More on housing affordability
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LunaticFringe wrote:
how do these people get these loans?
Exactly. That's the biggest issue... financial institutions passing out money hand over fist to people who would "normally" not be able to take out a loan... They have a lot to answer for!! Of course, the flipside is that people seem to want 4 bedroom, 2 bathroom with a pool as their first house these days!!
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_Damian S_ wrote:
They have a lot to answer for!!
Yeah, I admit I don't have much sympathy for the banks that wrote a ton of bad loans and ended up holding the bag. In our case, we assumed that the values wouldn't suffer a serious decline, and we figured that if we did find ourselves over-extended, we'd sell and downsize. Unfortunately, the market has dropped to the point where that's impossible. The assumption that values wouldn't decline seriously was really the key issue. It's small consolation that we weren't exactly alone in that assumption.
L u n a t i c F r i n g e
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_Damian S_ wrote:
They have a lot to answer for!!
Yeah, I admit I don't have much sympathy for the banks that wrote a ton of bad loans and ended up holding the bag. In our case, we assumed that the values wouldn't suffer a serious decline, and we figured that if we did find ourselves over-extended, we'd sell and downsize. Unfortunately, the market has dropped to the point where that's impossible. The assumption that values wouldn't decline seriously was really the key issue. It's small consolation that we weren't exactly alone in that assumption.
L u n a t i c F r i n g e
LunaticFringe wrote:
It's small consolation that we weren't exactly alone in that assumption.
I imagine it would be of little consolation to you... sorry to hear that you are hurting from the decline...
LunaticFringe wrote:
The assumption that values wouldn't decline seriously was really the key issue.
I don't think that where I live we will see much of a decline if at all... we were never really at (direct) risk from the subprime crisis (although some of the banks played on it to raise rates/fees/whatever they could gouge). Even now, house prices over the past 12 months have risen by 2%... a very modest rise, but a rise nonetheless.
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LunaticFringe wrote:
It's small consolation that we weren't exactly alone in that assumption.
I imagine it would be of little consolation to you... sorry to hear that you are hurting from the decline...
LunaticFringe wrote:
The assumption that values wouldn't decline seriously was really the key issue.
I don't think that where I live we will see much of a decline if at all... we were never really at (direct) risk from the subprime crisis (although some of the banks played on it to raise rates/fees/whatever they could gouge). Even now, house prices over the past 12 months have risen by 2%... a very modest rise, but a rise nonetheless.
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We were basically caught out; just when our fortunes turned and it was necessary to sell, it became impossible to do so. I'd say values here have declined in the area of 35-40% from 2006. And this is nowhere near as bad as places like Florida and Nevada. I've read news stories of areas where values have lost over 70% from the peak.
L u n a t i c F r i n g e
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We were basically caught out; just when our fortunes turned and it was necessary to sell, it became impossible to do so. I'd say values here have declined in the area of 35-40% from 2006. And this is nowhere near as bad as places like Florida and Nevada. I've read news stories of areas where values have lost over 70% from the peak.
L u n a t i c F r i n g e
LunaticFringe wrote:
areas where values have lost over 70%
Ouch... good time to buy in those areas though!!
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LunaticFringe wrote:
areas where values have lost over 70%
Ouch... good time to buy in those areas though!!
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
Yeah, there's no denying it- one man's disaster is another's opportunity. It's a hell of a time to invest if you have the capital. :thumbsup: We hope to recover quickly. We are making pretty significant changes in location/lifestyle and if things go well, we'll recoup in a hurry.
L u n a t i c F r i n g e
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Yeah, there's no denying it- one man's disaster is another's opportunity. It's a hell of a time to invest if you have the capital. :thumbsup: We hope to recover quickly. We are making pretty significant changes in location/lifestyle and if things go well, we'll recoup in a hurry.
L u n a t i c F r i n g e
LunaticFringe wrote:
It's a hell of a time to invest if you have the capital.
I think that's what some others are waiting for in Australia - the ass to drop out of the market so they can swoop in and make a killing... I don't see it happening myself!!
LunaticFringe wrote:
We are making pretty significant changes in location/lifestyle and if things go well, we'll recoup in a hurry.
Awesome... and I wish you the best of luck with that. I assume health issues are now behind you?
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LunaticFringe wrote:
It's a hell of a time to invest if you have the capital.
I think that's what some others are waiting for in Australia - the ass to drop out of the market so they can swoop in and make a killing... I don't see it happening myself!!
