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#1

thedigger
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Joined: 01 January 2014
Posts: 586
Member
23 September 2018 12:00 am

Australia has time bomb

https://www.zerohedge.com/news/2018-09- … rly-couple bomb

#2

Jaros
Moderator
From: S.E.Qld., QLD
Joined: 11 August 2013
Posts: 8,378
Moderator
23 September 2018 09:26 am

A couple of years ago my financial advisor was "sacked" by his owner/manager no reasons given. After a fair bit of investigation I was able to gather that he had been outed because of suss investment advice to clients. At one time he was a Westpac Branch Manager in a Brisbane outer suburb. I had his mobile--no answer and email no. --no reply.
I moved my super to ING and been happy since with an allocated pension and some Centrelink help as well.
Have never heard or seen his name since. smile


Lottsa hope :F1A4M2, Exterra 705 Gold, Ace 250, Aldi detector, ? detector, Garmin Etrex30, 2 sieves,2 pans,2 sluices, Nugget sniffing Cocker Spaniel. X-Pointer PI by Deteknix, Nokta RS Pinpointer, Jobe Knife, Leschke Shovel, Pro-swing 45 Harness, Treasuremate 11 Amp.Gurney gusunder. VK4NLS

#3

aussiefarmer
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Joined: 26 July 2015
Posts: 2,825
Member
23 September 2018 10:05 am

The elderly couple is at fault as much as the bank. If they are too lazy to check the value they are poor bussiness people .
People always windge the bank wont loan them money or they lie about their income / spending to get a loan , they use emotional blackmail against the bank staff to get the loan and then when they find they cant keep upto the repayments they blame the banks .
People need to take responsibility for their actions.


Wish in one hand and poo in the other , See which one fills up first !

7 users like this post: Keitzy, Rockhunter62, ctxkid, provari, goldwright, DropBear, savage bitter

#4

Goldfreak
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Joined: 13 May 2017
Posts: 900
Member
23 September 2018 10:25 am

I have never been offered an easy loan by the bank except they keep upgrading my credit card limit. Last time I went to the bank to see what I could borrow to build my first home on a empty block I paid for in cash they told me I don’t qualify because my 1500 per week seasonal job lasts just under 6 months and my second seasonal job also lasts just under 6 months. Strangely enough had I been on the doll they would have leant me the money because they would class it as a guaranteed income off course I can’t get the doll because I saved too much. If I want to borrow money I would have have quit my jobs, spend my savings and get on the doll playful

3 users like this post: aussiefarmer, Gem in I, savage bitter

#5

Nuggetbuster
Gone Walkabout
Joined: 20 October 2014
Posts: 529
Gone Walkabout
23 September 2018 10:27 am

Equity maaaate .

The global financial crisis in 2008 should have been a warning to Australia.

Instead, the banks and real estate industry bodies here were given the green light to do what they want (with explicit help from the govt), and it looks like it may all be finally unravelling now - just as it started to in late 2008 before emergency action was taken (extension of first home buyes & builders grants, banks using "independent" mortgage brokers like never before, economic stimulus package handouts - remember the "free" $1000 bonus to keep people spending, to stop the economy from tanking?)

I don't think people will be able to use the imaginary equity in their houses to provide a line of credit to do the grocery shopping (or buy a new car, holiday, clothes, etc.) for much longer.

Last edited by Nuggetbuster (23 September 2018 10:28 am)

2 users like this post: grubstake, Gem in I

#6

Whisp
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From: Nowra, NSW
Joined: 10 March 2017
Posts: 394
Member
23 September 2018 01:17 pm

I hate banks with a passion, nothing but unprincipled thieves and liars. If I can't pay cash money for it then I don't need it, I paid cash money for my house and for my cars and motorcycles.


NB: This post is a natural product. The slight variations in spelling and grammar enhance its individual character and beauty and are in no way to be considered flaws or defects.

