smit2100 Posted 31March, 2020 Report Share Posted 31March, 2020 21 hours ago, LeeM said: @smit2100 Ta mate We're not part of the big 4 banks, and it was our bank who contacted us to see what they can do for us which I thought was pretty good. We've never had a problem with them, and they always pass on any interest rate drops the reserve bank does, so we feel theyll help us out if the need arises. I'd rather not freeze our payments, as I don't want to end up paying a shed load more interest, yet as our mortgage is around $150k and a recent property value of between $500-550k (a developer has offered us near the top end there recently), so one option to me would be to sell the place, buy elsewhere and be mortgage free with a few dollars in the bank (the missus is dead against that one as she works 3 minutes from home as I do and we both like living in this area), yet we're hoping the bank would advance us up to $50k to see us through this. Regardless, we'll work it out somehow if it all turns to shit I suspect you'd be in the minority in terms of getting a call on how your going in relation to your home loan On that note, by no means financial advice but just sharing a view that's served me well from the go get on having had a few home loans over the journey is having at least the following features: 1) access amounts based on maximum LVR without paying mortgage insurance 2) a totally unrestricted linked offset account 3) competitive variable interest rate and annual fee. I don't tie myself to a bank, but treat a loan like car insurance on your P car. Periodically shop around for prices and test what it's agreed value is worth ( when house prices are on the up ask the banks what its worth to them, but might cost you a few pineapples to see what the bank thinks and some extra paperwork). So who will lend the most for a competitive rate / annual fee with at least the above features gets my business. ( I prefer additional sub accounts as well) Say one had a new mortgage account with above features and a max loan facility of 400k ( 80% x 500k based on a bank valuation) and one met income serviceability requirements based on payslips from last week (full) and a mortgage offset account. . One would have have 400k cash. Say they had an old loan worth 150k. That gets paid out in full and may cost say 152k. Now we have 248k cash and owe 400k. What if that 248k is pumped into the mortgage offset account. Net net on paper one would think you owe the bank 152k The 248k in the mortgage offset account earns the same interest rate as the mortgage rate on the 400k loan. Maybe not much difference in payments from the old loan and this new loan. But being able to tap into 248k for a rainy day ( s$%^ storm like now) could reduce the anxiety levels. Any salary gets pumped directly into the offset account and the mortgage payments are automatically transferred from the offset account. Ideally live off a 55day interest free credit card and use the offset account to pay that off. Just a view but that offset account is a very handy account to have in this covid-19 shit storm if you: a) have zero income next week after getting the loan. The slightly higher interest rate and maybe higher mortgage payments is like paying for insurance. You would need to blow through 248k in you offset account before asking for a deferral on a loan repayment and maintaining you credit rating in tact. When you get to 100k left may need to go on a packet noodle and a canned tuner diet. b) will go a long way if you see a potential 996 / 997 bargain. Eg negotiate hard with a fist full of offset account dollars with Symsy inspired low ball offers. So 55k at 3% for a year for a 996 is a circa $1.65k interest penalty cost. Should be able to sell an aircooled within a year without a fire sale to offset some / all the 56.65k. Didn't your Mrs say the aircooled stays. I reckon you need to follow the lead from MFX and throw a set of 996 keys over to the Mrs. Wouldn't be surprised if you get a can't see the fried headlights when behind the wheel and its a lot easier and smoother car to drive than the aircooled and got some extra go. How much is your aircooled worth again? So just a helicopter view but based on your post and something to mull over when we get through this corona virus disaster or right now with your bank with non discounted pay slips in hand based on last week, but it appears you have equity in your house that mostly benefited the bank. Its been locked in over time and you can't access it at you leisure because of the loan type. . PS assume above is down graded to 300k based on income constraints/ house value. That could give a 150k buffer assuming regular income streams can be shown that hits serviceability metrics I just heard Shane Elliot CEO of Anz saying they had the best week for refinance applications last week that he can everv remember. I wonder how many of those are applying to move from a straight loan to one with an offset account facility and at the same time tapping into built up home equity? . In relation to the topic of this thread, that concerns me. Eg shed loads of extra punters tapping into built up home equity for sideline cash to jump on cheap aircooled cars at unprecended levels we have not seen before. q1w2e3r4 got my ears pricked up with talk of $140k boosted 993's. I can feel the school of symsy reverse psychology play to secure one in desperate times is warranted at that those asking levels, eg 150k plus offers on 140k asking which pushes me over my buy now price compared to those with much higher cash reserves that just want one and offers are sight unseen.( is a ppi an essential service as it would be required by me) Quote Link to comment Share on other sites More sharing options...
LeeM Posted 31March, 2020 Report Share Posted 31March, 2020 Cheers @smit2100 much appreciated. The bank 'hardship' people called me last night for a chat, and said her department can only advise that we can freeze our mortgage payments until 1st of January '21, so I'll have another chat with someone else later. I'll reply later. In the meantime, this might be of interest. I haven't watched it as yet as I don't have time (getting ready for work) 3legs 1 Quote Link to comment Share on other sites More sharing options...
3legs Posted 1April, 2020 Report Share Posted 1April, 2020 Even though the interviewer wasn't that optimistic, I am. The Doctor I thought was as well, although one thing that worried me was when he was asked what would happen if US or china develop a vaccine first would it be available to the rest of the world he didn't answer with a yes or no. Worrying. He gave a reasonable scenario answer but not what you would want to hear if you didn't live in those countries. Quote Link to comment Share on other sites More sharing options...
