Bank Bid To Maintain Housing Ponzi
May 27th 2016, 12:46 am
#1
Lost in BE Cyberspace
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Joined: Oct 2008
Location: Perth
Posts: 6,775
Bank Bid To Maintain Housing Ponzi
Westpac has lowed the deposit required for investment property.
After a sharp downturn in lending, the bank informed mortgage brokers the maximum loan to valuation ratio for new mortgages to property investors would rise to 90% up from the present 80%.
/Looks like First Time Home Buyers will be less likely than ever to enter home ownership as banks are determined to keep the Ponzi alive, with investors having been a major component of the market as well as maintain the denial that real estate is in crisis but to continue business as usual.
One suspects the other Big Three will not be far behind.
After a sharp downturn in lending, the bank informed mortgage brokers the maximum loan to valuation ratio for new mortgages to property investors would rise to 90% up from the present 80%.
/Looks like First Time Home Buyers will be less likely than ever to enter home ownership as banks are determined to keep the Ponzi alive, with investors having been a major component of the market as well as maintain the denial that real estate is in crisis but to continue business as usual.
One suspects the other Big Three will not be far behind.
May 27th 2016, 1:28 am
#2
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Bank Bid To Maintain Housing Ponzi
Westpac has lowed the deposit required for investment property.
After a sharp downturn in lending, the bank informed mortgage brokers the maximum loan to valuation ratio for new mortgages to property investors would rise to 90% up from the present 80%.
/Looks like First Time Home Buyers will be less likely than ever to enter home ownership as banks are determined to keep the Ponzi alive, with investors having been a major component of the market as well as maintain the denial that real estate is in crisis but to continue business as usual.
One suspects the other Big Three will not be far behind.
After a sharp downturn in lending, the bank informed mortgage brokers the maximum loan to valuation ratio for new mortgages to property investors would rise to 90% up from the present 80%.
/Looks like First Time Home Buyers will be less likely than ever to enter home ownership as banks are determined to keep the Ponzi alive, with investors having been a major component of the market as well as maintain the denial that real estate is in crisis but to continue business as usual.
One suspects the other Big Three will not be far behind.
According to you, the German way of renting for life is far, far superior
Keep doing that
Everyone is a winner
May 27th 2016, 1:54 am
#3
Lost in BE Cyberspace
Thread Starter
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: Bank Bid To Maintain Housing Ponzi
I see the subject matter continues to confound you. But for your reference, there has been a substantial increase in Germans taking out loans to purchase housing, raising house prices considerably in the cities.
Besides large population increase, having close to negative interest rates doesn't really encourage saving.
Now if you can't see any thing wrong with the continuation of the Ponzi Australia has been experiencing over moderately recent times, then trek on. You have a British passport to make a get away if things did get nasty to make a hasty exit.
The difference being as I have informed you before is folk find it next to impossible to rent in Australian cities if on welfare and very difficult if on low to average wages without resorting to sharing.
Very few First Time Home buyers are getting a look in with investors dominating that market.
It looks increasingly likely until there is a correction of some magnitude, Australia will become increasingly a nation of renters.
Not such a bad thing perhaps, but lets have safeguards assuring that segment of the population rights, as at the moment it is pretty much one sided.
May 27th 2016, 2:47 am
#4
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Bank Bid To Maintain Housing Ponzi
I see the subject matter continues to confound you. But for your reference, there has been a substantial increase in Germans taking out loans to purchase housing, raising house prices considerably in the cities.
Besides large population increase, having close to negative interest rates doesn't really encourage saving.
Now if you can't see any thing wrong with the continuation of the Ponzi Australia has been experiencing over moderately recent times, then trek on. You have a British passport to make a get away if things did get nasty to make a hasty exit.
The difference being as I have informed you before is folk find it next to impossible to rent in Australian cities if on welfare and very difficult if on low to average wages without resorting to sharing.
Very few First Time Home buyers are getting a look in with investors dominating that market.
It looks increasingly likely until there is a correction of some magnitude, Australia will become increasingly a nation of renters.
Not such a bad thing perhaps, but lets have safeguards assuring that segment of the population rights, as at the moment it is pretty much one sided.
Besides large population increase, having close to negative interest rates doesn't really encourage saving.
Now if you can't see any thing wrong with the continuation of the Ponzi Australia has been experiencing over moderately recent times, then trek on. You have a British passport to make a get away if things did get nasty to make a hasty exit.
