Welcome to the Australian Ford Forums forum.

You are currently viewing our boards as a guest which gives you limited access to view most discussions and inserts advertising. By joining our free community you will have access to post topics, communicate privately with other members, respond to polls, upload content and access many other special features without post based advertising banners. Registration is simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please contact us.

Please Note: All new registrations go through a manual approval queue to keep spammers out. This is checked twice each day so there will be a delay before your registration is activated.

Go Back   Australian Ford Forums > General Topics > Non Ford Related Community Forums > The Bar

The Bar For non Automotive Related Chat

Reply
 
Thread Tools Display Modes
Old 30-11-2022, 07:57 AM   #2191
buggerlugs
If it ain't broke........
Donating Member1
 
Join Date: Dec 2007
Location: Sunshine Coast Qld
Posts: 18,717
Default Re: Australia housing bubble

Talking the housing up already. Saying if rates don't go above 4% there will be another boom. More dribble....
__________________
Visitors welcome
Relatives by appointment only
buggerlugs is online now   Reply With Quote Multi-Quote with this Post
Old 30-11-2022, 09:12 AM   #2192
Polyal
The 'Stihl' Man
Donating Member2
 
Polyal's Avatar
 
Join Date: Jan 2005
Location: TAS
Posts: 27,585
Default Re: Australia housing bubble

The problem seems to be supply? Also, and I didnt even think of this until I heard it on the radio.

With the rise of air'bnb etc there must be 1000's of houses out of the normal rental market for short term stays. Fair enough for the owners but not great for the market.

Unfortunately, as much as I want to see it fall further the low unemployment rate isnt lining up with the interest rate rises so it seems we need higher rates to really take any meaningful effect.
__________________
  • 2017 Toyota Prado (work hack)
  • 2017 Mitsubishi Pajero Sport
  • 2003 CL7 Honda Accord Euro R (JDM) - K20A 6MT
  • 1999 Lexus IS200 - 1G-FE Turbo 6MT
  • 1973 ZF Ford Fairlane
Polyal is offline   Reply With Quote Multi-Quote with this Post
Old 30-11-2022, 10:10 AM   #2193
Yellow_Festiva
Where to next??
 
Yellow_Festiva's Avatar
 
Join Date: Oct 2006
Location: Sydney
Posts: 8,893
Default Re: Australia housing bubble

Went out over the weekend to have a look around. Nothing much has changed...

Looked at a '4br / 2bath / 4 car garage' place - and advertised as such.

The bottom 2 garages and rear storage room and laundry has been converted into a 2br unit. The other side of the bottom level has been converted into a 1br unit.

The upper level has had extensive modifications - a very big balcony (perhaps 4x12m) has been tacked onto the back of the upper level, enclosed and a professional kitchen with stone benchtops has been installed and plumbed.

The laundry seems to be a communal affair, with a very large washer and dryer sitting on the concrete slab outside under the rear balcony with waste water entering a hole in the concrete via fixed PVC pipes.

Before inspection I questioned myself as to why the floorplan was not available, now I know why.

It's obvious that the person that did the work spent considerable coin ($120k?) and for most parts the additions were well done.... but now we have a 7br / 3 kitchen / 4 bathroom and NO garage property that is not council approved and would suit a slumlord more than a family...

"But it would make a GREAT INVESTMENT" was the reply from the agent when I questioned the modifications...

It gets worse - after the inspection the Asian owners followed me to the car and tried to engage in conversation with my partner (also Asian) who I left in the car as she was watching my 2 kids asleep in the back.. My Vietnamese lip reading skills are a little rusty but she seemed to be mouthing 'You like? You like?'.

Been listed for a week and already dropped 50K....

In another open house we were followed around by a mother and daughter duo that were passing comments to each other in Arabic, probably questioning my somewhat blended family... but after 2 rooms I had had enough and promptly left, helped a little by the apparent use of MDF skirting as a mirror frame in the bathroom that had since puffed out to twice the thickness and leeched brown stains down the wall to the sink...

Just wasted time... I'm finding so many places that have been falsely advertised like this and there is no real regulation of the RE advertising industry other than loose laws on price baiting.

I wish I had kept more of these types of screen shots... a bit of a 'woopsy' by the agent:



What was the rule again? 20%?

Missed out on 2 properties that were 'certainly going to auction' only for them to pop up in my feed as sold prior for less than I would have paid...

