Brace for even higher price!

yes I know that, my question was are you predicting a collapse???

Linear or not, im not forseeing a collapse but a complete stagnation for years

Collapse? no idea, maybe, maybe not. Not much in the economy is giving me confidence, one out of control price bubble in Sydney and you'd be forgiven for thinking Australia has found an elixir.

A bubble has developed because of pure asset speculation, not economic fundamentals. Pimco issued this exact warning... when your lenders get nervous you should be nervous. I just think a price boom that isn't supported by any sort of economics is bound to end in tears. just my experience of bubbles, maybe I am old and bitter. If you want to call the bubble a healthy growth spurt then you may be more comfortable.

http://www.pimco.com/EN/Insights/Pa...ustralia-and-the-Implications-for-Policy.aspx

and

http://www.smh.com.au/business/the-...stralian-household-debt-pimco-20150617-ghp502

Most times when a body such as this state an opinion ,forum members shoot them down and call them idiots so perhaps that is the case, all these groups are idiots!
 
Agreed, risks are significant there.i know someone who was bankrupted during gfc because they bank out of the blue asked him to pay back just under $100m in loans in a pretty short period, less than 6 months I believe. Even though he miraculously paid back all but $7m they still bankrupted him instead of allowing an extra month or 2. Realistically he lost around $200m minimum.

interesting story. A life destroying one if you are the subject of it. I knew and heard of several people taken down during the gfc that had $xx or $xxx million in equity. banks are funny beasts, they will goto the end of the earth tracing some poor sod down for his delinquent credit card, yet go and write of $40m unnecessarily because they want to clean upthe balance sheet and the provision is there for it so they may as well use it. The stories of the devastated individuals were not very widely published, I think everyone was too busy deciding between the Panasonic vs the pioneer plasma screen.

I have previously posted how a bank gave me a week over xmas to repay them $1.5m. Always makes for pleasant xmas day discussion.
 
I am presuming the would not be covered under the Credit Code?

interesting story. A life destroying one if you are the subject of it. I knew and heard of several people taken down during the gfc that had $xx or $xxx million in equity. banks are funny beasts, they will goto the end of the earth tracing some poor sod down for his delinquent credit card, yet go and write of $40m unnecessarily because they want to clean upthe balance sheet and the provision is there for it so they may as well use it. The stories of the devastated individuals were not very widely published, I think everyone was too busy deciding between the Panasonic vs the pioneer plasma screen.

I have previously posted how a bank gave me a week over xmas to repay them $1.5m. Always makes for pleasant xmas day discussion.
 
I have previously posted how a bank gave me a week over xmas to repay them $1.5m. Always makes for pleasant xmas day discussion.

Hey Ausprop, what was was the reason/circumstance whereby they wanted the $$$ from you?? If you don't mind telling the story?
 
There is the answer...if it is not covered ...you have no protection...one of reasons why you need to keep it across multiple banks.

Harder for them to take on other banks....

So in this case, the best practice is to get loan from bank A for IP 1 and then bank B for IP 2 ... and so on ... to avoid Cross Collateralization ?
 
Hey Ausprop, what was was the reason/circumstance whereby they wanted the $$$ from you?? If you don't mind telling the story?

the funding offer was in 2 x tranches, 1 for the land, 1 for the build. the land was roughly $2m, plan was to split the block in half, build a $1m house each side, sell each for $2.5ish. they funded the land, then GFC took a grip, my end product halved in value. the lender, allco finance, said I must take the finance and construct the houses. I said you guys may be lunatics but I want no part of it. They got really personal, said I had deceived them with my intentions (wtf?) and on the 13th Dec 2007 said I must repay the facility in full no later than 6 Jan 2008.

Allco went broke not long after so I think it ws actually them that had a hidden agenda.
 
Yep.....a great asset protection strategy also...the ambulance chasers will have no idea if you own most of it or just have debt! ;)

So in this case, the best practice is to get loan from bank A for IP 1 and then bank B for IP 2 ... and so on ... to avoid Cross Collateralization ?
 
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