I guess if we all met face to face & discussed exactly how investing has made one $$$. This could be proved by establishing who has titles ..& it's fully paid off.
But hey on the Internet ..anyone can say what the hell they like.
Perth in the toilet?...not entirely accurate.
Keep dreaming.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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.
Properties bought and sold, I would have to go back and count them all. Do you mean houses/units as I mostly build developments of multiple dwellings. Quick guess would be over 30 bought/built and sold.
Jobs, 4 plus im in business for myself.
I currently have 13 properties in my portfolio
I have at present roughly $3 million in construction/developments underway at present. One only started a few weeks ago so it is most interesting.
Your the one saying it is such a wonderful idea and you have done it, so explain to all us in detail how you did it. Be very detailed.
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.
I really do need the sleep but here goes.
I'm not wrong, I do know a little about this stuff. The mortgage insurer will beat you. All loans over 80% are insured and usually above 90% it's the insurers call not the banks. At the moment it's very hard to get decent 95% deals done and anything above 97% is just not going to happen. Nada.
In the UK and in the USA they had 120% LVR loans, so maybe you were lucky enough to get one of those when you needed it because your payment record was good, but it just wouldn't happen now.
A negative equity loan simply is outside the lending policy of all of the banks and all mortgage insurers. I'm not sure how to explain policy - it is what it is. You can download the Genworth policy from here - http://www.genworth.com.au/underwriting-policy
Check it for yourself. It should all be there. QBE is almost identical, it should be on the net somewhere - it's not a secret, it's all available for people to read.
sleeptime.
Cheers
Any expressed market opinion is my own and is not to be taken as financial advice
Properties bought and sold, I would have to go back and count them all. Do you mean houses/units as I mostly build developments of multiple dwellings. Quick guess would be over 30 bought/built and sold.
Jobs, 4 plus im in business for myself.
I currently have 13 properties in my portfolio
I have at present roughly $3 million in construction/developments underway at present. One only started a few weeks ago so it is most interesting.
Your the one saying it is such a wonderful idea and you have done it, so explain to all us in detail how you did it. Be very detailed.
Hopefully the biggest sore loser called NF ..I'm sure you are aware of him Mike is not reading this..he's gonna get jealous..
I don't like to disclose what & how many props I have & own ..especially on an Internet forum...it's a small world out there, especially Perth.
Big no no.
But you can do what you like.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
I keep punching in that data to my computer and I keep getting the word "horseshit"
Maybe it's a new virus.
Good for the roses though.
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.
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.
My cousin was. That was leaving yourself wide open. It may be possible in exceptional circumstances, but the bank manager will have to ask, if you're doing so well, then why are you doing so badly? Pretty hard to answer that. I can only assume you were the rare instance that achieved this, as winning this argument gains you no favours.
Good for the roses though. My cousin was. That was leaving yourself wide open. It may be possible in exceptional circumstances, but the bank manager will have to ask, if you're doing so well, then why are you doing so badly? Pretty hard to answer that. I can only assume you were the rare instance that achieved this, as winning this argument gains you no favours.
You are missing the point. If you buy at house at 80% LVR and the value of the house drops in a market slump, placing you into negative equity, the loan could become (say) 110% LVR.
If you need to move house (say for work), and you are buying a house of the same value, the loan ratio stays the same. All the bank and insurer are doing is transferring exactly the same loan conditions to a different property.
I will not be doing badly with my finances? I will be in negative equity only because house prices have fallen across the board.
The risk for the bank and insurer is exactly the same whether I stay in my existing property or transfer my loan to a different property.
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.
Properties bought and sold, I would have to go back and count them all. Do you mean houses/units as I mostly build developments of multiple dwellings. Quick guess would be over 30 bought/built and sold.
Jobs, 4 plus im in business for myself.
I currently have 13 properties in my portfolio
I have at present roughly $3 million in construction/developments underway at present. One only started a few weeks ago so it is most interesting.
Your the one saying it is such a wonderful idea and you have done it, so explain to all us in detail how you did it. Be very detailed.
Thirteen properties . How long have you been investing there ?
Do you try and stick with a certain level of leverage, if so , what is this ?
Are you not concerned with the economic downturn being experienced there at the moment , and how it may effect future price growth or rental returns ? Or that prices may see decline from the slowdown being experienced ?
I have at present roughly $3 million in construction/developments underway at present. One only started a few weeks ago so it is most interesting.
Your the one saying it is such a wonderful idea and you have done it, so explain to all us in detail how you did it. Be very detailed.
That's great, you have a lot of eggs in one basket though?
As for the negative equity thing, it is incredibly simple and I am surprised that you people can't see it.
Say you buy a house for 500k at 80% LVR (borrow 400k). Your equity (deposit) is 100k.
House prices drop 30% making your house worth 350k placing you in negative equity to the tune of 50k.
You need to move house (maybe for work). All other houses in the market have slumped by 30%.
The house you want to move into costs 350k (same as your existing property).
The bank and insurer are taking no additional risk by allowing you to move. You still have a mortgage for 400k and although it is a negative equity loan, it is exactly the same as if you had stayed in your existing home.
The whole point of this discussion was to illustrate that negative equity is not really a big deal for an owner occupier. Price rises and falls are not a big deal for an owner occupier. Owner occupiers do not make money if their house goes up in value and they don't lose if it falls. The only time owner occupiers can win or lose is when they transact property and maybe pay too much or sell for too little.
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.
That's great, you have a lot of eggs in one basket though?
As for the negative equity thing, it is incredibly simple and I am surprised that you people can't see it.
Say you buy a house for 500k at 80% LVR (borrow 400k). Your equity (deposit) is 100k.
House prices drop 30% making your house worth 350k placing you in negative equity to the tune of 50k.
You need to move house (maybe for work). All other houses in the market have slumped by 30%.
The house you want to move into costs 350k (same as your existing property).
The bank and insurer are taking no additional risk by allowing you to move. You still have a mortgage for 400k and although it is a negative equity loan, it is exactly the same as if you had stayed in your existing home.
The whole point of this discussion was to illustrate that negative equity is not really a big deal for an owner occupier. Price rises and falls are not a big deal for an owner occupier. Owner occupiers do not make money if their house goes up in value and they don't lose if it falls. The only time owner occupiers can win or lose is when they transact property and maybe pay too much or sell for too little.
No Jimbo negative equity is an issue for anyone who owns a house and wants to sell and buy elsewhere.
Of course they can simply sit and make their repayments, that will be fine. If the have other property they may be able to absorb the equity loss using a second security, but for the average family with just one house and not a lot in cash savings, they simply don't have the options that you suggest.
It's a good story, but it's simply wrong. You could always phone a couple of brokers or banks and ask them. Please try to talk to people who have experience - I get told incorrect policies by banks quite often. Not many well trained staff on the ground these days.
Any expressed market opinion is my own and is not to be taken as financial advice
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