Will go out again today to a few open houses... I need a laugh.
__________________
___________________________

I've been around the world a couple of times or maybe more.......
Yellow_Festiva is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 01-12-2022, 09:41 PM   #2194
T3rminator
FF.Com.Au Hardcore
 
T3rminator's Avatar
 
Join Date: Jul 2005
Location: Melbourne
Posts: 6,918
Default Re: Australia housing bubble

Apparently inflation didn't rise as much as anticipated last month. Think fuel price might have had something to do with it. Housing still a problem.

Does inflation take into account all these black friday sales?
__________________
~~~~~~~~~~~~~~


Rides (past and present)
Current: 2004 Ford Falcon 5.4L 3v Barra 220, Manual
Past: Mitsubishi Sigma (m), Toyota Seca (m), Toyota Seca SX (m), Toyota Vienta V6 (m), Toyota Soarer 4L v8 (a), BA XR8 ute (m), T3 TE50 (m), BMW Z4 (m)

AFF motto - If contrary views trigger, please use ignore button.
T3rminator is offline   Reply With Quote Multi-Quote with this Post
Old 02-12-2022, 11:13 AM   #2195
Citroënbender
DIY Tragic
 
Citroënbender's Avatar
 
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,362
Chairman's Award: Chairman's Award - Issue reason: Your outstanding contributions to this community have not gone unnoticed. IN my view you are a worthy recipient of the (rarely used) Chairman's Award. 
Default Re: Australia housing bubble

Terminology question:
Quote:
…a registered interest in land such as a lease or mortgage is affected
In the context of a NSW mortgage, does this mean only the mortgagor, or also the mortgagee?

Last edited by Citroënbender; 02-12-2022 at 11:14 AM. Reason: Phormatting amendment
Citroënbender is online now   Reply With Quote Multi-Quote with this Post
Old 08-12-2022, 11:18 PM   #2196
zilo
BANNED
 
zilo's Avatar
 
Join Date: Jul 2012
Posts: 2,886
Default Re: Australia housing bubble

I like this guy Martin North, he is well respected for providing accurate analysis based on real world data.

For your viewing pleasure here are some videos based on particular locations, showing the price falls by posting the initial asking prices, the dates and the current prices as well as days on the market.

Looks like ACT is in for a shake up...



and



and




and



and



and

__________________
Please press the "Like" button if you enjoy my posts.

(It's the red triangle with exclamation mark on the left)

Last edited by zilo; 08-12-2022 at 11:28 PM.
zilo is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 13-12-2022, 11:27 PM   #2197
Citroënbender
DIY Tragic
 
Citroënbender's Avatar
 
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,362
Chairman's Award: Chairman's Award - Issue reason: Your outstanding contributions to this community have not gone unnoticed. IN my view you are a worthy recipient of the (rarely used) Chairman's Award. 
Default Re: Australia housing bubble

I have just discovered something that offends me.

An adjacent subdivision has had its closest dwelling/title appended with my street number and an “A” in the NSW Land Registry.

I have never received any communication on this matter, and am frankly gobsmacked that someone thought this was OK to register?! I’ll be seeking urgent advice on whether the titling address can be amended. I understand the numerical conventions applied however they are not - as I read it - legally binding.
Citroënbender is online now   Reply With Quote Multi-Quote with this Post
4 users like this post:
Old 04-01-2023, 08:32 PM   #2198
Syndrome
Ford screwed the Falcon
 
Syndrome's Avatar
 
Join Date: Sep 2013
Posts: 7,224
Default Re: Australia housing bubble

I can sense 2023 will be an "interesting" year as the amount of RE agents contacting me has increased recently. When the market is buoyant I don't hear from them as business is good so they don't need to chase customers.
__________________
Falcon: 1960 - 2016

My cars

Current ride
2016 FG X XR6 - 6 speed manual

Previous rides
2009 FG XR6 - 6 speed auto
2006 BF MkII XT ESP - 6 speed auto
2003 BA XT V8 - 5 speed manual
1999 AU Forte - 5 speed manual
1997 EL Fairmont - 4 speed auto
1990 EAII Fairmont Ghia - 4 speed auto
Syndrome is online now   Reply With Quote Multi-Quote with this Post
3 users like this post:
Old 25-01-2023, 07:00 PM   #2199
MITCHAY
FF.Com.Au Hardcore
 
Join Date: Apr 2005
Location: Canberra
Posts: 13,434
Default Re: Australia housing bubble

Well inflation figures today show it is up. Who is surprised by that? It was a given for the lead up to xmas!

Another rise coming for sure. Tips are 0.25 for Feb and March and then hopefully that's where it ends but who the **** knows.

Quote:
Originally Posted by Syndrome View Post
I can sense 2023 will be an "interesting" year as the amount of RE agents contacting me has increased recently. When the market is buoyant I don't hear from them as business is good so they don't need to chase customers.
I had another one the other day when I specifically told him to take me off. Even lists I know I have unsubscribed from, I magically am still on. The sellers agent for my place is not even a RE any more he's a ****en mortgage broker

I just said not interested in buying or selling. Next time I will just hang up cold and if they give me lip I will tell I already told you to **** off!
