Plenty of equity but no servicability

[Trogdor]

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.

Please do. It would make great reading, get people thinking about risk mitigation, and contribute immensely to the forum.

 

[Alex P Keaton]

ditto!

........

 

[Alex P Keaton]

I think a lot of the train wrecks dont end up posting their story on ss of what went wrong! Its a pity though because it would help newbies. I think it was Daz who commented in the 1 million equity topic that some of the posters in that topic have hit the wall. I wonder what happened to them and if they had posted their stories here about what went wrong. There were a couple of ss's buying up big in Perth at the time, they just wanted to keep buying and buying. Looking back this was when the Perth market was at the top of the cycle. I'd imagine maybe they were the people Daz was talking about, but dunno. Maybe they lost a lot of money when the market fell soon after.

I can only recall reading a couple, one being crc and even that wasn't a huge train wreck, just a bit of a setback I think. He is still pretty young, and is doing pretty good now.

 

[Bigtone]

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.

G'day TF,

I am tipping we would not agree on most things in life but on this I am definitely with you 100%. If as an investor you ask to borrow money and know the terms and conditions you get the benefits if it all goes well but if it does not it is outrageous to blame the lender you requested the money from and gladly excepted the terms for doing what you asked. Accept responsibility for your own decisions, if you want the reward your gotta be prepared to wear the risk as well.

The problem with the new laws is it makes it even easier for people to blame the lender and or broker or basically anybody else for their own decisions. Gov't should make people "Man Up" and take responsibility rather than make it easier to pass the buck. Watch all the ambulance chasing lawyers get onto this legislation !

Token, If my house of cards ever falls down and I come into your office crying poor please hand me a gun so I can do the Honorable thing.

Cheers

BT

 

[Bigtone]

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.




ta
rof

i agree with that 100%

 

[battler]

Token, If my house of cards ever falls down and I come into your office crying poor please hand me a gun so I can do the Honorable thing.

Who are you going to shoot? Yourself? I don't think that would help paying off debt, and I doubt TF deals in guns.

 

[jingo]

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.

Hi TF,

Sure, giving away names is not the right thing to do. But, I would be really interested in a thread which gives stories of investors (not named of course) in which things have gone wrong and reasons. Eg. Job loss, not enough buffer, over committment, etc etc. Would you really consider starting one off?

I know only a small % of investors have multiple properties, be they residential or commercial. So for every success story there must be many failures. Interesting topic and certainly one I would appreciate learning from.....

Regards Jason.