I think the cost of offering offset accounts has pushed up their funding costs.
Initially they were a novelty used by the financially savvy, but now pretty much everyone understands and uses them.
There are lots of loans completely covered by credit funds in the offset account, and many many more that are largely covered by credit funds. Back in the seventies people were borrowing at rates over 10% but only getting 3.75% on their savings. Big margin.
Melbourne and Sydney are again driving a resurgence in investor lending up over 20% yoy. Is this the smart money or are these idiots so out of control they can't help themselves and are oblivious to the risk
Chris, what else can they do???
Everyone wants to ride the pony into the ground, the pony needs a rest, a feed and a good rub down.
The government milks the stamp duty, the agents milk the commissions, the banks milk the fees, the dumb dumbs are logging "capital gains"
Please note the player that does not get paid till after it all happens.
Apartment market has me concerned, but for other reasons.Sorry I meant to quote BB's post...
IMO, Brisbane will be the worst performing major property market for CY 2017, and will probably start to emulate Perth’s recent performance over the next few years.
Yes I agree. The apartment market is a major concern.
"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."
That is pure financial advice, you might be held liable for it in the future.
Think about this before you type anything, it doesn't take much to trace an IP address in the event of a civil suit being inacted.
For your own sake be more careful, phrases like 'I believe' or 'in my opinion' need to acomoany these type statements
For there to be a Civil suit the plaintiff would need to have first acted on the above unsolicited advice. They would need to demonstrate that the sole reason for their investment was the result of that unsolicited advice. They would have to demonstrate that had it not been for the unsolicited advice they would not have invested in any of the markets indicated. And they would have to wait 10 years for the unsolicited advice to play out to the end and demonstrate that they suffered severe financial hardship as a result of following the unsolicited advice.
The unsolicited advice is absent of phrases such as "I guarantee" or "I 100% personally guarantee" that could weld the unsolicited advice to Bardon as a guaranteed outcome.
Even if they could achieve that they would likely be laughed out of court and have costs awarded to the defendant on an indemnity basis.
That is pure financial advice, you might be held liable for it in the future.
Think about this before you type anything, it doesn't take much to trace an IP address in the event of a civil suit being inacted.
For your own sake be more careful, phrases like 'I believe' or 'in my opinion' need to acomoany these type statements
Real estate isn't a financial product for the purposes of financial advice laws in Australia.
A mortgage is a credit product but as no mortgage advice was given Barton is completely in the clear. Also the credit product laws and protections are much less onerous than general financial advice laws so he'd probably been alright even if he gave credit advice (unless he actually provides credit products without the appropriate licence), which he didn't anyway.
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