MITCHAY is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 25-01-2023, 07:23 PM   #2200
Citroënbender
DIY Tragic
 
Citroënbender's Avatar
 
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,362
Chairman's Award: Chairman's Award - Issue reason: Your outstanding contributions to this community have not gone unnoticed. IN my view you are a worthy recipient of the (rarely used) Chairman's Award. 
Default Re: Australia housing bubble

Still a lot of building jobs “parked” in my area. I think they’re waiting for the return of cheap Chinese mainland labour. They’re virtually like slaves.

The Lebanese job behind me is 50% sold, they had no property stylists or fancy gimmicks and have grossed $1,9M on a sale of half the site they bought for $1,95M total. Add $400K to build and that’s going to net nearly one and a half million in rough profit in 20 months total duration when the second house is sold. As I say, money for jam.

My win is smaller, term deposit interest is up and it covers the odd few regos.
Citroënbender is online now   Reply With Quote Multi-Quote with this Post
4 users like this post:
Old 29-01-2023, 11:30 PM   #2201
zilo
BANNED
 
zilo's Avatar
 
Join Date: Jul 2012
Posts: 2,886
Default Re: Australia housing bubble

I keep getting offers to buy me out, was 5 times what I paid, now up to 8 times what i paid 9 years ago.

It's tempting to sell and interest rates don't seem to bother certain purchasers.

Just for the record the declared CPI for the period January 2022 to December 2022 is

7.8%.
__________________
Please press the "Like" button if you enjoy my posts.

(It's the red triangle with exclamation mark on the left)
zilo is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 30-01-2023, 04:18 PM   #2202
blueoval
Critical Thinker
 
blueoval's Avatar
 
Join Date: Jan 2005
Location: Adelaide
Posts: 20,375
Valued Contributor: For members whose non technical contributions are worthy of recognition. - Issue reason: Well thought out and constructive posts.  A real credit to this forum. 
Default Re: Australia housing bubble

Quote:
Originally Posted by zilo View Post
I keep getting offers to buy me out, was 5 times what I paid, now up to 8 times what i paid 9 years ago.

It's tempting to sell and interest rates don't seem to bother certain purchasers.

Just for the record the declared CPI for the period January 2022 to December 2022 is

7.8%.
While the temptation is there to sell, unless you are downgrading, what could you buy to replace it comparitively?
__________________
"the greatest trick the devil pulled, is convincing the world he doesn't exist"

2022 Mazda CX5 GTSP Turbo

2018 Hyundai Santa Fe Highlander


1967 XR FALCON 500


Cars previously owned:
2021 Subaru Outback Sport
2018 Subaru XV-S
2012 Subaru Forester X
2007 Subaru Liberty GT
2001 AU2 75th Anniversary Futura
2001 Subaru GX wagon
1991 EB XR8
1977 XC Fairmont
1990 EA S Pak
1984 XE S Pak
1982 ZJ Fairlane
1983 XE Fairmont
1989 EA Falcon
1984 Datsun Bluebird Wagon
1975 Honda Civic
blueoval is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 30-01-2023, 08:49 PM   #2203
Citroënbender
DIY Tragic
 
Citroënbender's Avatar
 
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,362
Chairman's Award: Chairman's Award - Issue reason: Your outstanding contributions to this community have not gone unnoticed. IN my view you are a worthy recipient of the (rarely used) Chairman's Award. 
Default Re: Australia housing bubble

Quote:
Originally Posted by The article below
Up to one in eight Aussies lied on their home loan applications to borrow more
https://www.9news.com.au/national/th...a-62975f49d553
Who’da thunk it?
Citroënbender is online now   Reply With Quote Multi-Quote with this Post
Old 31-01-2023, 11:18 AM   #2204
Poetic Justice
NOT A TOYOTA :/
 
Poetic Justice's Avatar
 
Join Date: Jan 2005
Location: Eastern Suburbs, Melb
Posts: 2,554
Default Re: Australia housing bubble

One in eight?

Genuinely thought it would be far worse than that and probably is.
__________________
06 LandbargeCruiser Sahara
Managed to remain in the v8 fraternity
Poetic Justice is offline   Reply With Quote Multi-Quote with this Post
Old 31-01-2023, 11:57 AM   #2205
Citroënbender
DIY Tragic
 
Citroënbender's Avatar
 
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,362
Chairman's Award: Chairman's Award - Issue reason: Your outstanding contributions to this community have not gone unnoticed. IN my view you are a worthy recipient of the (rarely used) Chairman's Award. 
Default Re: Australia housing bubble

That 12,5% are the liars who were honest about lying.
Citroënbender is online now   Reply With Quote Multi-Quote with this Post
5 users like this post:
Old 31-01-2023, 12:10 PM   #2206
T3rminator
FF.Com.Au Hardcore
 
T3rminator's Avatar
 
Join Date: Jul 2005
Location: Melbourne
Posts: 6,918
Default Re: Australia housing bubble

How many low doc loans got dished out during the "boom"?

What percentage of the "liar loans" were low doc loans?

On a traditional loan, from a traditional bank, they go through all your records - bank statements to see spending habits, proof of income statements etc. Although you could probably still get away with little "non full truths".
__________________
~~~~~~~~~~~~~~