The difference being as I have informed you before is folk find it next to impossible to rent in Australian cities if on welfare and very difficult if on low to average wages without resorting to sharing.
Very few First Time Home buyers are getting a look in with investors dominating that market.
It looks increasingly likely until there is a correction of some magnitude, Australia will become increasingly a nation of renters.
Not such a bad thing perhaps, but lets have safeguards assuring that segment of the population rights, as at the moment it is pretty much one sided.
The superior way - no need to worry
Sit back and relaaax
May 27th 2016, 3:08 am
#5
Lost in BE Cyberspace
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Joined: Oct 2008
Location: Perth
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Re: Bank Bid To Maintain Housing Ponzi
Possibly goes towards answering the question why so many Australians are on anti depressives. Not much chilled in living here. Unless of course one is of a certain age, having got their sh.. together, in more gentler times.
Personally though I am very relaxed. Just experience an angst into what happened and continues to happen in this country and the denial around the matter.
May 27th 2016, 3:33 am
#6
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Bank Bid To Maintain Housing Ponzi
Westpac has lowed the deposit required for investment property.
After a sharp downturn in lending, the bank informed mortgage brokers the maximum loan to valuation ratio for new mortgages to property investors would rise to 90% up from the present 80%.
/Looks like First Time Home Buyers will be less likely than ever to enter home ownership as banks are determined to keep the Ponzi alive, with investors having been a major component of the market as well as maintain the denial that real estate is in crisis but to continue business as usual.
One suspects the other Big Three will not be far behind.
After a sharp downturn in lending, the bank informed mortgage brokers the maximum loan to valuation ratio for new mortgages to property investors would rise to 90% up from the present 80%.
/Looks like First Time Home Buyers will be less likely than ever to enter home ownership as banks are determined to keep the Ponzi alive, with investors having been a major component of the market as well as maintain the denial that real estate is in crisis but to continue business as usual.
One suspects the other Big Three will not be far behind.
http://britishexpats.com/forum/barbie-92/bye-bye-liberal-government-will-you-ever-learn-876080/page16/
Cheers
May 27th 2016, 3:43 am
#7
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Joined: Dec 2010
Posts: 14,040
Re: Bank Bid To Maintain Housing Ponzi
Something BCworld mentioned on the above thread has been troubling me.
He said that if Labor wins and they change NG in mid 2017, there is going to be a rush on investment properties to take advantage of the current laws before the cut off.
So if there's a rush on that means property will spike for the next year. Anyone who can stump up 10% would be mad not to get on some investment property. Last opportunity.
Lets say the average house price in Sydney goes from $1 mil to $1.5 mil in that time. Could quite easily happen with everyone jumping on board.
Are we then expected to see that medium price drop back to $1 mil after July 2017?. ..... yeah righty. It might pull back slighty. 2% according to Gratton. 0% according to the ALP latest think tank. Prices never come down too much.
So what we will have is Labor unintentionally pushing the price further, creating a even larger bubble.
Thoughts?
He said that if Labor wins and they change NG in mid 2017, there is going to be a rush on investment properties to take advantage of the current laws before the cut off.
So if there's a rush on that means property will spike for the next year. Anyone who can stump up 10% would be mad not to get on some investment property. Last opportunity.
Lets say the average house price in Sydney goes from $1 mil to $1.5 mil in that time. Could quite easily happen with everyone jumping on board.
Are we then expected to see that medium price drop back to $1 mil after July 2017?. ..... yeah righty. It might pull back slighty. 2% according to Gratton. 0% according to the ALP latest think tank. Prices never come down too much.
So what we will have is Labor unintentionally pushing the price further, creating a even larger bubble.
Thoughts?
May 27th 2016, 3:55 am
#8
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Bank Bid To Maintain Housing Ponzi
An inability to discuss and heaven forbid to actually debate just adds to the nothing to add as per normal.
Possibly goes towards answering the question why so many Australians are on anti depressives. Not much chilled in living here. Unless of course one is of a certain age, having got their sh.. together, in more gentler times.
Personally though I am very relaxed. Just experience an angst into what happened and continues to happen in this country and the denial around the matter.
Possibly goes towards answering the question why so many Australians are on anti depressives. Not much chilled in living here. Unless of course one is of a certain age, having got their sh.. together, in more gentler times.
Personally though I am very relaxed. Just experience an angst into what happened and continues to happen in this country and the denial around the matter.
