politicians are clowns without the facepaint we are still a politically stable country. A young country, small but growing population, great food, water, etc. Australia is an extremely desirable location, many want to call this home and I cannot see this changing anytime soon, if anything I can see this increasing.
    Also historically property prices increase over time, sure there are ups and downs along the way however I think we are on an upward trajectory long term.
    In short it's a great place where more people want to come to than leave, this comes at a cost! Sure there will be economic factors at play but i can't see it getting cheaper to live in a desirable location.

    Apologies for the scattered answer, I'm exhausted and squinting at the screen as I type this haha!
     
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  20. Ted Varrick

    Ted Varrick Well-Known Member

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    Except to vehicle enthusiasts, as perhaps a number of classic cars will become a lot cheaper, vis a vis

    1969 HOLDEN MONARO HT GTS 350

    and

    1971 HOLDEN MONARO HQ

    or maybe everybody will be govt mandated to drive Yaris's...
     
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