Rides (past and present)
Current: 2004 Ford Falcon 5.4L 3v Barra 220, Manual
Past: Mitsubishi Sigma (m), Toyota Seca (m), Toyota Seca SX (m), Toyota Vienta V6 (m), Toyota Soarer 4L v8 (a), BA XR8 ute (m), T3 TE50 (m), BMW Z4 (m)

AFF motto - If contrary views trigger, please use ignore button.
T3rminator is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 31-01-2023, 12:14 PM   #2207
blueoval
Critical Thinker
 
blueoval's Avatar
 
Join Date: Jan 2005
Location: Adelaide
Posts: 20,375
Valued Contributor: For members whose non technical contributions are worthy of recognition. - Issue reason: Well thought out and constructive posts.  A real credit to this forum. 
Default Re: Australia housing bubble

I can foresee a lot of mortgagee sales happening in the coming months from the fraudulent loan docs especially if interest rates continue to increase the way they are.
__________________
"the greatest trick the devil pulled, is convincing the world he doesn't exist"

2022 Mazda CX5 GTSP Turbo

2018 Hyundai Santa Fe Highlander


1967 XR FALCON 500


Cars previously owned:
2021 Subaru Outback Sport
2018 Subaru XV-S
2012 Subaru Forester X
2007 Subaru Liberty GT
2001 AU2 75th Anniversary Futura
2001 Subaru GX wagon
1991 EB XR8
1977 XC Fairmont
1990 EA S Pak
1984 XE S Pak
1982 ZJ Fairlane
1983 XE Fairmont
1989 EA Falcon
1984 Datsun Bluebird Wagon
1975 Honda Civic
blueoval is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 31-01-2023, 12:19 PM   #2208
T3rminator
FF.Com.Au Hardcore
 
T3rminator's Avatar
 
Join Date: Jul 2005
Location: Melbourne
Posts: 6,918
Default Re: Australia housing bubble