3 users like this post: sulphide, thedigger, diggit

#7

Danny13
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Joined: 01 May 2016
Posts: 2,718
Member
23 September 2018 02:09 pm

Jaros wrote:

A couple of years ago my financial advisor was "sacked" by his owner/manager no reasons given. After a fair bit of investigation I was able to gather that he had been outed because of suss investment advice to clients. At one time he was a Westpac Branch Manager in a Brisbane outer suburb. I had his mobile--no answer and email no. --no reply.
I moved my super to ING and been happy since with an allocated pension and some Centrelink help as well.
Have never heard or seen his name since. smile

To make things worse , there is no formal training/ education needed to become a financial planner or adviser - 6 week course is all that is needed and you can be out in charge of millions of dollars of client funds. Seen many horror stories .


GPX5000, CTX3030, Sovereign GT garrett pointer, harness.

#8

OldGT
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Joined: 10 May 2017
Posts: 540
Member
23 September 2018 05:27 pm

The article if true works out under 70k pa (inflated on application) for a sizeable loan. Given the estimated age of the couple I could guess at the loan term..edit further article states term.. I've had many loans and been through a few dozen loan applications and the figures seem really off unless there was a sizeable deposit involved.

I'm on neithers side here, both parties were letting their ambitious drive get in the way of solid reasoning, and ending as you would expect. Bit hard to be sympathize, we all have to live by our actions. The fact they were declined initially should have been the moment it could have all been avoided.

Last edited by OldGT (23 September 2018 05:35 pm)

2 users like this post: aussiefarmer, Gem in I

#9

Nuggetbuster
Gone Walkabout
Joined: 20 October 2014
Posts: 529
Gone Walkabout
23 September 2018 06:06 pm

OldGT wrote:

The article if true works out under 70k pa (inflated on application) for a sizeable loan. Given the estimated age of the couple I could guess at the loan term..edit further article states term.. I've had many loans and been through a few dozen loan applications and the figures seem really off unless there was a sizeable deposit involved.

I'm on neithers side here, both parties were letting their ambitious drive get in the way of solid reasoning, and ending as you would expect. Bit hard to be sympathize, we all have to live by our actions. The fact they were declined initially should have been the moment it could have all been avoided.

That's the point ... People have been lent money that they shouldn't have been lent.

1 user likes this post: savage bitter

#10

aussiefarmer
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Joined: 26 July 2015
Posts: 2,825
Member
23 September 2018 06:25 pm

It does read like the bank and real estate possibly even the the vendor were playing dirty , but if your going to spend six figures that you dont have, you are a fool if you dont do your own homework.

The amount of abuse bank staff cop when they decline a loan is shocking , i have friends that are loans officers, they have a standard set of questions and people just straight out lie about their income and spending to get a loan and when they get declined they abuse the bejesus out of the staff and go try the next bank.

Australias major banks are amoungst the highest regulated lenders in the world but as with any large company there will always be some dodgy staff.


Wish in one hand and poo in the other , See which one fills up first !

#11

OldGT
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Joined: 10 May 2017
Posts: 540
Member
23 September 2018 07:08 pm

Yeah they still took the loan knowingly....I mean who could deep down say everything would be fine knowing you were declined the intial loan and then approved all of a sudden later? That right there would tell me they were right on the edge of their capacity and went ahead any way. Loans are approved by the banks, but don't become binding until the applicants sign off to accept the terms and contract document. Unless post signage the financial details were fudged then the couple is at fault here plain and simple.

It's typical of people blaming someone else for a poor decision. Were they deceived or subject to fraudulent practice? Perhaps. Did they accept the loan anyway...of course they did. And when it all turned out badly suddenly it's not their fault.

If they got "justice" because of fraudulent dealings on behalf of the bank then good luck to them.

#12

thedigger
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Joined: 01 January 2014
Posts: 586
Member
23 September 2018 11:19 pm

From what I take from the story,is how many of these loans are out there.
Seems to me there is a lot of people who are going to face the music.

2 users like this post: grubstake, aussiefarmer

#13

Nuggetbuster
Gone Walkabout
Joined: 20 October 2014
Posts: 529
Gone Walkabout
24 September 2018 08:52 am

thedigger wrote:

From what I take from the story,is how many of these loans are out there.
Seems to me there is a lot of people who are going to face the music.

More than most people think. We have always been told that Australia is different, that "our" banks don't do that sort of dodgy stuff.

Well, the Royal Commission has made public just what the banks have actually been doing, even whilst lying to everyone. And no doubt it's just the tip of the iceberg.

