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The Perth Property Crash Thread; Let us enjoy the inevitable collapse as it unfolds in WA
Topic Started: 13 Aug 2014, 12:28 AM (89,654 Views)
peter fraser
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newjez
15 Aug 2014, 01:12 AM
I know people, many people where the computer said no.
I keep punching in that data to my computer and I keep getting the word "horseshit"

Maybe it's a new virus.
Any expressed market opinion is my own and is not to be taken as financial advice
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Mike
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Jimbo
15 Aug 2014, 12:46 AM
Spare me the sob story. You don't need equity to trade up. You just have to be able to prove that you can make the repayments on the larger loan. I have been there and done it. Whether your equity position is positive or negative, the lender will allow you to transfer that position to a different property.

Negative equity is no big deal unless you are trying to get out of the market altogether.

Tell me now how deflation is bad for consumers?
Another comment which proves how little you know.

You are really full of shit. Do you just make things up as you go along, sounds like it.

http://mike-globaleconomy.blogspot.com.au/
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Jimbo
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newjez
15 Aug 2014, 01:12 AM
I know people, many people where the computer said no.
Well, they were a risk anyway.

It wasn't that prices fell and left them in negative equity.

Apply a bit of logic here. If you are in negative equity and you want to move to a property of equal value, where is the risk for the lender?

People who cry "negative equity trap" are trapped because they are in the shit financially and the lender knows it. The only chance the lender has of getting their money back is to enforce the mortgage to its conclusion and take possession.

It is not a price drop that caused the problem. It will be a drop in wages or careless spending.



Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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peter fraser
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Jimbo
15 Aug 2014, 01:08 AM
Very simple. You go to your lender who you owe (say) 400k to and tell them that you want to buy a 600k property. Your existing property is worth 350k so you need an additional 200k to buy the 600k property. They check your finances, see you are good for it and you buy and sell just like you normally would. They are not going to turn you down because they will be charging valuation fees and you will have a larger mortgage. Just like if you had traded up with positive equity.

The negative equity trap is a pile of bollocks (unless you are trying to leave the market altogether).
That may have worked in the UK or the USA but it won't fly here.
Any expressed market opinion is my own and is not to be taken as financial advice
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Mike
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peter fraser
15 Aug 2014, 01:18 AM
I keep punching in that data to my computer and I keep getting the word "horseshit"

Maybe it's a new virus.
It is called Jimbo = Dumbo virus.

He's full of crap, the banks are so hard and fical with everything these days they would never accept this from most borrowers.

I have recently just completed my Diploma in Finance and am commencing my 2 year mentor program so I can one day open my own Finance business. No where have I see what Jimbo is talking about, either he is very confused or cannot explain it well.
http://mike-globaleconomy.blogspot.com.au/
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Jimbo
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Mike
15 Aug 2014, 01:22 AM
Another comment which proves how little you know.

You are really full of shit. Do you just make things up as you go along, sounds like it.
Please tell me Mike, why a lender wouldn't allow me to trade up with a negative equity asset when I could easily afford it.

Also, bear in mind that I have actually done this.

Go on Mike, explain why it is not possible to do something that I and millions of others have done, give me an example.

Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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peter fraser
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Jimbo
15 Aug 2014, 01:27 AM
Please tell me Mike, why a lender wouldn't allow me to trade up with a negative equity asset when I could easily afford it.

Also, bear in mind that I have actually done this.

Go on Mike, explain why it is not possible to do something that I and millions of others have done, give me an example.
Maybe you have elsewhere Jimbo but I repeat it won't and can't fly here - your idea will cost you badly.
Any expressed market opinion is my own and is not to be taken as financial advice
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Jimbo
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peter fraser
15 Aug 2014, 01:26 AM
That may have worked in the UK or the USA but it won't fly here.
Explain why?

Don't just tell me it won't work. They will tell you that in the USA and the UK as well, but there is no law saying that you can't do it.

If you are 100k in neg equity on a 400k property, you remain 100k in neg equity if you trade up to a 600k property. No additional risk for the lender. They may even benefit because you might need to move for work reasons.

That is one of the Bull scare story myths. If prices go down, you are in negative equity. You can't move house. You are trapped.

utter complete total wanking bullshit.



Mike
15 Aug 2014, 01:27 AM
It is called Jimbo = Dumbo virus.

He's full of crap, the banks are so hard and fical with everything these days they would never accept this from most borrowers.

I have recently just completed my Diploma in Finance and am commencing my 2 year mentor program so I can one day open my own Finance business. No where have I see what Jimbo is talking about, either he is very confused or cannot explain it well.
How many houses have you bought and sold?

How many jobs have you had?

You've got a fucking diploma and you know everything already.

Give me an example where someone has been turned down for a move where they have been in negative equity.

Just one will do.


Edited by Jimbo, 15 Aug 2014, 01:37 AM.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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peter fraser
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Jimbo
15 Aug 2014, 01:33 AM
Explain why?

Don't just tell me it won't work. They will tell you that in the USA and the UK as well, but there is no law saying that you can't do it.

If you are 100k in neg equity on a 400k property, you remain 100k in neg equity if you trade up to a 600k property. No additional risk for the lender. They may even benefit because you might need to move for work reasons.

That is one of the Bull scare story myths. If prices go down, you are in negative equity. You can't move house. You are trapped.

utter complete total wanking bullshit.

I wouldn't know where to begin with the explanation you seek.

I want to go to bed, I just don't have time to start an explanation of basic investing rules from scratch.

Please don't try this for your own sake.

Good-night.
Any expressed market opinion is my own and is not to be taken as financial advice
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Jimbo
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peter fraser
15 Aug 2014, 01:29 AM
Maybe you have elsewhere Jimbo but I repeat it won't and can't fly here - your idea will cost you badly.
What idea?

I am not planning on being in negative equity? You started this by stating that poor old homeowners (who you care so much about) would be trapped in negative equity if house prices fell.

I stated that you were wrong and gave an example from my own experience to dispel the negative equity myth.

Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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