Quote:
Originally Posted by blueoval View Post
I can foresee a lot of mortgagee sales happening in the coming months from the fraudulent loan docs especially if interest rates continue to increase the way they are.
Excess stock will be absorbed by overseas people coming back. In particular, am hearing a lot of honkies, who previously held PR here but went back to HK for business, are starting to return. Cost of living has hit the stratosphere over there, they are selling up their pigeon holes, and coming back to buy the $1-$2m homes and have spare change to live comfortably.
__________________
~~~~~~~~~~~~~~


Rides (past and present)
Current: 2004 Ford Falcon 5.4L 3v Barra 220, Manual
Past: Mitsubishi Sigma (m), Toyota Seca (m), Toyota Seca SX (m), Toyota Vienta V6 (m), Toyota Soarer 4L v8 (a), BA XR8 ute (m), T3 TE50 (m), BMW Z4 (m)

AFF motto - If contrary views trigger, please use ignore button.
T3rminator is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 31-01-2023, 02:11 PM   #2209
hayseed
Guest
 
Join Date: Aug 2018
Posts: 1,892
Default Re: Australia housing bubble

My Wife has a work Colleague Who Built a new House 2 years ago. & got a Home loan with a Low Honeymoon Introductory Rate...!!

The Honeymoon Finished a couple of Weeks ago..LOL

Payments have gone from $850 a Fortnight to a touch over $1300 a Fortnight..
She & her Husband went and had a whinge to Westpac. To no avail..
hayseed is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 31-01-2023, 02:41 PM   #2210
Citroënbender
DIY Tragic
 
Citroënbender's Avatar
 
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,362
Chairman's Award: Chairman's Award - Issue reason: Your outstanding contributions to this community have not gone unnoticed. IN my view you are a worthy recipient of the (rarely used) Chairman's Award. 
Default Re: Australia housing bubble

Nobody told them it might happen?

It’s amazing how many people are claiming mortgage stress but won’t take in a lodger or create a granny flat on the sly.
Citroënbender is online now   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 31-01-2023, 04:33 PM   #2211
FTE217
T3/Sprint8
Donating Member2
 
FTE217's Avatar
 
Join Date: Jan 2005
Location: Australia
Posts: 16,552
Default Re: Australia housing bubble

Nothing new though, there will always be a % of people who live beyound their means past present future and more so never listen to wise words of wisdom having something left in the kitty just in case........
Last decade and more as T3 mentions, applying for a loan through a bank/broker they need everything of your history etc, working for yourself you may have been able to fudge a few things but as an employee how can you doctor anything.
Back in the day of having cash/folding on the side was helpful for those who didn't have a high wage but that no more now that DD/electronic banking etc is taking over.

Anyway as said there will always be those you put themselves on the edge - luck comes into it, stability was there for so so long after the GFC, stock market plunges now and then, a war but overall it was ground hog day with such low interest rates for yonks.
Covid the next reset $h it happens and the merry go round starts again.
__________________
Tickfords T3/TS50 '02
Sprint8 manual Sept 24 '16
Daily Macan GTS
"Don't believe everything you read on the internet. Abraham Lincoln"
FTE217 is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 31-01-2023, 05:40 PM   #2212
Poetic Justice
NOT A TOYOTA :/
 
Poetic Justice's Avatar
 
Join Date: Jan 2005
Location: Eastern Suburbs, Melb
Posts: 2,554
Default Re: Australia housing bubble

Wish my mortgage was $1300 a fortnight, lol!
__________________
06 LandbargeCruiser Sahara
Managed to remain in the v8 fraternity
Poetic Justice is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 31-01-2023, 08:55 PM   #2213
Syndrome
Ford screwed the Falcon
 
Syndrome's Avatar
 
Join Date: Sep 2013
Posts: 7,224
Default Re: Australia housing bubble

Quote:
Originally Posted by hayseed View Post
My Wife has a work Colleague Who Built a new House 2 years ago. & got a Home loan with a Low Honeymoon Introductory Rate...!!

The Honeymoon Finished a couple of Weeks ago..LOL

Payments have gone from $850 a Fortnight to a touch over $1300 a Fortnight..
She & her Husband went and had a whinge to Westpac. To no avail..
Anybody who purchased in the last 12 to 18 months is in for a "surprise"
__________________
Falcon: 1960 - 2016

My cars

Current ride
2016 FG X XR6 - 6 speed manual

Previous rides
2009 FG XR6 - 6 speed auto
2006 BF MkII XT ESP - 6 speed auto
2003 BA XT V8 - 5 speed manual
1999 AU Forte - 5 speed manual
1997 EL Fairmont - 4 speed auto
1990 EAII Fairmont Ghia - 4 speed auto

Last edited by Syndrome; 31-01-2023 at 09:12 PM.
Syndrome is online now   Reply With Quote Multi-Quote with this Post
3 users like this post:
Old 01-02-2023, 01:08 AM   #2214
GO FURTHER
Moderator
 
GO FURTHER's Avatar
 
Join Date: Jan 2014
Location: Melbourne
Posts: 7,940
Tech Writer: Recognition for the technical writers of AFF - Issue reason: Fitting New Iridium Plugs & the state of the old ones - (Photo Essay) 
Default Re: Australia housing bubble

