"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
Given that at least 30% are liar's loans as per recent data, that puts 100,000 homes on extremely shaky ground for the banks. At an average of, say, $500K per house that's $50Billion tottering on the brink. And if one green bottle, should accidentally fall...
Overall some 6.8% (311,000) of mortgage holders in Australia have been identified as having little or no real equity in their home. This is based on the fact that the value of their home is only equal to or less than the amount they still owe, placing them at considerable risk if they have to sell or prices decline. This is one of the findings from the latest Roy Morgan ‘State of the Nation-Spotlight on Finance Risk’ report. The data in this report is from Roy Morgan’s Single Source survey of more than 500,000 interviews conducted over the last decade.
That's about what I would expect to find. Given that many young FTB's buy using 95% mortgages which end up being 97% loans when LMI is added in, there will always be a substantial number of home owners with little equity.
But it's just a matter of time and their equity will grow.
Take risks - if you win you will become wealthy, if you lose you will become wise
I think it's very decent of the banks... the way they never call in all these loans at the drop of a hat, even though they could.
While they're milking you dry Shadow, continue to expect their wonderful beneficence.
When it all goes pear shaped.....
@ least 30% of you are criminals.... wow!
Rufus
10 Oct 2016, 09:21 AM
That's about what I would expect to find. Given that many young FTB's buy using 95% mortgages which end up being 97% loans when LMI is added in, there will always be a substantial number of home owners with little equity.
But it's just a matter of time and their equity will grow.
Yes, I was wondering how many would be in technical default when you take into account the requirements to maintain equity with a 80-90% lvr.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
As a guy who thinks the only way to make money in Australia is via speculating on houses, you'll never understand Shadow.
I don't think speculating on houses is the only way to make money, and I'm not trying to understand Shadow.
I'm asking you to explain how 'we'd all be better off without the expense of using leeches to subsise bank profits by unnecessary inflating house prices' ?
And how 'stopping 30% of people from misleading banks over their financials would assist keeping house prices down' ?
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
borrowers. Something like that- unless they have l.m.i.
loans above 80% are covered by LMI in the majority of cases, but banks don't have to insure the loans, they can carry some non-conforming loans if they choose to. They write them for doctors and other similar professionals all the time.
Quote:
Socially, we'd all be better off without the expense of using leeches to subsise bank profits by unnecessary inflating house prices.
Stopping 30% of people from misleading banks over their financials would obviously assist keeping house prices down.
Not really. The government want their citizens to own their own home so they don't have to house them in their dotage. Therefore they want inflation to lift asset values and erode debts so that all citizens who take a long term loan and pay it off responsibly will have their own home. This is what they want and aim for through manipulating interest rates and targeting growth.
Doesn't always work, and there are times when it works too well, but you don't understand what they are trying to achieve, and you are betting against the RBA when you choose not to buy a house. Long term the RBA will beat you every time.
Take risks - if you win you will become wealthy, if you lose you will become wise
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