WBC accepted my annuity.
Plenty of equity but no servicability
- Thread starter McBrain
- Start date
WBC accepted my annuity.
Clearly we have a different outlook on life. The biggest is probably that I see no benefit in stressing out to borrow funds to buy a dodgy asset.
Can't you hear the distant drums?
How long was the annuity for, and how long had you had it when applying for finance?
Not over the vuvuzelas, no.
Clearly we have a different outlook on life. The biggest is probably that I see no benefit in stressing out to borrow funds to buy a dodgy asset.
Perhaps we have a diferent outlook on life, but surely we are reading the same thread? The thread relates to how to get a loan approved where the poster has been knocked back due to serviceability. The poster didnt ask for opinions on whether they should take a loan, and there was no mention at all of the type of assett, dodgy or otherwise. Perhaps there is a thread like that running somewhere else? Perhaps you should start one?
Perhaps we have a diferent outlook on life, but surely we are reading the same thread? The thread relates to how to get a loan approved where the poster has been knocked back due to serviceability. The poster didnt ask for opinions on whether they should take a loan, and there was no mention at all of the type of assett, dodgy or otherwise. Perhaps there is a thread like that running somewhere else? Perhaps you should start one?
You actual said if they cant afford it dont buy it, not 'dont stress in my opinion you shouldnt try too hard because the world is about to cave in and you will look back on this moment and see the banks are doing you a favour'.
If you had said that, fair enough, but from you did say, it sounded like you were being elitist like many of the banks policies could be characterised as lately, and only lending to people who dont need the money, which I have an issue with...
If you had said that, fair enough, but from you did say, it sounded like you were being elitist like many of the banks policies could be characterised as lately, and only lending to people who dont need the money, which I have an issue with...
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Five year term and settled on a property the following month from the annuity start date
Given how "generous" serviceability calculators are, I tend to take the fact that someone fails serviceability as an indicator that, on the balance of probabilities....you know... they probably can't service the loan.
Sometimes one needs protecting from oneself.
Sometimes one needs protecting from oneself.
this is true some people need protecting form themselves but should they ruin it for the rest of us?
can u legislate for stupidity? in all likelihood these people will lose their money in some way or another anyway.
i didn't meet the 'generous serviceability" tests on my first IP nor on my 30th, so was low doc all the way, in today environment i would have struggled to maybe 5 properties
said it before but the new credit licensing rules have been written by "people who don't understand lending to solve a problem that does not exist"
compare australian arrears to uk and especially USA, our lending was very good already , ninja and subprime loans where they lent 140% on honeymoon rates on non recourse conditions was a recipe for disaster, that is very different to people who put a minimum of 20% plus costs hurt money into.
i agree with tobe on this. a person who has a strong equity situation is far more likely to be a good risk to a lender than someone with good serviceability but very small deposit or equity.
yeah...........
Sometimes they need protection from the banks too
got my fave again today
Did an "on the edge" pre approval for a young lady looking to buy a PPOR on Northern qld.
170 k system and human approved IO loan for 5 years rillong to 25 pi
We are now 3 mths later and we fail servicing by 39 a month .........
ok lender pls come back to me with how we can handle this.
1. At 170 k ur client fails servicing.... but, we will do it at PI but not IO. Who is protecting who
2. We can do IO at 165 k
ta
rolf
yeah...........
Sometimes they need protection from the banks too
got my fave again today
Did an "on the edge" pre approval for a young lady looking to buy a PPOR on Northern qld.
170 k system and human approved IO loan for 5 years rillong to 25 pi
We are now 3 mths later and we fail servicing by 39 a month .........
ok lender pls come back to me with how we can handle this.
1. At 170 k ur client fails servicing.... but, we will do it at PI but not IO. Who is protecting who
2. We can do IO at 165 k
ta
rolf
'so we can be sure you can afford the repayments we will make your monthly commitment higher, that should protect you'
yeah BT
So whenyou fall over you ahve built some equity
Likemy other all time fave thats made a major come back.
I thought it was pre Iphone days, but now theres a new Iphone app for it
Rental reliance.
Sorry buddy you have 20 ips , cant give you a loan, u make way too much money from recurring means, gotta be shonky, you know we have read that Amways stuff and it cant be true. You cant make more more from investment or business than your PAYG, its just not sustainable.