What's needed in Australia, are banks or lending institutions that can offer borrowers a 20 or 30 year fixed interest rate loan.

That would take the uncertainty out of the equation for many mortgage holders and who would no longer be held hostage to any RBA future rate increases, using the only blunt tool they have to curb inflation.

The maximum fixed interest rate loan period currently on offer in Australia is 10 years from the ANZ, RAMS, and two others.

In the USA, many borrowers are on 30-year fixed interest rate loans.

Yes, they are more expensive (currently) than variable rates... But over the course of 30 years, you may break even in the long term, especially if interest rates ever go back to the high rates we saw in the 80's and early 90's. (never say never).

In the US, you can even re-finance your 30 year fixed home loan to another loan, if interest rates drop... So you are not locked in for "life".

Australia’s mortgage market is unlike almost any other in the world, boasting one of the highest rates of variable interest loans.

Maybe more American banking institutions that offer home loans need to open up shop here.

Over 4,400 banks (not branches) in the USA versus our big 4 plus another 93 or so. (Yes, the US population is magnitudes greater than Oz, but still more banks in the US per capita if you do the sums).

Competition is good for consumers.

Would you buy a $100,000 plus car on a variable interest rate car loan?
Probably not.

Food for thought.
GO FURTHER is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 01-02-2023, 09:21 AM   #2215
Polyal
The 'Stihl' Man
Donating Member2
 
Polyal's Avatar
 
Join Date: Jan 2005
Location: TAS
Posts: 27,585
Default Re: Australia housing bubble

Quote:
Originally Posted by GO FURTHER View Post
What's needed in Australia, are banks or lending institutions that can offer borrowers a 20 or 30 year fixed interest rate loan.

That would take the uncertainty out of the equation for many mortgage holders and who would no longer be held hostage to any RBA future rate increases, using the only blunt tool they have to curb inflation.

The maximum fixed interest rate loan period currently on offer in Australia is 10 years from the ANZ, RAMS, and two others.

In the USA, many borrowers are on 30-year fixed interest rate loans.

Yes, they are more expensive (currently) than variable rates... But over the course of 30 years, you may break even in the long term, especially if interest rates ever go back to the high rates we saw in the 80's and early 90's. (never say never).

In the US, you can even re-finance your 30 year fixed home loan to another loan, if interest rates drop... So you are not locked in for "life".

Australia’s mortgage market is unlike almost any other in the world, boasting one of the highest rates of variable interest loans.

Maybe more American banking institutions that offer home loans need to open up shop here.

Over 4,400 banks (not branches) in the USA versus our big 4 plus another 93 or so. (Yes, the US population is magnitudes greater than Oz, but still more banks in the US per capita if you do the sums).

Competition is good for consumers.

Would you buy a $100,000 plus car on a variable interest rate car loan?
Probably not.

Food for thought.
Interesting although I am not sure Americas recent history would show they are the gold standard for economic management either.

IMO its the simple fact that housing is used as a wealth building tool in Australia, the fact that its a primary source of security for people seems to get missed.
__________________
  • 2017 Toyota Prado (work hack)
  • 2017 Mitsubishi Pajero Sport
  • 2003 CL7 Honda Accord Euro R (JDM) - K20A 6MT
  • 1999 Lexus IS200 - 1G-FE Turbo 6MT
  • 1973 ZF Ford Fairlane
Polyal is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 01-02-2023, 09:28 AM   #2216
Charliewool
Bolt Nerd
Donating Member3
 
Charliewool's Avatar
 
Join Date: Jan 2005
Location: Ojochal, Costa Rica (Pura Vida!)
Posts: 14,823
Default Re: Australia housing bubble

Quote:
Originally Posted by GO FURTHER View Post

Would you buy a $100,000 plus car on a variable interest rate car loan?
Probably not.

Food for thought.
Thousands DO already… Their $90,000 SUV simply added to their home loan!
__________________
Current vehicles.. Yamaha Rhino UTV, SWB 4L TJ Jeep, and boring Lhd RAV4
Bionic BF F6... UPDATE: Replaced by Shiro White 370z 7A Roadster. SOLD
Workhack: FG Silhouette XR50 Turbo ute (11.63@127.44mph) SOLD
2 wheels.. 2015 103ci HD Wideglide.. SOLD
SOLD THE LOT, Voted with our feet and relocated to COSTA RICA for some Pura Vida!
(Ex Blood Orange #023 FPV Pursuit owner : )
Charliewool is online now   Reply With Quote Multi-Quote with this Post
Old 01-02-2023, 09:49 AM   #2217
T3rminator
FF.Com.Au Hardcore
 
T3rminator's Avatar
 
Join Date: Jul 2005
Location: Melbourne
Posts: 6,918
Default Re: Australia housing bubble

Quote:
Originally Posted by Charliewool View Post
Thousands DO already… Their $90,000 SUV simply added to their home loan!
It was bloody tempting a couple of years ago! Weren't dealerships themselves offering 1-2% interests on new car loans at one stage? Obviously done through an underwriter bank.
__________________
~~~~~~~~~~~~~~