LunaticFringe wrote:
We are making pretty significant changes in location/lifestyle and if things go well, we'll recoup in a hurry.
Awesome... and I wish you the best of luck with that. I assume health issues are now behind you?
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
Pretty much. One minor issue has been holding me back for about the last year and a half and keeping me from riding, which would otherwise cure all my ills. :-D I need to get a couple of disks in my neck replaced, and the insurance coverage we've had for the last 7 years or so totally sucks (a big factor in our current predicament). The only option offered is fusion of the vertebrae. Don't know if you know anything about it, but it is not exactly a state of the art fix; irreversible and, at it's heart, really pretty primitive. There is a much better option, been in use in Europe for over a decade, probably there too (artificial disk/disk replacement), but the FDA only approved it for use here I think 2 years ago now, and only a few insurers cover it. However... one of the changes coming down in the next few weeks involves new insurance coverage on a really good plan for federal employees, from one of those few providers. And if it's covered (not sure yet), I definitely made the right choice by waiting for the right fix. :)
L u n a t i c F r i n g e
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Pretty much. One minor issue has been holding me back for about the last year and a half and keeping me from riding, which would otherwise cure all my ills. :-D I need to get a couple of disks in my neck replaced, and the insurance coverage we've had for the last 7 years or so totally sucks (a big factor in our current predicament). The only option offered is fusion of the vertebrae. Don't know if you know anything about it, but it is not exactly a state of the art fix; irreversible and, at it's heart, really pretty primitive. There is a much better option, been in use in Europe for over a decade, probably there too (artificial disk/disk replacement), but the FDA only approved it for use here I think 2 years ago now, and only a few insurers cover it. However... one of the changes coming down in the next few weeks involves new insurance coverage on a really good plan for federal employees, from one of those few providers. And if it's covered (not sure yet), I definitely made the right choice by waiting for the right fix. :)
L u n a t i c F r i n g e
LunaticFringe wrote:
I need to get a couple of disks in my neck replaced
See if they can swap them out for CD's... rofl... Seriously though, fusion is always a last resort for this kind of thing, so I'm sure you have made the right choice... hopefully you can have a replacement, and it all goes well and you are back in the saddle (literally and figuratively) in no time!!
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
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LunaticFringe wrote:
I need to get a couple of disks in my neck replaced
See if they can swap them out for CD's... rofl... Seriously though, fusion is always a last resort for this kind of thing, so I'm sure you have made the right choice... hopefully you can have a replacement, and it all goes well and you are back in the saddle (literally and figuratively) in no time!!
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
_Damian S_ wrote:
See if they can swap them out for CD's... rofl...
There you go... :laugh: :laugh:
_Damian S_ wrote:
hopefully you can have a replacement
Yup - I've already consulted with a surgeon who has significant experience with the replacements, both here and in Europe. Liked the guy, seemed to know his stuff (does fusion, too), and he considered me an optimal candidate for the deal.
L u n a t i c F r i n g e
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_Damian S_ wrote:
See if they can swap them out for CD's... rofl...
There you go... :laugh: :laugh:
_Damian S_ wrote:
hopefully you can have a replacement
Yup - I've already consulted with a surgeon who has significant experience with the replacements, both here and in Europe. Liked the guy, seemed to know his stuff (does fusion, too), and he considered me an optimal candidate for the deal.
L u n a t i c F r i n g e
*fingers crossed*
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What institution raised the interest rate?
Invisible Empire: A New World Order Defined (High Quality 2:14:01)[^] Watch the Fall of the Republic (High Quality 2:24:19)[^] The Truthbox[^]
The Reserve Bank[^] put rates up to 4.25%, I believe. The average home loan is just under 7% right now, and the banks are free to pass on the rise or not.
Christian Graus Driven to the arms of OSX by Vista. Read my blog to find out how I've worked around bugs in Microsoft tools and frameworks.
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LunaticFringe wrote:
how do these people get these loans?
Exactly. That's the biggest issue... financial institutions passing out money hand over fist to people who would "normally" not be able to take out a loan... They have a lot to answer for!! Of course, the flipside is that people seem to want 4 bedroom, 2 bathroom with a pool as their first house these days!!
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
Yes, this guy plainly bought that, for what he spent. But, I would agree it's banks, and not government, that needs regulating, to save stupid people from themselves.
Christian Graus Driven to the arms of OSX by Vista. Read my blog to find out how I've worked around bugs in Microsoft tools and frameworks.
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Yes, this guy plainly bought that, for what he spent. But, I would agree it's banks, and not government, that needs regulating, to save stupid people from themselves.
Christian Graus Driven to the arms of OSX by Vista. Read my blog to find out how I've worked around bugs in Microsoft tools and frameworks.
Christian Graus wrote:
But, I would agree it's banks, and not government, that needs regulating, to save stupid people from themselves.
Absolutely... people should have to demonstrate that they have saved their deposit, and can afford repayments, in order to borrow money... just like the good old days!!
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
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LunaticFringe wrote:
how do these people get these loans?
Exactly. That's the biggest issue... financial institutions passing out money hand over fist to people who would "normally" not be able to take out a loan... They have a lot to answer for!! Of course, the flipside is that people seem to want 4 bedroom, 2 bathroom with a pool as their first house these days!!
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
It used to be like that here in the UK people would lie about their income to get the home they wanted and people would help you lie about it! but now they require 6 months worth of bank statements to begin assessing your affordability to the mortgage
Marc Clifton wrote:
That has nothing to do with VB. - Oh crap. I just defended VB!
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This letter was sent to our local paper in response to the inevitable news that our interest rates have risen again. I bring home $1198.92 a fornight from my wage, the payment to the bank for my home is $2516.00 a month see what is happening in my situation I paying more than a 100% out of my wage,so how many other people are doing it worst than me.RBA and all those who make these decisions do not know what they are doing to the people in this country OR DO THEY. How about a pay rise for the work force who really requires it (the low wage earners)O'no we cannot afford it but this new government can afford two government cars for the couple who just came into government who said they wont bring any burdens on the Tasmanian people,you know, it is not bad, this couple moving into Sth.Hobart together and they require two cars, well done Nick you have really deceived us voters haven't you, hope you can live with it all. This guy makes about $35k. Which is less than the average wage in Australia, but probably indicative of what the majority make. At current interest rates, he must have borrowed $360k to have payments that high. It's possible to buy a house ( ex housing commission ) with a yard for $150k here. Why did he need to spend $360k ( not counting his deposit ) ? I think a price crash will be a good thing overall, housing is probably getting too expensive, even in Australia's most affordable state. But, the real question is, how is it the fault of anyone bar the banks and people who borrow outside their means that a bubble was fed and will eventually burst ?
Christian Graus Driven to the arms of OSX by Vista. Read my blog to find out how I've worked around bugs in Microsoft tools and frameworks.
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This letter was sent to our local paper in response to the inevitable news that our interest rates have risen again. I bring home $1198.92 a fornight from my wage, the payment to the bank for my home is $2516.00 a month see what is happening in my situation I paying more than a 100% out of my wage,so how many other people are doing it worst than me.RBA and all those who make these decisions do not know what they are doing to the people in this country OR DO THEY. How about a pay rise for the work force who really requires it (the low wage earners)O'no we cannot afford it but this new government can afford two government cars for the couple who just came into government who said they wont bring any burdens on the Tasmanian people,you know, it is not bad, this couple moving into Sth.Hobart together and they require two cars, well done Nick you have really deceived us voters haven't you, hope you can live with it all. This guy makes about $35k. Which is less than the average wage in Australia, but probably indicative of what the majority make. At current interest rates, he must have borrowed $360k to have payments that high. It's possible to buy a house ( ex housing commission ) with a yard for $150k here. Why did he need to spend $360k ( not counting his deposit ) ? I think a price crash will be a good thing overall, housing is probably getting too expensive, even in Australia's most affordable state. But, the real question is, how is it the fault of anyone bar the banks and people who borrow outside their means that a bubble was fed and will eventually burst ?
Christian Graus Driven to the arms of OSX by Vista. Read my blog to find out how I've worked around bugs in Microsoft tools and frameworks.
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This letter was sent to our local paper in response to the inevitable news that our interest rates have risen again. I bring home $1198.92 a fornight from my wage, the payment to the bank for my home is $2516.00 a month see what is happening in my situation I paying more than a 100% out of my wage,so how many other people are doing it worst than me.RBA and all those who make these decisions do not know what they are doing to the people in this country OR DO THEY. How about a pay rise for the work force who really requires it (the low wage earners)O'no we cannot afford it but this new government can afford two government cars for the couple who just came into government who said they wont bring any burdens on the Tasmanian people,you know, it is not bad, this couple moving into Sth.Hobart together and they require two cars, well done Nick you have really deceived us voters haven't you, hope you can live with it all. This guy makes about $35k. Which is less than the average wage in Australia, but probably indicative of what the majority make. At current interest rates, he must have borrowed $360k to have payments that high. It's possible to buy a house ( ex housing commission ) with a yard for $150k here. Why did he need to spend $360k ( not counting his deposit ) ? I think a price crash will be a good thing overall, housing is probably getting too expensive, even in Australia's most affordable state. But, the real question is, how is it the fault of anyone bar the banks and people who borrow outside their means that a bubble was fed and will eventually burst ?
