Why don't the Commonwealth bank cut to the chase and buy the houses, after all they got all the money. Why lend the money to the small fry.
??
Inconvenient questions??
Peter
The bank isn't in the house business, they are in the dumbfuck business.
------------------------------ " ... which is that all-too-familiar dynamic in Irish life where people tell lies, cover them up and create all sorts of collateral damage, sometimes spread out over decades, and never take responsibility." - Alan Glynn
Yes, and the investor does it at a loss because negative gearing is good, right??
Right?
Peter
The banks do not lend at a loss.
Yes , they told everybody it was good, good for those that get in early on the ponzi, but not so good for those who enter the ponzi too late.
Negative gearing is THE very reason why our prices are at bubble levels the US did not even get too. And the very reason it further destroys the economy going forward, shown clearly with both our adult and youth unemployment now higher than the US or UK and perhaps the euro too.
Negative gearing , one of the greatest ponzi pumping measures ever created, yet not used in these other countries.
If you bought a property 7 or so years ago on an interest only loan you are really feeling the heat right now. Before long you are going to be looking at trying to refinance, if you can? or make a much bigger repayment that the rental price won't come anywhere near covering. If your smart you'll sell up now and get off the treadmill, beat the rush. It's pretty obvious IP's are not what they were hyped up to be. The whole thing was just one big swindle IMHO, one where the only winners were the banks and the RE industry that were all feeding at the trough. " Don't worry, the property value and rent will have doubled in 7 years and you will be on easy street" Utter crap!
Yes , they told everybody it was good, good for those that get in early on the ponzi, but not so good for those who enter the ponzi too late.
Negative gearing is THE very reason why our prices are at bubble levels the US did not even get too. And the very reason it further destroys the economy going forward, shown clearly with both our adult and youth unemployment now higher than the US or UK and perhaps the euro too.
Negative gearing , one of the greatest ponzi pumping measures ever created, yet not used in these other countries.
What could possibly go wrong here.....
Yes, like prescribing smoking cigarettes to someone with asthma, don't laugh, it was a treatment.
So lets just look at it.
The monkey buys a house, gets no net profit from the house, the house cost them money continuously to maintain, pay insurance, rates, taxes and all other costs.
With the eternal promise that the price of houses always goes up.
Sounds dangerously like certain promises made in religions.
Be good believe in our god and you will be rewarded in heaven.
Hmmmmmmm
Why does all this have to happen in the future.
Never now??
Why does the donkey get the promise of a carrot and never gets the carrot??
30 years ago mom and dad sold our only house 154 Preston Point road East Fremantle Western Australia, there is a new house on that site now and the capital was put into a small business.
That left us 2 small farms. and 2 old rundown bush hotels.
Notice no money drains, all assets where cash-flow positive.
That policy is still in play today.
All assets create a positive cash-flow.
Unfortunately we have accumulated about 9 "houses", these cost me money every day of the week.
Notice i do not count them as assets??
Two of them costs me $2,000 per week each in lost opportunity cost and other costs.
Man what a business plan that is.
I have about $8m stuck in houses.
Return = minus $400,000 per year if i just use the interest rate cost of 4.99% and a small amount for other expenses.
nooooooooooooooo
Anyway happy wife, happy life.
You know how many Thai ladies that could afford me? It makes my eyes water just thinking about it.
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