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The biggest negative impacts from the housing bubble; What is the worst damage being done to Australian society.
Topic Started: 23 Sep 2013, 06:20 AM (7,577 Views)
Pig Iron
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Bogan scum

Timo
26 Sep 2013, 10:53 AM
+1
i am still open to taking that bet timo.
I am the love child of Tony Abbott and Pauline Hanson
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Timo
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Pig Iron
26 Sep 2013, 10:58 AM
i am still open to taking that bet timo.
Can't you just leave due to your own shame AA?
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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Pig Iron
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Bogan scum

Timo
26 Sep 2013, 01:48 PM
Can't you just leave due to your own shame AA?
i don't expect you to leave due to shame, it's clear you have none.

hence why i'm proposing a bet to settle this once and for all, but you won't take it because you know you'll be wrong.
I am the love child of Tony Abbott and Pauline Hanson
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Timo
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Pig Iron
26 Sep 2013, 02:51 PM
i don't expect you to leave due to shame, it's clear you have none.

hence why i'm proposing a bet to settle this once and for all, but you won't take it because you know you'll be wrong.
I think you just need to see your doctor again and have you meds upped...
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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genX
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peter fraser
25 Sep 2013, 10:40 PM
Getting finance for a startup is incredibly difficult, and using the equity in a home is probably the only hope that most people have to get startup finance. I'm not talking about someone starting a major enterprise, just a small business.

Even if someone has the equity it's difficult, and without equity it's almost (but not quite) impossible. Banks won't lend in this space when property prices are falling. Australian banks are bricks and mortar lenders.
I looked up the ABS numbers earlier this year, but CBF doing it now. The majority of small business startup funding (almost 70% from memory) is from individual or pooled savings (i.e. family business). There might be a small overdraft facility or revolving LOC, but there is almost never a loan against house equity.

Does a small business loan secured by property have seniority over the mortgage? If not, wouldn't the mortgage contract explicitly exclude any subordination?
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miw
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genX
26 Sep 2013, 08:37 PM
Does a small business loan secured by property have seniority over the mortgage? If not, wouldn't the mortgage contract explicitly exclude any subordination?
In most cases it is the first mortgage.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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barns
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genX
26 Sep 2013, 08:37 PM
I looked up the ABS numbers earlier this year, but CBF doing it now. The majority of small business startup funding (almost 70% from memory) is from individual or pooled savings (i.e. family business). There might be a small overdraft facility or revolving LOC, but there is almost never a loan against house equity.

Does a small business loan secured by property have seniority over the mortgage? If not, wouldn't the mortgage contract explicitly exclude any subordination?
When I set up my small business last year I just loaned the new company that I had incorporated personal money from my mortgage offset account so effectively that is first mortgage funds redrawn. I'm confident that this is pretty common.

It wouldn't have turned up in any stats as a loan to my business as it was basically an internal arrangement between me and the (then) new company.
Edited by barns, 26 Sep 2013, 11:26 PM.
“You Keep Using That Word, I Do Not Think It Means What You Think It Means” - Inigo Montoya
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Sydneyite
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barns
26 Sep 2013, 11:24 PM
When I set up my small business last year I just loaned the new company that I had incorporated personal money from my mortgage offset account so effectively that is first mortgage funds redrawn. I'm confident that this is pretty common.

It wouldn't have turned up in any stats as a loan to my business as it was basically an internal arrangement between me and the (then) new company.
I have done exactly the same thing for my business in the past.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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benny
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If you were trying to buy a home in the 70s or 80s, the cost of finance was extraordinary. Our mortgage rate began at 8% and hit 17.5% (in the UK) at one point. Personal income tax was much higher than today - AND we had the VAT.... Inflation was an untamed beast, destroying your savings at an alarming rate. We both had well paid jobs but were reduced to rice and beans and depression trying to stay afloat. You may well go "whatever" but the fact remains that many of the BBs you castigate were no strangers to having to do without to get their own homes.

The simple fact is times change, circumstances change. What I see is a terrible situation today. House prices are frighteningly high and I frankly can't understand how any young person could even qualify for the size of loan required!

I fail to understand how on earth anyone in their right mind could see that house prices rising at 10%p.a. is "good news everybody" when wage inflation is in the low single digits. Don't need a calculator to figure out the end of that scenario. And lets not forget that interest rates are at vanishingly low levels - if the rates start to climb I think it will be catastrophic for many mortgagees.

And finally, while it seems easy to blame resident BBs for the current buy up rates, I would suggest get along to a few auctions to observe the real elephant in the room. And just remember, when governments set up a bunch of rules which say don't do that, devious people seem to have no problem circumventing them.
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Timo
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stinkbug
23 Sep 2013, 09:52 AM
<REMOVED, BECAUSE I'M A NICE GUY>
Removed because your idiotic
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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