Christian Graus Driven to the arms of OSX by Vista. Read my blog to find out how I've worked around bugs in Microsoft tools and frameworks.
When I was going to buy my house and was getting qualified the bank to me I could get 250K. They're out of their minds. I had a budget and a monthly payment I wanted and that was it. This is where I think consumers start to get into trouble. If the bank, who should know best after all, says you can get a loan for X and afford it they're idiots. I all but told them so and left to go to another bank.
Christian Graus wrote:
I think a price crash will be a good thing overall, housing is probably getting too expensive, even in Australia's most affordable state. But, the real question is, how is it the fault of anyone bar the banks and people who borrow outside their means that a bubble was fed and will eventually burst ?
After your initial thread about this that was my conclusion. Even 11 acres in the country side isn't worth $600,000. I can get a lot more in Missouri for that than just 11 acres. It's not really any one person's fault that we have bubbles as near as I can tell. As long as we treat everything as a commodity to be exploited we're going to have bubbles. This includes people via wages and our health care through insurance premiums.
That's called seagull management (or sometimes pigeon management)... Fly in, flap your arms and squawk a lot, crap all over everything and fly out again... by _Damian S_
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Christian Graus wrote:
But, I would agree it's banks, and not government, that needs regulating, to save stupid people from themselves.
Absolutely... people should have to demonstrate that they have saved their deposit, and can afford repayments, in order to borrow money... just like the good old days!!
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
I didn't have a deposit, and my loan is guarenteed. :) Ah, VA Loans. While the rest of the benefits might suck, getting a house has been remarkably effective. With the market fairly stable here we are looking to be okay and maybe upgrade to a nicer place in 2 or 3 years. We need the space with kidlet #2 due soon.
If I have accidentally said something witty, smart, or correct, it is purely by mistake and I apologize for it.
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When I was going to buy my house and was getting qualified the bank to me I could get 250K. They're out of their minds. I had a budget and a monthly payment I wanted and that was it. This is where I think consumers start to get into trouble. If the bank, who should know best after all, says you can get a loan for X and afford it they're idiots. I all but told them so and left to go to another bank.
Christian Graus wrote:
I think a price crash will be a good thing overall, housing is probably getting too expensive, even in Australia's most affordable state. But, the real question is, how is it the fault of anyone bar the banks and people who borrow outside their means that a bubble was fed and will eventually burst ?
After your initial thread about this that was my conclusion. Even 11 acres in the country side isn't worth $600,000. I can get a lot more in Missouri for that than just 11 acres. It's not really any one person's fault that we have bubbles as near as I can tell. As long as we treat everything as a commodity to be exploited we're going to have bubbles. This includes people via wages and our health care through insurance premiums.
That's called seagull management (or sometimes pigeon management)... Fly in, flap your arms and squawk a lot, crap all over everything and fly out again... by _Damian S_
wolfbinary wrote:
When I was going to buy my house and was getting qualified the bank to me I could get 250K. They're out of their minds. I had a budget and a monthly payment I wanted and that was it. This is where I think consumers start to get into trouble. If the bank, who should know best after all, says you can get a loan for X and afford it they're idiots. I all but told them so and left to go to another bank.
But they do know, they can get most of their money back from you, and then in capitalist wonder land take what you bought with it from you when you default, and then re-sell it on loan to someone else who can later default on it, and they can collect the insurance on all of those failed investments. It's like free money. Though to be honest I'm not aware of both defaulting and reselling as well as insurance being used at the same time, I haven't looked, I'm sure someone's had the 'bright' idea.
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I could be pulling this out of my ass, but isn't the general guideline for housing costs keep it under 1/3rd of your income? You know, no where near 100% of it?
Distind wrote:
I could be pulling this out of my ass, but isn't the general guideline for housing costs keep it under 1/3rd of your income?
I've heard that from financial advisers. But on the flip side you'll have realtors telling you to buy the absolute biggest house possible: "You'll be there for years so you'll grow into the payment."
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