Welcome Guest [Log In] [Register]


Reply
  • Pages:
  • 1
  • 5
  • 7
Property to Boom over next 3 years.; Perth set for 22% gains over next 3 years
Topic Started: 18 Oct 2012, 11:45 AM (6,704 Views)
Alvin
Default APF Avatar

Trojan
21 Oct 2012, 04:34 PM
When the economy is bad enough to warrant ZIRP, then without a job, you won't be able to get a loan.
Sorry, you are dreaming if you think the bank will lend you a million dollars (or even $465k) when you guys only receive $444pw from centerlink.

I think he was taking the piss of the whole set-up?

Well I hope he was! :bl:
Profile "REPLY WITH QUOTE" Go to top
 
Pig Iron
Member Avatar
Bogan scum

Alvin
21 Oct 2012, 04:21 PM

Huhh?

Is that a serious question?

Euphoric, Party time, herd/bull mentality does too. What do you think creates bubbles?

Are you implying I have said 'only Bad news has a flow on effect'??

What 'ilk' are you grouping me in?


Using the words of your mum (Pauline Hanson).... "Please explain"?


classic bear behaviour, attempting to deflect the question by turning the same question on the initiator. You understand what i'm asking perfectly well.

how about you address the question by commenting on or linking to positive news, or are you too one eyed to do so?
I am the love child of Tony Abbott and Pauline Hanson
Profile "REPLY WITH QUOTE" Go to top
 
earthsta
Default APF Avatar


timmy
21 Oct 2012, 04:55 PM
Alvin
21 Oct 2012, 04:21 PM

Huhh?

Is that a serious question?

Euphoric, Party time, herd/bull mentality does too. What do you think creates bubbles?

Are you implying I have said 'only Bad news has a flow on effect'??

What 'ilk' are you grouping me in?


Using the words of your mum (Pauline Hanson).... "Please explain"?


classic bear behaviour, attempting to deflect the question by turning the same question on the initiator. You understand what i'm asking perfectly well.

how about you address the question by commenting on or linking to positive news, or are you too one eyed to do so?
Bit of projection happening there tummy :lol
Profile "REPLY WITH QUOTE" Go to top
 
Jolinar Maktub
Default APF Avatar


Trojan
 
When the economy is bad enough to warrant ZIRP, then without a job, you won't be able to get a loan.
Sorry, you are dreaming if you think the bank will lend you a million dollars (or even $465k) when you guys only receive $444pw from centerlink.
Just because your $444pw is enough to cover the repayments at 0.5%, it doesn't mean the banks will lend it to you. I suggest you read up on serviceability calculation of banks and how they work.

LOL, in another lifetime I worked in the Credit Risk department of a bank. Serviceability is determined first by the credit worthiness of the intended borrower. In the example I gave above, i.e. four generation loan at 0.5% interest, the payments on a 465K loan are easily met by centrelink unemployment benefits. That means that the entity servicing the loan is effectively the Federal Government, not the mortgagee. Banks attach a very special kind of credit worthiness to sovereign governments. Except in the case of hyperinflation or loss of confidence or civil war, sovereign governments are considered to be RISK FREE. And they amount of money you will lend to a risk free debtor is as much as they will borrow.

Trojan
 
You don't see record number of loans being written in countries where the interest rate hits zero.
That's exactly my point, despite some countries being on ZIRP, no countries are writing out a record number of loans

Yes, and your point is well taken. Money is almost free in those countries, but nobody is borrowing. Why is that? Could it be because they have already borrowed more than they can pay off in three lifetimes? Is it because intuitively people know that they cannot borrow an infinite amount of money?

Your observation also frustrates Ben Bernanke. He has been trying to get Americans to borrow more money for four years, with only marginal success. If QE3 doesn't work, the only remaining course of action will be to actually give money away, hence my thought experiment in my first post.


"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works". -- John Stuart Mill
Profile "REPLY WITH QUOTE" Go to top
 
Trojan
Default APF Avatar


Jolinar Maktub
21 Oct 2012, 06:46 PM
LOL, in another lifetime I worked in the Credit Risk department of a bank. Serviceability is determined first by the credit worthiness of the intended borrower. In the example I gave above, i.e. four generation loan at 0.5% interest, the payments on a 465K loan are easily met by centrelink unemployment benefits. That means that the entity servicing the loan is effectively the Federal Government, not the mortgagee. Banks attach a very special kind of credit worthiness to sovereign governments. Except in the case of hyperinflation or loss of confidence or civil war, sovereign governments are considered to be RISK FREE. And they amount of money you will lend to a risk free debtor is as much as they will borrow.
I'm certain that when the bank are calculating the entity servicing the loan, it is not the Federal Government - its the borrower.
Likewise, a public servant's employer is the Federal Government (ie they pay the salary) the bank will also not see the Federal government as the entity servicing the loan - its the public servant (ie borrower)

The borrower could easily blow their centerlink/salary on other things and fail to meet the obligations of servicing the debt - it is not the same as risk free sovereign government lending as you try to portray.
Edited by Trojan, 21 Oct 2012, 06:58 PM.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
Profile "REPLY WITH QUOTE" Go to top
 
Jolinar Maktub
Default APF Avatar


Trojan
 
I'm certain that when the bank are calculating the entity servicing the loan, it is not the Federal Government - its the borrower.
Likewise, a public servant's employer is the Federal Government (ie they pay the salary) the bank will also not see the Federal government as the entity servicing the loan - its the public servant (ie borrower)

Ceasing employment and terminating unemployment benefits are not the same risk. However, even in the case you describe above, it depends on the public servant. Professors with tenure used to be considered as close to risk free as an individual could be. The tenure system changed recently in Australia (about 10 years ago I think), so that is no longer the case, but before it did, the only consideration for serviceability was the Professor's salary, there was practically no credit risk consideration.