When you challenge and push back on this sort of stooooooopidity you get NO real response, even at HIGH levels of the food chain.
ta
rolf
So whenyou fall over you ahve built some equity
Likemy other all time fave thats made a major come back.
I thought it was pre Iphone days, but now theres a new Iphone app for it
Rental reliance.
Sorry buddy you have 20 ips , cant give you a loan, u make way too much money from recurring means, gotta be shonky, you know we have read that Amways stuff and it cant be true. You cant make more more from investment or business than your PAYG, its just not sustainable.
When you challenge and push back on this sort of stooooooopidity you get NO real response, even at HIGH levels of the food chain.
ta
rolf
I know I've said this before but the borrowers (almost always investors..sometimes fresh from the seminar, sometimes with half a doz under their belts) most likely to squeal and deny personal accountability on the basis The Bank should never have lent them the money are always those who fudged their numbers because they didn't want no desk-jockey to deprive them access to the river of money that comes from owning property.
Ironically, correspondence from one ex-member of this forum that proudly talked up their dynamic and informed approach to investing sits in my collection of Outrageous Examples Supporting The Argument That Personal Accountability Is A Foreign Concept To Some People.
Ironically, correspondence from one ex-member of this forum that proudly talked up their dynamic and informed approach to investing sits in my collection of Outrageous Examples Supporting The Argument That Personal Accountability Is A Foreign Concept To Some People.
Slow and steady wins the race,
Which username? It would be a big lesson to newbies and frankly all others.
Yes they should
Effective today, the speed limit on all motorways will be reduced to 60 km/h.
That will fix most of the bad crashes.
Problem is, even with the limit reduced to 60, some nuts will still do 180 in the pouring rain on Ps and bald tyres, because the existing or any of the new rules dont apply to them.
The NCCP has honorable motives, but with the majority of the the real "undertow rabble" not having to be compliant for a long time its like a 3 different rules at the same time.
My limited experience tells me most people that get into mortgage trouble DONT get into trouble because of the mortgage per se. Its all the "add on" stuff that wont be regulated (if at all) till 2014............and beyond.
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rof
Hi, need to bring the discussion back to the original.
SF, your outlook is coloured by other parameters, & they can be very worthy ones too. People who have 30 years left of working can service a much higher loan than their incomes suggest.
We should also give some credit to the borrower having some brains which I suspect McBrain might have some.
Some people do not pass the banks' serviceability criteria as I did, ALL my life. As perhaps McBrain does too. If I had waited for the banks to say I could service the loans, I'd never have bought anything.
McBrain, there're 80% LoDoc loans at the normal home loan rates. Westpac had one up to 2 months ago. Don't know if that's changed.
You might want to try another broker to see what's available.
KY
SF, your outlook is coloured by other parameters, & they can be very worthy ones too. People who have 30 years left of working can service a much higher loan than their incomes suggest.
We should also give some credit to the borrower having some brains which I suspect McBrain might have some.
Some people do not pass the banks' serviceability criteria as I did, ALL my life. As perhaps McBrain does too. If I had waited for the banks to say I could service the loans, I'd never have bought anything.
McBrain, there're 80% LoDoc loans at the normal home loan rates. Westpac had one up to 2 months ago. Don't know if that's changed.
You might want to try another broker to see what's available.
KY
Lau, as usual I have not made my point well. I have no objection to people pushing the envelope and taking a big bite.
I am just calmer than most here and don't understand the urgency. 30 years is a long time and it is much easier to compound your capital later on. In one's earlier years the most important thing is to develop good money habits and to live within one's means.
Compounding is most effective when you are compounding your own capital. I still have grave doubts about the long term wisdom of compounding debt so cruising for a year doing a little saving is not wasting a year, IMHO.
I am just calmer than most here and don't understand the urgency. 30 years is a long time and it is much easier to compound your capital later on. In one's earlier years the most important thing is to develop good money habits and to live within one's means.
Compounding is most effective when you are compounding your own capital. I still have grave doubts about the long term wisdom of compounding debt so cruising for a year doing a little saving is not wasting a year, IMHO.
Sharing the user name would be inappropriate. That said, I've often considered starting a topic detailing some of the train wrecks I come across.
Though this would be largely to proect the doe-eyed newbies, I suspect people would be surprised to see how often it the one-property-a-year-for-five-years investor shows up.