Carnage will ensue... Unless they do what they did after the GFC and legalise another illegal scheme to keep the music going for a while longer

2 users like this post: Gem in I, grubstake

#14

ctxkid
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From: Up Ship Creek
Joined: 12 April 2018
Posts: 1,467
Member
24 September 2018 08:54 am

Nuggetbuster wrote:

That's the point ... People have been lent money that they shouldn't have been lent.

they shouldn't lie to get it wink


........................................Such is life...............................................
Oldest Copper coin 1799 left seated half penny, Oldest Silver 1834 Shilling

#15

Nuggetbuster
Gone Walkabout
Joined: 20 October 2014
Posts: 529
Gone Walkabout
24 September 2018 09:25 am

ctxkid wrote:
Nuggetbuster wrote:

That's the point ... People have been lent money that they shouldn't have been lent.

they shouldn't lie to get it wink

Very true. And they shouldn't be encouraged to lie to get it, either.

Also, take the lying out of the equation and you still have irresponsible lending (entrapment):

"Low doc? No doc? Low income? No income? No problem!"

I imaging that in many cases where the borrower has hesitations, they ultimately believe that if the lender is willing to "give" then the money, then the lender believes that the borrower must be able to pay it back - after all the lender is supposed to be the expert in faniccial matters.

Last edited by Nuggetbuster (24 September 2018 10:08 am)

3 users like this post: grubstake, aussiefarmer, thedigger

#16

Nuggetbuster
Gone Walkabout
Joined: 20 October 2014
Posts: 529
Gone Walkabout
06 December 2018 10:06 pm

https://www.businessinsider.com.au/aust … te-2018-12

'Risks are on the downside': Why Australia's housing downturn could see the RBA cut rates again

AMP Capital says Sydney and Melbourne home prices could fall more than the 20% level it currently anticipates.

Given the risk of a deeper downturn, it says the next move in the RBA cash rate may not be higher after all.

Like other forecasters, it remains concerned about the potential for the housing downturn to spillover into weaker household spending.

Australia will receive updated data on household consumption and retail sales later this week.

#17

Nuggetbuster
Gone Walkabout
Joined: 20 October 2014
Posts: 529
Gone Walkabout
06 December 2018 10:07 pm

https://www.businessinsider.com.au/aust … te-2018-12

'Risks are on the downside': Why Australia's housing downturn could see the RBA cut rates again

AMP Capital says Sydney and Melbourne home prices could fall more than the 20% level it currently anticipates.

Given the risk of a deeper downturn, it says the next move in the RBA cash rate may not be higher after all.

Like other forecasters, it remains concerned about the potential for the housing downturn to spillover into weaker household spending.

Australia will receive updated data on household consumption and retail sales later this week.

#18

Trusted
Member
Joined: 19 August 2018
Posts: 64
Member
07 December 2018 01:43 am

At the end of the day, the banks really don't care about customers, they are just a number and $$$.
If you can't keep up your payments, then the bank still gets their $$$.
It's the government's fault for letting the banks to keep getting away with making a killing, with money and people.

#19

Rafter
Banned
Joined: 10 December 2018
Posts: 19
Banned
10 December 2018 04:16 pm

WRONG???!

House prices go up.

Bought mine in 79 and paid 23.000. now it's worth 850.000 plus! Can't tell me they dont go up

#20

Swinging & digging
Member
From: Rowville, VIC
Joined: 29 March 2014
Posts: 470
Member
10 December 2018 05:39 pm

Rafter wrote:

WRONG???!

House prices go up.

Bought mine in 79 and paid 23.000. now it's worth 850.000 plus! Can't tell me they dont go up

House prices rise in dollar terms, a good part of it is rising inflation, the average house price in Melbourne in 1980 was around $32,000 to $35,000.
Wages were less and cost of living was less.

From 1997 to last year house prices rose dramatically, we have had low inflation and low interest rates as well.
Some suburbs and areas do better than others in terms of price growth. Until APRA, banking enquiry we have
had easy credit. Now that has all changed, not looking good ahead, GFC round 2 set to arrive.

First home buyers are eagerly waiting for the doom sayers predictions of falls of 40 -50% in home values.
My own perception is there will be very few winners under what,s predicted, best to debt free if you are able to.


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