Trojan
 
The borrower could easily blow their centerlink/salary on other things and fail to meet the obligations of servicing the debt - it is not the same as risk free sovereign government lending as you try to portray.

Ask Frank Castle how that works for his deadbeat tenants. It goes straight into his account, they never see it hit theirs.


"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works". -- John Stuart Mill
Profile "REPLY WITH QUOTE" Go to top
 
Alvin
Default APF Avatar

timmy
21 Oct 2012, 04:55 PM
classic bear behaviour, attempting to deflect the question by turning the same question on the initiator. You understand what i'm asking perfectly well.

how about you address the question by commenting on or linking to positive news, or are you too one eyed to do so?

WTF!!.......Come on........You still can't be serious?

Do you not see yourself as a hypocrite trying to call someone on that!!!!! (Be a man and admit it, if not, then this is my last reply to you!)

Have you considered why i'm bearish on the global/Australian economy?

Nothing to do with missing the boat on property!!

I was 'Pro' property. Had a few investment properties over the years plus a PPOR. Sold them in 2010 and 2011. Made a good profit.

I was alerted to what was going on before the GFC. I wasnt sure at first and didn't have the balls to sell before or just after the GFC .... but continous research had finally led me to decide I was out. It wasnt easy convincing my wife and kids I tell you. ( although one investment property was sold for personal reasons, nothing to do with the GFC)

It takes more than a few people on a forum posting 'negative' (or what I call informative) articles to cause a global downturn?

There are 'fundamental' reasons as to what's happening!!!

I post and follow 'reality' Timmy.

Its about staying active and making your money work as hard as it can for yourself. And that means changing your views on where to invest.

I know I could now buy my last place (PPOR) for less than I sold it for in 2011.

I'm also watching my local market closely, 90% of prices are still dropping. Those that don't want to meet the market are still on the market. There are a few that get asking and probably less then 3% go above asking. (But this is from what I am observing only).

You have obviously made your mind up as to no matter what (reality) happens........your bullish decision on property is right!

ps. You still didn't answer my questions!
Profile "REPLY WITH QUOTE" Go to top
 
Jolinar Maktub
Default APF Avatar


Alvin
21 Oct 2012, 08:16 PM

WTF!!.......Come on........You still can't be serious?

Do you not see yourself as a hypocrite trying to call someone on that!!!!! (Be a man and admit it, if not, then this is my last reply to you!)

Have you considered why i'm bearish on the global/Australian economy?

Nothing to do with missing the boat on property!!

I was 'Pro' property. Had a few investment properties over the years plus a PPOR. Sold them in 2010 and 2011. Made a good profit.

I was alerted to what was going on before the GFC. I wasnt sure at first and didn't have the balls to sell before or just after the GFC .... but continous research had finally led me to decide I was out. It wasnt easy convincing my wife and kids I tell you. ( although one investment property was sold for personal reasons, nothing to do with the GFC)

It takes more than a few people on a forum posting 'negative' (or what I call informative) articles to cause a global downturn?

There are 'fundamental' reasons as to what's happening!!!

I post and follow 'reality' Timmy.

Its about staying active and making your money work as hard as it can for yourself. And that means changing your views on where to invest.

I know I could now buy my last place (PPOR) for less than I sold it for in 2011.

I'm also watching my local market closely, 90% of prices are still dropping. Those that don't want to meet the market are still on the market. There are a few that get asking and probably less then 3% go above asking. (But this is from what I am observing only).

You have obviously made your mind up as to no matter what (reality) happens........your bullish decision on property is right!

ps. You still didn't answer my questions!
Post of the day. Cheers.


"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works". -- John Stuart Mill
Profile "REPLY WITH QUOTE" Go to top
 
Pig Iron
Member Avatar
Bogan scum

Alvin
21 Oct 2012, 08:16 PM
ps. You still didn't answer my questions!
lol. after all that you are STILL deflecting. all of your questions are rhetorical.

you accuse me of having made up my mind no matter while you spam the board with every crappy news article you can find that's doom and gloom.
I am the love child of Tony Abbott and Pauline Hanson
Profile "REPLY WITH QUOTE" Go to top
 
Trojan
Default APF Avatar


Jolinar Maktub
21 Oct 2012, 07:30 PM
Ask Frank Castle how that works for his deadbeat tenants. It goes straight into his account, they never see it hit theirs.
How does the method of Frank's tenants paying rent got to do with how banks treat unemployed people as zero sovereign risk and lend them as much as they want to borrow?

As far as I know, Frank is not a bank and has not lent his tenants money to buy a house.
Edited by Trojan, 21 Oct 2012, 09:07 PM.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply
  • Pages:
  • 1
  • 5
  • 7



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy