Comments on: The ‘Smoking Gun’ Behind the Property Bubble

By: Peter Fraser

Peter Fraser — Thu, 29 Oct 2009 02:04:37 +0000

Mick – sorry I took my eye of this thread. I wasn’t ignoring you.

Only half a million. Your getting ripped off – I could have got you more.

The point is what can be lent and what you should borrow are sometime two different things. You obviously did the smart thing and just took what you needed, but you see, that is your choice, no one forces people to take extra, in the same way that no-one forces someone on a diet to eat that chocolate. It is the individuals choice.

I should confess here that I often advise clients to keep a bit extra out as emergency funds (you never know when some one may need expensive medical treatment, car repairs etc) and just pay the extra off the loan so that it doesn’t cost them anything, but it is there in an emergency. Whether the clients utilise those funds responsibly is beyond my control, but I do like to see them with some ability to cover unforseen expenses.

We do get a commission but the usual for $50,000 is about $200 so I hardly think it is entirely about the money. As for the kickback – there is NO trail paid for 12 months and then it will be between $4 and $8 per month for that $50,000. If you repay or refinance the loan within 12 months the broker will have to refund the whole commission to the bank and will have worked for Zip.

Actually if everyone worked on those conditions all useless non-contributors would starve and only the best would survive. Look around your workplace and ask yourself how many of those you work with would survive. No results – no income. I like it, it has a beauty all of its own. It is the ultimate way of sorting out the wheat from the chaff.

By: Mick

Mick — Thu, 29 Oct 2009 01:15:05 +0000

CB havent I told you a hundred million times not to exaggerate.

By: Mick

Mick — Thu, 29 Oct 2009 01:12:35 +0000

Peter,

I have come in to this one a long way down the line but as an FYI we have been offered well over half a million dollars on just the wife’s salary $85k
PA without even adding on the 70k I average a year. I am the self employed one. It’s true madness what is being splashed around at the moment. Fortunately we have bought ourselves a place with 60% down so the mortgauge in real terms or rather in relation to what most people borrow is small in comparison oh and that is after we took 50k off the amount the loan shark (mortgauge adviser) from a well known home loan company wanted us to take out. I suspect it was his kick back. The ongoing payment from the bank not the initial couple of bucks he has to legally tell us about.

When the poo hits it really will be ugly.

By: Sandra

Sandra — Wed, 28 Oct 2009 22:24:13 +0000

CB – umm i’d have to say the answer is incompetence. Labor aint exactly famous for their brilliance wrt the economy, but they seem to be quite adept at ruining it and leaving it for the Libs to cleanup when they’re next in office…

By: cb

cb — Wed, 28 Oct 2009 11:24:59 +0000

And, since I am openly indulging my susceptability to paranoia, I might as well add for good measure, that I am becoming rather suspicious of Rudd Co as well. If he is so concerned about the economy and considers debt binge stimulus to be still necessary, then how come he is taking these rate rises lying down? These things simply don’t add up. What is going on???

By: cb

cb — Wed, 28 Oct 2009 11:18:56 +0000

Well, what can I say. Believe me I am trying hard to see it all from a different perspective, something more benign like PF and N suggest, but I just cannot. I simply do not find it credible that what he is doing can be made good sense of, let alone be justified, in light of the fact that the domestic economy is still on lifesupport from borrowed money, and instead of allowing it to get up on its own feet through the income we could still be earning through our exports, he guts the value of exports and sends our jobs overseas. That is not a case of being hamfisted or moronic, but out and out criminality. In my books, anyhow, but then again, I am not immune to exaggeration.

By: Sandra

Sandra — Wed, 28 Oct 2009 07:01:21 +0000

CB – i expect the imbecile to raise rates by 0.5% – just as his following of journalists and other ‘experts’ are predicting…

That’s my entire increase for this year gone in one foul swoop!
Aren’t we lucky to have such a moron heading our central bank?

By: cb

cb — Wed, 28 Oct 2009 06:32:13 +0000

Well folks, the news is in: Utilities have gone up some 20 – 30%, pushing up inflation. Now, get ready for the RBA’s rate rise, as it takes this to be the green light for charging the monster head on.
The way mass media is selling the message already, seeing absolutely no wrong in the reasoning, these mf morons and their minions obviously think that the prople are stupid. We are helpless all right, and that is probably good enough for them.

By: Sandra

Sandra — Wed, 28 Oct 2009 06:05:04 +0000

JC – i couldnt agree with you more!

Which is why I’m amazed at how many people here hang onto his every word, when his viewpoints are so obviously self serving.

By: JC

JC — Wed, 28 Oct 2009 05:35:52 +0000

Sandra, what you say about you lack of admiration for CJ’s support of govt meddling may have merit, but you should also remember that his business model is not based on the wholesale breakdown of the system; conversely, it’s about maintaining the status quo and engineering it for better performance. His views and perspectives are fully consistent with he is trying to achieve. Furthermore, rubbing the RBA, govt. and finanical sector up the wrong way is hardly the way to further his position in the establishment. Just like all of us, including Kris Sayce, he’s taking care of his own self interest (and doing it rather well I should add).