Sulley wrote:

bradje wrote:
Yet fixed interest Home Loans from ANZ and CBA are at 7.99% for 10 years and 15 years respectively.So does this suggest a disagreement with Steve's diagnosis or can the views be reconciled?

Interestingly, if you look at the 10year cash bond rates – the % at which the banks buy the money to lend you – the banks are…[Read more]

pjk1966 wrote:
The laws in this state where changed in 2000 and it is not possible for agaents or developers to sell property at inflated prices here. Independant valuations determine the price of the property, not a money hungry seller.

Far be it from me to suggest that the good people in the RE industry in Queensland aren't all models of…[Read more]

All,Nerds in the financial markets are basically saying:.25 next weeksome small chance of another .25 in December butalmost certain of another .50 by June depending on if (when?) the US slides into a recessionary blip.The 3 Yr inter-bank rate has jumped .30% in the last week or thereabout so I think you'll find mixed rates moving up pretty…[Read more]

Wishful,I would avoid any contract with your parents in which they commit to saying and paying rent for the rest of their life. I am not a lawyer but you run the risk of potentially creating a life tenancy or other equitable interest that may create problems later.For example, if they are contracting that they will stay and pay for the rest of…[Read more]

Nix,The deposit bond/off-the-plan scenario got a lot of people into a lot of trouble (particularly) in Docklands some years ago. "Investors" looking to flip the property on completion or (worse) on-sell the contract prior to settlement found themselves holding properties worth less than they paid and in the unexpected position of having to settle…[Read more]

hschmid wrote:
It's a great way to acquire IP at a discount.I have had terrific experiences.We form small JV syndicates to enhance our buying power.Developers become keen when they have remaining stock and want to fsell off and move on.Be aware that a discounted price will establish a new valuation precedent.If u buy $300k IP for say, $250k…[Read more]

sarajhI'd have to side with Stuart on this one.Any financial transaction that begins from a position summarised as "pretty maxed for serviceability" is unlikely to end well, IMHO. The question here is not whether you can increase your borrowings, but whether you should.Remember, most pundits are talking a further .50% on interest rates this…[Read more]

Alternatively, ask yourself the question, "If the bank's valuers are, on the balance of probabilities, correct, do I still like the deal". If so, forum shop until you can get the deal set. If not, find a better deal.

The other issue for lenders is the point at which the line is crossed from residential lending to defacto commercial finance. You'll find that some draw the line more conservatively than others.

Hmmmm. It is a sad day indeed when the over-the-top and misleading claims of Wild Wealthy Women are contrasted with the "better quality" of the Secret Books What reasonable, valid and well-researched claims to the good people at thesecrectvisionbook.com make:"Become a better person instantly""Find the perfect lover""Win that…[Read more]

Trakka,The lender doesn't ask about "liabilities in your name", they ask about "your liabilities". If you have obligations that, however constructed, will come to you should the proverbial hit the fan, you should declare them:(a) so you're not up for fraud; and(b) so you don't borrow more than you can reasonably afford.There is no magic…[Read more]

suavemechanic wrote:
just watched the show and am  a bit confused ,i want to sell one of my ips now ,but i also  want to  go to america and buy more there …..how cool was that guys two acre house on the river ?( about to be forclosed on …)you have to question the logic of retiring  and having a big mortgage ???? i got the impression his equ…[Read more]

All,I would strongly recommend forum members have a look at the 4 Corners story. It is not a question of "if" the sub-prime issue in the US will affect the Oz market – it already has. Investors here have benefited from the globalisation of credit markets in that has allowed the second tier and securitised lenders to push the price of borrowings…[Read more]

wealth4life.com,I think the term "accreditation" might be stretching things…accredited with who, recognised by what?In any case, not sure a training institution that advertises "7 Free Lessons from Teachers of the Secret" is quite the vibe I would expect from a serious training group.And that isn't your ad on their website 

nigel348 wrote:
Hi All,My equity ration was fine, but I failed on the income side.  They are also worried about the interest rate rise affecting my repayment ability.So, should I simply sit around for a few years till my income goes up (ie rent) and then re-finance or should I try another bank?/quote]Nigel,(a) If you have provided the Bank yo…[Read more]

v8ghia,Not a criticism of RAMs. Made lots of money but that was pre the capital markets melt down and their current funding costs have jumped and the market for their commerical paper narrowed. I was suggesting that they are likely to be a good deal more circumspect about back-dating a fixed-rate now than they might have been in the past.Always…[Read more]

FIrst thing would be to review the docs RAMs sent you (contract, letters of offer, post settlement stuff or whatever). If they say variable, rather than fixed, methinks you might have a problem. Always pays to read the gear, though many of us don't.Otherwise I think you're in to a he-said-she-said exercise with your broker and given where RAMs a…[Read more]

Interesting….http://www.anz.com.au/aus/shares/presentations/pdf/EarningsUpdate300807.pdf

At the risk of stating the unpalatable but obvious, if you are genuinely "geared up to your eyeballs", sell a property and reduce your debt. Capitalising payments just places a longer fuse on the same bomb.The chaos in the international funding markets is and will have an effect on Australian interest rates and if you can't cope with .25-.50%…[Read more]

Here's a scenario,Bank discovers (however it happens) after they've approved a loan but before they hand over the cash, that the property or properties is now worth less then they thought…perhaps even less than the loan amount.They proceed with the loan.Borrower falls over, now owing more than the property is worth and the bank takes them to t…[Read more]