Retired before 30 years

Not as good, higher interest rates and not same conditions

 

?
Nope
No difference here, We can all leverage, today.... yesterday

 

You could get a 90%+ LVR mortgage 40 years ago? I didn't think that was possible. But then again, I wasn't around then, so you might know this better than me.

 

We bought our first house 40 years ago:

1. 60% deposit.
2. Bank would only lend us 20%.
   
3. Loan had to be a Personal Loan (no housing loan for us) at higher rates.
4. I had a secure, full-time job in IT on good money.
5. The wife had a secure, full-time job in retail but she was of “child-bearing age”. Hence, not taken into account.
6. We were forced to borrow the remaining 20% from my parents but they required a loan agreement (drawn up at our cost).

It certainly wasn’t easy .

In the last 20 years, we have never had to borrow under such tough requirements, never ever.

Many times we have borrowed 100%+ of purchase (zero deposit), always qualified for housing loans, all income included (including wife), never again had to borrow from the Bank of M+D, ...

Certainly a lot easier ...

 

Finance is always a hurdle.

Sometimes banks set the hurdle higher than at other times.

 

Not when low doc/no doc was available, at competitive rates. Long gone

 

You have no idea how untrue that is:

 

APRA has made life for investors much harder today

Just have to read posts on this, a tough gig today. Most will hit the wall after 3/4 properties today

 

Calling mortgage brokers........

 

and what did the house cost? $35?

 

Me.....80%
Not sure when 90% was introduced, perhaps MB could advise on this and comparisons

I started investing from 2001, finance a piece of cake due to low/no doc
Today I need to jump hoops

 

Now you are being completely silly!!!!

If it was that price, I would have skipped a bottle of shiraz for lunch and paid cash for it .

 

very funny
Maybe in US????? Oops that is $35,000

 

Harder today than when?
I reckon if I started RE investing today as a 20-30yo I would have double in 30 yrs than I would've made previous 30.
Even I remember times when people had to almost beg to get loans.
They put on their nicest suit and tried to make a great impression. Even those hat had a bit of wealth.
I remember a new local bank manager saying things like "There's no houses worth that much in that area" when pledging a ppor as collateral. And that was it, no loan from that bank.
You had to cultivate "relationships" with the bank managers, which mostly meant kissing rear end.
If they did'nt like the look of you, no loan.
Then there were the bank xmas parties for customers...they kinda ended when I started but went to a few with other people.

 

The golden age of lending was probably for a few years preceding the GFC, I was unfortunately just a little bit too late to the party. If I'd skipped uni (and traveling) I'd be much better off financially than I am now (I basically invested as soon as I had a reliable salary), but it's certainly not something I regret.

Right now isn't the perfect time to be in property investing, but it's still pretty bloody good, when looking back historically.

 

No such thing as perfect time. And if it's "bloody good" it's about as close to perfect as you want.

 

I don't know, I have a lot of older family/friends who basically fell into money from property. They didn't make a brilliant calculated investment, they just bought a ppor and maybe a holiday house

 

From 2001
Mentioned in my previous post

 

Dem were the golden years for sure

 

I have finished the Rethink Property Investing book. I thought it was great - very informative. It goes through considerations in depth and sets out case studies/ the numbers. Certainly worth a read for someone thinking of one day investing in commercial property.