Agree with that GP. I know I probably spend 10 minutes per day on average reading and posting but I would have thought being a moderator would require an enormous amount of effort. Reading each post and determining its relevance, moving posts, deleting where not appropriate. Mind you never been a moderator so maybe it doesn't take up much time at all.
ATTN Stingray
- Thread starter andrew_de_a
- Start date
Are we including mortgage brokers, accountants and seminar presenters in that sentence?
I'm not picking on any one person or group in particular, but i think you'll find some on here have done very nicely and drummed up a lot of business through this board.
With respect, wrong and an incorrect assumption I continue to see bandied about.
Rates are coming down but credit appetites of all lenders are coming back on a day by day basis. The buyer looking for the 100% lend will no longer be accomodated, the investor using a Lo Doc loan to refi and draw further equity won't have a market, valuers are more conservative, one or two small defaults are now a problem and many of the deals done two years ago can't be done today.
Cheaper credit relative to 6 month's ago is here, but flexible credit relative to where it was three years ago is gone.
The credit crunch is a bigger problem than lower interest rates can overcome.
Neither have I, but I'm sure it does. I have turned down requests to be a moderator on a couple of other forums in the past due to lack of time.coastymike said:
On one other forum I frequent, I know some of the moderators read every single message, which alone must take them ages. Takes me long enough just to read a small percentage of those messages. Then they regularly reply to other messages, move and delete messages and threads, etc. as well.
Well I meant directly. I'm sure quite a few have made money indirectly through exposure of their businesses and from some of the helpful advice they've received.
GP
I agree with what you're saying above TF, but I still don't think I'm wrong.
Maybe slightly off with the numbers. There will still be borrowers coming forward no matter what the climate.
I was referring more to the ones who may have the deposit saved, or saving for one, who didn't have the servicability when the rates were higher. Now they are becoming more qualified; cheaper rates, cheaper properties.
These are the ones who are credit-worthy (from the Banks' perspective) and haven't had the defaults, or want LoDocs etc.
They will be the ones with the 20% for 30% deposit with the 80% P&I loans.
Are you telling me there are none of these people around at all?
Hiya Bay
I think you are referring to discretionary borrowers, being those that have the choice coming to buy, rather than those who are at the margins.
ta
rolf
I think you are referring to discretionary borrowers, being those that have the choice coming to buy, rather than those who are at the margins.
ta
rolf
Nope....just that a whole bunch who could two years ago can't anymore. The cashed up buyers were there and remain so, but in net terms you have less borrowing (and therefore) buying capacity now relative to recent history.
And it will get worse. You will see a return to banks competing with each other but over a far smaller section of the market than previously. Importantly, PIs looking to put as little into the deal as possible or unable to prove *actual* income to service the deals they wish to do are not the group banks will be competing for....
Not Foundation this time. Stingray posts on the other forum as 'birke'. I won't link to the other forum, but you can look him up there if you want!
Cheers,
Shadow.
birke said:
birke said:
birke said:
That's what I mean TF.
I reckon the "ringe borrowers" will be out in the cold; only the really solid borrowers will be entertained.
There'll still be a few, but numbers will be way down.
I think the mantra now is "mind your LVR and servicability".
We have agreement though I suspect there are a few on this forum and elsewhere about to discover (much to their surprise) that they are the new "fringe" borrower.
Hiya Mark
deletions of mentions of THAT website relate to a zero tolerance of giving THAT site any more free plugs or search engine traffic.
Other reasons that I wont bother with here
ta
rolf
deletions of mentions of THAT website relate to a zero tolerance of giving THAT site any more free plugs or search engine traffic.
Other reasons that I wont bother with here
ta
rolf
The credit freeze
Hike toke; This is a moot point with us. About a year ago when I saw the writting on the internet/wall (pardon the pun) We went to our bankers with the message that we believed that our blue chip properties would be worth only 50% within 2-3 years. Initially I was laughed at but I persisted with my probes about the banks risk rating of us and what it was. To date they refuse to reveal our status.
I continued to talk to them and over time they have come to view us with a little more respect and their frankness has been an eye opener. We now have taken the position that all our assets must eventually be funded with limited recourse loans full stop.
Our first task is to build a twelve month reserve in living expenses, business expenses and mortgage repayments.
Although we saw it coming we are a bit shell shocked at the pace of the deterioration in credit markets overseas. Our best estimation now is we have another 18 months to build our reserves before the full impact of the financial tragedy plays out here in Australia.
It does not have to be a negative. We just need to adapt so that we can survive and profit from the fall out.
We have agreement though I suspect there are a few on this forum and elsewhere about to discover (much to their surprise) that they are the new "fringe" borrower.
Hike toke; This is a moot point with us. About a year ago when I saw the writting on the internet/wall (pardon the pun) We went to our bankers with the message that we believed that our blue chip properties would be worth only 50% within 2-3 years. Initially I was laughed at but I persisted with my probes about the banks risk rating of us and what it was. To date they refuse to reveal our status.
I continued to talk to them and over time they have come to view us with a little more respect and their frankness has been an eye opener. We now have taken the position that all our assets must eventually be funded with limited recourse loans full stop.
Our first task is to build a twelve month reserve in living expenses, business expenses and mortgage repayments.
Although we saw it coming we are a bit shell shocked at the pace of the deterioration in credit markets overseas. Our best estimation now is we have another 18 months to build our reserves before the full impact of the financial tragedy plays out here in Australia.
It does not have to be a negative. We just need to adapt so that we can survive and profit from the fall out.
Hey TF,
Within your reasonable judgement, how much % less borrowing will the loss of the 80% lo doc market entail? Are there stats on this?
And do you feel that 60% Lo doc will survive?
Thanks
