Wrap Article.. when the dream is beyond reach

[duncan_m]

Domain Article.. When the dream is beyond reach..

Another negative article on wraps and a suggestion that the Vic Govt may well legislate.. what form that would take I have no idea..

The above article makes a great closing point:

"The entry of low-income earners into the property market should be encouraged but not at any price."

 

[Lissy]

I find it amusing that these articles continually decry higher penalty interest rates and the prospect of repossession if a buyer defaults.
Well, duh, what do you think banks do????? Let a person stay in the house they've mortgaged making no payments for years on end? I don't think so.
I'd also love to see a landlord let someone get 6 months behind in their rent without chucking them out.

 

[Les]

Gotta love this quote:-

One such lender in rural Victoria is charging rates of between 8 and 17 per cent

Really??? ONE such lender will be as generous as 8% (only 1.5% above the standard rate charged by Banks)

Yet, THAT SAME lender (I assume wrapper...) can charge up to 17% in some circumstances??? REALLY????


Let's hear from the wrappers. I can understand adding a percentage for:-
1. someone with NO deposit
2. someone who is a previous (pick one) bankrupt, loan defaulter, gun-runner.......
3. anyone not covered above who shows a serious default on CRAA.

BUT (my question) would the SAME wrapper be THAT flexible as to wrap to people from such diverse ends of the spectrum???


I would have thought that most wrappers would have a "niche" market. That is, they would wrap to "low-end" defaulters with a 2% to 3% above Bank rate. OR, they would live life at the "risky" end of things, where they would add 7% to 10% ABOVE Bank rate (to cover their risk in dealing with those at the extreme end of RISK). But, surely, not BOTH...... If true, WHAT are they on?????

Once more, until some of the assembled members tell me different, I will continue to believe that the above quote is just more "media hype".


Anyone care to (able to?) prove me wrong? Interested in all answers..........

Regards,