Australian Politics Forum - People Renting Chook Pens And Garages.

Ex Dame Pansi

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Re: People Renting Chook Pens And Garages.
Reply #75 - May 25^th, 2012 at 4:52pm

You're right SOB, the banks are not lending. There are thousands of people in your situation. They can't sell for the amount needed to pay the loan off. There will be thousands more paying back huge loans for houses that sell for much, much less than they borrowed.

The bubble has burst but no where near bottomed out yet, it has a long way to go.

I feel sorry for people in your situation, but not for the property speculators and the baby-boomers who caused this in the first place.

As house prices drop, rents will follow which is good news for the battlers and young families on minimum wages.

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... Gold Member Offline Posts: 23673 WA Gender:	Re: People Renting Chook Pens And Garages. Reply #76 - May 25^th, 2012 at 4:55pm Banks are probably freer with lending now than they were 10-15 years ago. Say, isn't reckless lending practices one of the prime reasons fo the GFC?
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Sir Spot of Borg

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Re: People Renting Chook Pens And Garages.
Reply #77 - May 25^th, 2012 at 5:02pm

... wrote on May 25^th, 2012 at 4:55pm:

Banks are probably freer with lending now than they were 10-15 years ago. Say, isn't reckless lending practices one of the prime reasons fo the GFC?

I saw a thing on TV a couple weeks ago about how banks decided to update their policy not to lend to property developers that build retirement villages and those lil villages you see around nowadays. I asked a property developer i know about it and he said yeah they stopped loaning any money to a lot of developers. Thats why not much is being built. Apparently a lot of ppl have bought land and started building then suddenly the money has dried up and they cant continue their project and they cant sell. I dont remember what the reasons were for the banks doing this.

SOB

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Sir lastnail

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Re: People Renting Chook Pens And Garages.
Reply #78 - May 25^th, 2012 at 5:50pm

Ex Dame Pansi wrote on May 25^th, 2012 at 4:52pm:

You're right SOB, the banks are not lending. There are thousands of people in your situation. They can't sell for the amount needed to pay the loan off. There will be thousands more paying back huge loans for houses that sell for much, much less than they borrowed.

The bubble has burst but no where near bottomed out yet, it has a long way to go.

I feel sorry for people in your situation, but not for the property speculators and the baby-boomers who caused this in the first place.

As house prices drop, rents will follow which is good news for the battlers and young families on minimum wages.

it just shows that the banks were indirectly fueling the bubble by lending money to deadbeats willing to pay a lot more than what the joint was actually worth. You cut off the credit supply and guess what happens ? The ponzi scheme collapses and the so called high house prices were nothing more than an illusion !!

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« Last Edit: May 25^th, 2012 at 5:56pm by Sir lastnail »

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Sir lastnail

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Re: People Renting Chook Pens And Garages.
Reply #79 - May 25^th, 2012 at 5:53pm

Sir Spot of Borg wrote on May 25^th, 2012 at 4:31pm:

Baronvonrort wrote on May 25^th, 2012 at 4:29pm:

Sir Spot of Borg wrote on May 25^th, 2012 at 4:03pm:

you really are illiterate arent you. Read what I said. Doesnt matter what price is on it. There is no market. Banks arent lending .

The banks are not lending to those losers who cannot repay a loan so you are stretching the truth here.

Drop the price and you might get some people interested in buying it.

I dropped it AS I SAID ALREADY. Nobody is looking. Real estate says its not the price there just isnt anybody looking.

SOB

drop it some more until the price to income ratio approaches a realistic figure then you will probably get a sale Wink

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Sir Spot of Borg

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Re: People Renting Chook Pens And Garages.
Reply #80 - May 25^th, 2012 at 5:57pm

Sir lastnail wrote on May 25^th, 2012 at 5:53pm:

Sir Spot of Borg wrote on May 25^th, 2012 at 4:31pm:

Baronvonrort wrote on May 25^th, 2012 at 4:29pm:

Sir Spot of Borg wrote on May 25^th, 2012 at 4:03pm:

you really are illiterate arent you. Read what I said. Doesnt matter what price is on it. There is no market. Banks arent lending .

The banks are not lending to those losers who cannot repay a loan so you are stretching the truth here.

Drop the price and you might get some people interested in buying it.

I dropped it AS I SAID ALREADY. Nobody is looking. Real estate says its not the price there just isnt anybody looking.

SOB

drop it some more until the price to income ratio approaches a realistic figure then you will probably get a sale Wink

you are just trying to piss me off now. What a dimwit.

SOB

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Moron!

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Ex Dame Pansi

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Re: People Renting Chook Pens And Garages.
Reply #81 - May 25^th, 2012 at 6:01pm

Sir Spot of Borg wrote on May 25^th, 2012 at 5:02pm:

... wrote on May 25^th, 2012 at 4:55pm:

Banks are probably freer with lending now than they were 10-15 years ago. Say, isn't reckless lending practices one of the prime reasons fo the GFC?

I saw a thing on TV a couple weeks ago about how banks decided to update their policy not to lend to property developers that build retirement villages and those lil villages you see around nowadays. I asked a property developer i know about it and he said yeah they stopped loaning any money to a lot of developers. Thats why not much is being built. Apparently a lot of ppl have bought land and started building then suddenly the money has dried up and they cant continue their project and they cant sell. I dont remember what the reasons were for the banks doing this.

SOB

There's two different areas near me where a developer sub divided and the speccies come in and build, they ended up going into receivership. They sold a few, but there's still plenty sitting idle, the whole estate is looking a little derelict. It only takes a couple of years.

In the last year or two building has come to a standstill here.

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"When the power of love overcomes the love of power, the world will know peace." Hendrix
andrei said: Great isn't it? Seeing boatloads of what is nothing more than human garbage turn up.....

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freediver

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Re: People Renting Chook Pens And Garages.
Reply #82 - May 25^th, 2012 at 6:17pm

Sir lastnail wrote on May 24^th, 2012 at 10:57pm:

freediver wrote on May 24^th, 2012 at 6:45pm:

Quote:

yes but you can't live in a share !! Property is a necessity not a luxury.

You can rent, and for many renting and putting their money into shares is the sensible option.

Quote:

Speculating in property and blowing up bubbles has wrecked major economies around the world causing instability as we are now seeing

Actually no, property has always been the least volatile market.

Quote:

They buy an investment property hopping to off load the risk by renting it out and getting the tenant to pay it off for them. They just sit on their arse collecting rent and getting tax deductions for the interest they pay or any maintenance they need.

You are pretty poor at accounting. The rent does not cover the interest repayments, let alone the capital repayments. They have to work to get the money together then work to pay the rest off. They only get tax deductions on the amount of repayments above the rental income they get - ie, they get tax deductions because they are making a loss.

Are you kidding !! Tell us what caused the GFC ?? Does Freddie Mac and Fanny May ring any bells ?? Have a look at the burst property bubbles in Spain, Ireland which are now ruined economies Sad

And too bad if you are an owner occupier because you get no rent and no deductions on interest payments which means you have to work much harder than the hoarder who is not satisfied with owning the one joint he lives in Sad

What is your point with the Freddie and Fannie reference? Are you familiar with the difference between a trigger and a cause.

You are also wrong about the tax benefits for an owner occupier. They are actually better than an owner-renter. You just have to get your accounting right.

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