If you want to discuss house prices, there are plenty of your fellow 'experts' who will be happy to oblige
Fill yer boots
Last edited by Amazulu; May 27th 2016 at 5:01 am.
May 27th 2016, 4:07 am
#9
snɐןɔ ʎʇıuɐs
Joined: Nov 2006
Posts: 6,558
Re: Bank Bid To Maintain Housing Ponzi
Key things the Australian government ought to be seriously addressing now, and aren't :
Wake me up when they do.
- Climate change
It's no good to be talking about fake cuts in future, they need to be making real cut every year - and getting ready for the impacts of their past failure. Every new house should have >5Kw of solar on the roof. - Property unaffordability
Need to halve the costs, without making anyone a beggar. That means government control. - Startups, innovation and growth (to replace mining)
Real policies, real support, and overarching strategic plans. - Automation, unemployment, and mincome.
Moving now towards the structural changes to deal with this, which probably means a guaranteed job for everyone. - Health, education, social welfare - revolution
Big spenders that need to be reformed to both improve service quality, and reduce costs (cf automation).
Wake me up when they do.
May 27th 2016, 4:21 am
#10
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Bank Bid To Maintain Housing Ponzi
Key things the Australian government ought to be seriously addressing now, and aren't :
Wake me up when they do.
- Climate change
It's no good to be talking about fake cuts in future, they need to be making real cut every year - and getting ready for the impacts of their past failure. Every new house should have >5Kw of solar on the roof. - Property unaffordability
Need to halve the costs, without making anyone a beggar. That means government control. - Startups, innovation and growth (to replace mining)
Real policies, real support, and overarching strategic plans. - Automation, unemployment, and mincome.
Moving now towards the structural changes to deal with this, which probably means a guaranteed job for everyone. - Health, education, social welfare - revolution
Big spenders that need to be reformed to both improve service quality, and reduce costs (cf automation).
Wake me up when they do.
The futility of trying to run an economy on communist principles hasn't stopped Venezuela trying the same experiment over the past decade. They have been as successful as the East European communists were - successful, that is, in bankrupting the entire country. The Europeans were more successful thanks to the chaos after WWII, and during the Cold War, in erecting barriers to prevent flight of population and capital, whereas Venezuela has been hemorrhaging people and money for the past decade.
So what exactly is so appealing about a command economy with house prices set by the government and "jobs for everyone"? And anyway, just how does jobs for everyone mesh with increased automation?
Last edited by Pulaski; May 27th 2016 at 5:50 am.
May 27th 2016, 5:03 am
#11
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Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Bank Bid To Maintain Housing Ponzi
Much of that was tried between 1917 and the end of 1989, when the grand experiment in East European communism came to a crashing end. It subsequently became clear that the entire house of cards had been teetering precariously for a couple of decades or more.
The futility of trying to run an economy on communist principles hasn't stopped Venezuela trying the same experiment over the past decade. They have been as successful as the East European communists were - successful, that is, in bankrupting the entire country. The Europeans were more successful thanks to the chaos after WWII, and during the Cold War, in errecting barriers to prevent flight of population and capital, whereas Venezuela has been hemorrhaging people and money for the past decade.
So what exactly is so appealing about a command economy with house prices set by the government and "jobs for everyone"? And anyway, just how does jobs for everyone mesh with increased automation?
The futility of trying to run an economy on communist principles hasn't stopped Venezuela trying the same experiment over the past decade. They have been as successful as the East European communists were - successful, that is, in bankrupting the entire country. The Europeans were more successful thanks to the chaos after WWII, and during the Cold War, in errecting barriers to prevent flight of population and capital, whereas Venezuela has been hemorrhaging people and money for the past decade.
So what exactly is so appealing about a command economy with house prices set by the government and "jobs for everyone"? And anyway, just how does jobs for everyone mesh with increased automation?
May 27th 2016, 5:41 am
#12
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Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: Bank Bid To Maintain Housing Ponzi
Sorry about that!
I think you're maybe reading what they said wrong and they didn't in fact forecast any reduction, rather there would be an effect on growth. So say today's index = 100. With no change to NG in 2 years it would've been 110, instead it will be 109.8.
It's a tricky one. They're not in government so they can't announce a policy effective immediately like some budgetary measures are. They also can't keep quiet about it and suddenly implement it with no warning as everyone knows Australians have a god given right to real estate, investment properties, negative gearing and low interest rates!