Rides (past and present)
Current: 2004 Ford Falcon 5.4L 3v Barra 220, Manual
Past: Mitsubishi Sigma (m), Toyota Seca (m), Toyota Seca SX (m), Toyota Vienta V6 (m), Toyota Soarer 4L v8 (a), BA XR8 ute (m), T3 TE50 (m), BMW Z4 (m)

AFF motto - If contrary views trigger, please use ignore button.
T3rminator is offline   Reply With Quote Multi-Quote with this Post
Old 01-02-2023, 10:06 AM   #2218
Citroënbender
DIY Tragic
 
Citroënbender's Avatar
 
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,362
Chairman's Award: Chairman's Award - Issue reason: Your outstanding contributions to this community have not gone unnoticed. IN my view you are a worthy recipient of the (rarely used) Chairman's Award. 
Default Re: Australia housing bubble

I’m definitely feeling a “moral squeeze” on the issue of rental housing availability, it seems wrong to be surrounded by empty houses while ordinary people are getting bent over by landlords and agents.

There are five complete, empty dwellings within 100m of me; a total of 22 bedrooms.

I suspect the very recent push by China to send students back overseas, will furnish the cheap labour for building sites that are currently “parked” and may result in a few more existing dwellings changing hands.
Citroënbender is online now   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 01-02-2023, 10:22 AM   #2219
GO FURTHER
Moderator
 
GO FURTHER's Avatar
 
Join Date: Jan 2014
Location: Melbourne
Posts: 7,940
Tech Writer: Recognition for the technical writers of AFF - Issue reason: Fitting New Iridium Plugs & the state of the old ones - (Photo Essay) 
Default Re: Australia housing bubble

Quote:
Originally Posted by Charliewool View Post
Thousands DO already… Their $90,000 SUV simply added to their home loan!
True, a line of credit or draw down on your home loan is still one of the cheapest forms of finance you can get.

One of the reasons, I virtually paid off my mortgage but left $500 still owing on it, is so the loan remains "open", and that huge line of credit is always there for a rainy day.
The minute monthly interest on it is worth it to me to have that facility available. (Which I may never be able to get again).

It's those that put their car on their home loan, (and being a depreciating asset) over 20 years or an extended period and end up paying far more in the long term, unless they are diligent enough to repay it within a reasonable timeframe, like a normal car loan.
GO FURTHER is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 01-02-2023, 10:54 AM   #2220
Citroënbender
DIY Tragic
 
Citroënbender's Avatar
 
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,362
Chairman's Award: Chairman's Award - Issue reason: Your outstanding contributions to this community have not gone unnoticed. IN my view you are a worthy recipient of the (rarely used) Chairman's Award. 
Default Re: Australia housing bubble

Quote:
…One of the reasons, I virtually paid off my mortgage but left $500 still owing on it, is so the loan remains "open", and that huge line of credit is always there for a rainy day.
My parents did this, once my father was dead it was a fair pain in the whatsit to wrap up.

To me, the overarching requirement by your mortgagee that your life (income and prospects) situation is notified to them as it changes, negates any longer term use of a facility like that - the very small but undeniable risk of a loan being called in because the lender’s terms are not - and cannot be - met, negates any sense of real security.
Citroënbender is online now   Reply With Quote Multi-Quote with this Post
Reply


Forum Jump


All times are GMT +11. The time now is 06:21 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Other than what is legally copyrighted by the respective owners, this site is copyright www.fordforums.com.au
Positive SSL