Mortgage stress has halved - only 2% of homeowners behind on repayments - Genworth; Interest rates have virtually disappeared as a source of mortgage stress
Tweet Topic Started: 20 Sep 2014, 12:13 AM (3,085 Views)
Somebody better tell first home buyers all this because they don't appear to be responding in significant number and continue to identify high prices as the number one reason for not attempting to enter.
I guess they better dive in now while interest rates are so low - because they can't get much lower, meaning borrowing money can't get much cheaper and investor-driven price rises will sooner or later nullify all the gains made by low interest rates.
Leftee they are buying, just because you can't see them in the numbers doesn't mean they are not there.
Statistics can hide as much as they reveal.
Any expressed market opinion is my own and is not to be taken as financial advice
[FHB] are buying, just because you can't see them in the numbers doesn't mean they are not there.
Please provide some suggestions as to how we can uncover evidence of this.
The non-ticking of the FHB checkbox on application form theory is a crock of shit - please don't repeat it.
Anecdotes also don't count.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
Leftee they are buying, just because you can't see them in the numbers doesn't mean they are not there.
Statistics can hide as much as they reveal.
There will ALWAYS be somebody buying their first home, we are talking about overall numbers, now being dominated by investors in most markets as first home have now bought their purchases forward over the last five years thanks to all the grants and record low rates we were seeing in 2008-2009, or been priced out of the market through higher prices or lack of a job.
Have you checked your nose in the mirror lately Peter ?
Tell me which is better, somebody who has saved a twenty five percent deposit but who will need to contribute say 40 percent of their income to service the loan or somebody with a ten percent deposit who will need to contribute 30 percent of their income to service the loan?
It depends on future economic conditions. The problem with using serviceability as a yardstick is that it extrapolates the current economic conditions to infinity. Any chump can see that this country's headed for the dustbin for the next decade - ergo the ability to provide a better down-payment should be what banks look for at this stage.
I earn over 200k a year - my ability to service a loan is first rate, hence why the banks are falling over themselves to loan me money.
But fortunately the reason why I earn a lot of money is that I'm not so fucking batshit stupid that I would extrapolate 30 more years of good times to pay off a loan.
Much better to make money selling products to people that *do* think that they have this ability.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
It depends on future economic conditions. The problem with using serviceability as a yardstick is that it extrapolates the current economic conditions to infinity. Any chump can see that this country's headed for the dustbin for the next decade - ergo the ability to provide a better down-payment should be what banks look for at this stage.
I earn over 200k a year - my ability to service a loan is first rate, hence why the banks are falling over themselves to loan me money.
But fortunately the reason why I earn a lot of money is that I'm not so fucking batshit stupid that I would extrapolate 30 more years of good times to pay off a loan.
Much better to make money selling products to people that *do* think that they have this ability.
I earn 240k, I buy houses to stop me from pissing away my cash
Tell me which is better, somebody who has saved a twenty five percent deposit but who will need to contribute say 40 percent of their income to service the loan or somebody with a ten percent deposit who will need to contribute 30 percent of their income to service the loan?
I think the banks answer that pretty clearly. The ones with 10% deposit will get the loan and the ones with 20% will not.
Drgonzo
20 Sep 2014, 03:39 PM
I earn 240k, I buy houses to stop me from pissing away my cash
Yeah. 10 years ago I was in the same position, and it served me fairly well.
The only fly in the ointment was that I was a very time poor and I think I could have done better if I had put more time into due diligence.
On the other hand I look at my ex-colleagues who bought toys on tick who are still out there working harder than ever because their love of toys is eating their cash as fast as they can earn it, even though they are earning three times what I ever did and I think that my mistakes could have been a lot bigger than they were... (and I have learned something from my mistakes, which my ex-colleagues seem not to have...)
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