It's a tricky one. They're not in government so they can't announce a policy effective immediately like some budgetary measures are. They also can't keep quiet about it and suddenly implement it with no warning as everyone knows Australians have a god given right to real estate, investment properties, negative gearing and low interest rates!
May 27th 2016, 5:45 am
#13
Lost in BE Cyberspace
Joined: Feb 2009
Location: UK
Posts: 14,284
Re: Bank Bid To Maintain Housing Ponzi
I see the subject matter continues to confound you. But for your reference, there has been a substantial increase in Germans taking out loans to purchase housing, raising house prices considerably in the cities.
Besides large population increase, having close to negative interest rates doesn't really encourage saving.
Now if you can't see any thing wrong with the continuation of the Ponzi Australia has been experiencing over moderately recent times, then trek on. You have a British passport to make a get away if things did get nasty to make a hasty exit.
The difference being as I have informed you before is folk find it next to impossible to rent in Australian cities if on welfare and very difficult if on low to average wages without resorting to sharing.
Very few First Time Home buyers are getting a look in with investors dominating that market.
It looks increasingly likely until there is a correction of some magnitude, Australia will become increasingly a nation of renters.
Not such a bad thing perhaps, but lets have safeguards assuring that segment of the population rights, as at the moment it is pretty much one sided.
Besides large population increase, having close to negative interest rates doesn't really encourage saving.
Now if you can't see any thing wrong with the continuation of the Ponzi Australia has been experiencing over moderately recent times, then trek on. You have a British passport to make a get away if things did get nasty to make a hasty exit.
The difference being as I have informed you before is folk find it next to impossible to rent in Australian cities if on welfare and very difficult if on low to average wages without resorting to sharing.
Very few First Time Home buyers are getting a look in with investors dominating that market.
It looks increasingly likely until there is a correction of some magnitude, Australia will become increasingly a nation of renters.
Not such a bad thing perhaps, but lets have safeguards assuring that segment of the population rights, as at the moment it is pretty much one sided.
May 27th 2016, 7:14 am
#14
snɐןɔ ʎʇıuɐs
Joined: Nov 2006
Posts: 6,558
Re: Bank Bid To Maintain Housing Ponzi
Much of that was tried between 1917 and the end of 1989, when the grand experiment in East European communism came to a crashing end. ...
So what exactly is so appealing about a command economy with house prices set by the government and "jobs for everyone"? And anyway, just how does jobs for everyone mesh with increased automation?
So what exactly is so appealing about a command economy with house prices set by the government and "jobs for everyone"? And anyway, just how does jobs for everyone mesh with increased automation?
You can deal with much of this via taxation (eg taxing profits above a core level hard). And "jobs for everyone" is the practical version of 'minimum guaranteed income', which will be needed otherwise. Personally I don't think they will get that through, but ensuring there is work for everyone is more of a tractable solution.
Oh, and before Beoz comes along with a 'new jobs will spontaneously appear', have people been noting the two automation stories that have been floating around in recent days?
http://www.bbc.com/news/technology-36376966
http://www.theguardian.com/us-news/2...ployees-robots
60,000 here, 100s of thousands there, and this is just the beginning. That's why it's on my list of "needs to be addressed NOW". There's at least 1M extra unemployed in Australia coming round the corner of the next next parliament.
Last edited by GarryP; May 27th 2016 at 8:08 am. Reason: Robots
May 27th 2016, 9:28 am
#15
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Bank Bid To Maintain Housing Ponzi
Sorry about that!
I think you're maybe reading what they said wrong and they didn't in fact forecast any reduction, rather there would be an effect on growth. So say today's index = 100. With no change to NG in 2 years it would've been 110, instead it will be 109.8.
It's a tricky one. They're not in government so they can't announce a policy effective immediately like some budgetary measures are. They also can't keep quiet about it and suddenly implement it with no warning as everyone knows Australians have a god given right to real estate, investment properties, negative gearing and low interest rates!
I think you're maybe reading what they said wrong and they didn't in fact forecast any reduction, rather there would be an effect on growth. So say today's index = 100. With no change to NG in 2 years it would've been 110, instead it will be 109.8.
It's a tricky one. They're not in government so they can't announce a policy effective immediately like some budgetary measures are. They also can't keep quiet about it and suddenly implement it with no warning as everyone knows Australians have a god given right to real estate, investment properties, negative gearing and low interest rates!