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Desperate FHBs with no deposit are taking out "parent assist" loans to get onto the property ladder; Lender BlueBay rolled out “parent assist” loans last year, allowing buyers to borrow 20% deposit from parents
Topic Started: 29 Jun 2015, 10:11 AM (5,304 Views)
ThePauk
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Veritas
29 Jun 2015, 01:38 PM
Inter generational mortgages.

that's what's next.
Already there I suppose if the parents are 'in on the kids loans' now.....

This could all end up very bad indeed....
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Shadow
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ThePauk
29 Jun 2015, 01:35 PM
Nothing that requires a loan to be taken, is 'affordable'....
So houses have never been affordable anywhere in the world?
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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SovietCensor
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Shadow
29 Jun 2015, 02:59 PM
So houses have never been affordable anywhere in the world?
Soviet Union?
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ThePauk
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Shadow
29 Jun 2015, 02:59 PM
So houses have never been affordable anywhere in the world?
Interesting question. I would think that for the majority of mans civilisation, debt was not required to attain shelter.
Certainly not the case in many nations now.
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peter fraser
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ThePauk
29 Jun 2015, 11:48 PM
Interesting question. I would think that for the majority of mans civilisation, debt was not required to attain shelter.
Certainly not the case in many nations now.
It was only in the 20th Century as credit became available to the man in the street that the common man could buy his own house. Before that people were lifetime tenants.
Edited by peter fraser, 29 Jun 2015, 11:58 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
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ThePauk
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peter fraser
29 Jun 2015, 11:57 PM
It was only in the 20th Century as credit became available to the man in the street that the common man could buy his own house. Before that people were lifetime tenants.
Mmmm, any link to prove that Peter?
Certainly Nth Korea now is free housing, so all depends on the political climate I would think.
Can you prove that the majority rented in the USA or the UK up until the 20th century?

Even here on Oz I know two people who paid cash, no debt for their housing. To them, debt was dirty thing and their houses were affordable to them.
Edited by ThePauk, 30 Jun 2015, 12:12 AM.
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A Lurker
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Dr Watson
29 Jun 2015, 12:37 PM
It amazes me the creativity and the ingenuity of people when going about buying their first property, but then shelter is very high on one's list of needs so perhaps it isn't so surprising.

I don't think the full gamut of ideas has been exhausted yet.

What will they think of next?
Shared equity loan products. The lender gets, say 20% of capital appreciation and you don't need to service that portion of the funds advanced = everyone can afford to pay 20% more.

These were being worked on just before the gfc but put on the back burner before being launched. Almost time to trot out again...
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peter fraser
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ThePauk
30 Jun 2015, 12:11 AM
Can you prove that the majority rented in the USA or the UK up until the 20th century?

Yes I can, but surely you were aware of that. It was access to finance that brought housing and cars to the masses.

Quote:
 
Even here on Oz I know two people who paid cash, no debt for their housing. To them, debt was dirty thing and their houses were affordable to them.


You personally knew people in the 19th century who paid cash for their house?
Amazing.
Any expressed market opinion is my own and is not to be taken as financial advice
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ThePauk
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peter fraser
30 Jun 2015, 12:36 AM
Yes I can, but surely you were aware of that. It was access to finance that brought housing and cars to the masses.




You personally knew people in the 19th century who paid cash for their house?
Amazing.
So no links or proof that before the 20th century, the majority of people rented. Noted and I call bullshit.
No, the people I know who never took loans are people I know...doh!
Edited by ThePauk, 30 Jun 2015, 01:26 AM.
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peter fraser
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ThePauk
30 Jun 2015, 01:25 AM
So no links or proof that before the 20th century, the majority of people rented. Noted and I call bullshit.
No, the people I know who never took loans are people I know...doh!
You don't have Google? Really you should save up and buy it.

try here - http://www.countriesquest.com/north_america/usa/people/urbanization_of_america/growth_of_cities.htm

Quote:
 
The wealthy created separate neighborhoods for themselves by building mansions on large plots of land at the edges of the cities or in the countryside. Housing developments of similar-looking single-family or multiple-family dwellings, built by speculators, sprouted on the edges of cities. These often catered to a new middle class of white-collar employees in business and industry. The houses faced broader streets and increasingly had plots of grass in front and sometimes in the rear. New apartments were spacious and often had balconies, porches, or other amenities. By 1900 more than a third of urban dwellers owned their own homes, one of the highest rates in the world at the time.


Home ownership rates before 1900 were lower but especially in the cities and heavily populated areas, it was better in farming communities. Ownership rates were also very low in the Southern states, but you can read that for yourself here - http://isites.harvard.edu/fs/docs/icb.topic868135.files/Kansas91_all.pdf

In 1890 the ownership rate in New York was just 29.28% refer page 33 but by then it was getting much better than the early part of the 19th century.

The people you know are people you know - amazing.
How did you ever get out of high school?
Any expressed market opinion is my own and is not to be taken as financial advice
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