Coastr Posted 1April, 2020 Report Share Posted 1April, 2020 Been thinking about this topic. i actually think this could create another upward swing in prices. Hear me out. The last upswing happened around ‘12/13 and coincided with the last of the recovery and bailouts of the 08/09 crisis. That was a much bigger deal as there was a lot of bad investment that had to get written down. this time we gave a lot of people out of work or drawing savings to live, so toys get dumped and new ones don’t get bought. But the response from govts is the same - drop rates and throw cash around. This inevitably triggers inflation when thins recover and hard assets (collectibles) always go up in price during these periods. While some people are dong it tough there are also others quietly making out like bandits, and others using cash hoards to pick up investments at fire sales. We will see in 12 mths time but I think there’s a good chance that P cars will remain steady with a few bargains and then pick back up strongly as cash floods in. sleazius 1 Quote Link to comment Share on other sites More sharing options...
wilson59 Posted 1April, 2020 Report Share Posted 1April, 2020 The air cooled cars really seem to be dropping in price other than the long hood dreamers they will just sit on the market until they are given a realistic price Quote Link to comment Share on other sites More sharing options...
bear924 Posted 1April, 2020 Report Share Posted 1April, 2020 On 31/03/2020 at 06:25, DJM said: How so? FIRB approval has been required for years, they just reset the threshold. An offshore buyer simply needs to apply and if FIRB approves, the deal goes through as normal. As it should..... My understanding is there are more offshore buyers from UK and US than China but a little racism never hurt anyone, right......🤔 My reference to Chinese buyers is because that's the reference used in the ABC article. Quote: The ABC understands members of the Government believe the changes will prevent China from taking advantage of Australia's weak financial position to snap-up strategically important assets. 3legs and Troubleshooter 2 Quote Link to comment Share on other sites More sharing options...
XLR8 Posted 1April, 2020 Report Share Posted 1April, 2020 Is it just me, or has there been a lot of 944s listed on Gumtree in the past week or so? 3legs 1 Quote Link to comment Share on other sites More sharing options...
Coastr Posted 1April, 2020 Report Share Posted 1April, 2020 It’s not racist to limit the business with a communist government with a particularly poor record on human rights, free press, free speech and transparency. If the policies don’t apply equally to Taiwan there is zero racial input. Spets87 1 Quote Link to comment Share on other sites More sharing options...
Troubleshooter Posted 1April, 2020 Report Share Posted 1April, 2020 13 hours ago, bear924 said: My reference to Chinese buyers is because that's the reference used in the ABC article. Quote: The ABC understands members of the Government believe the changes will prevent China from taking advantage of Australia's weak financial position to snap-up strategically important assets. Also the most relevant from your referred article Mr Bear is this …. "Chair of the Parliamentary Joint Committee on Intelligence and Security, Liberal MP Andrew Hastie, said the move was designed to protect Australian companies from predatory behaviour. Aussie businesses have taken some big hits through the COVID-19 pandemic," he said. "We need to protect our most vulnerable from authoritarian states angling for bargains through their business fronts". Quote Link to comment Share on other sites More sharing options...
3legs Posted 1April, 2020 Report Share Posted 1April, 2020 and just to add fuel to the fire here is an article from todays news.com.au You want to call me racist go ahead. Me, I call it reality. https://www.realestate.com.au/news/coronavirus-to-drive-more-australian-homes-into-foreign-hands/?rsf=syn:news:nca:news:spa Quote Link to comment Share on other sites More sharing options...
Troubleshooter Posted 1April, 2020 Report Share Posted 1April, 2020 Yanks, Poms and Belgians love this country, I meet heaps of them everywhere I (used to) go ….. Sick of this isolation eating 2 minute noodles - I'm hopping in the 911 to Yanktown to get me a hotdog, on to Pommytown for a 'alf cod n chips and then to Belgiumtown to pick up some chocolates. When the China virus backs off I'm listing my new subdivision and marketing mostly to the Yanks n Poms and also towards the Belgians ….. Quote Link to comment Share on other sites More sharing options...
Rod C Posted 2April, 2020 Report Share Posted 2April, 2020 15 hours ago, XLR8 said: Is it just me, or has there been a lot of 944s listed on Gumtree in the past week or so? Yes have certainly noticed that. Almost be the front runner for coming out of the woodwork. Possible second place 991 GT3. Quote Link to comment Share on other sites More sharing options...
3legs Posted 2April, 2020 Report Share Posted 2April, 2020 And some are asking for ridiculous prices and even the auto's seemed to have increased by 50%. Quote Link to comment Share on other sites More sharing options...
sleazius Posted 2April, 2020 Report Share Posted 2April, 2020 That is probably the dealers trying to sell something (991 GT3). Cash crunch incoming. Quote Link to comment Share on other sites More sharing options...
G5032 Posted 2April, 2020 Report Share Posted 2April, 2020 10 hours ago, Troubleshooter said: Yanks, Poms and Belgians love this country, I meet heaps of them everywhere I (used to) go ….. Sick of this isolation eating 2 minute noodles - I'm hopping in the 911 to Yanktown to get me a hotdog, on to Pommytown for a 'alf cod n chips and then to Belgiumtown to pick up some chocolates. When the China virus backs off I'm listing my new subdivision and marketing mostly to the Yanks n Poms and also towards the Belgians ….. I’m in the south east of Melbourne and I haven’t seen to many Yanks or Belgians sticking their hands up at house auctions in the hood.... DJM 1 Quote Link to comment Share on other sites More sharing options...
DJM Posted 2April, 2020 Report Share Posted 2April, 2020 20 minutes ago, G5032 said: I’m in the south east of Melbourne and I haven’t seen to many Yanks or Belgians sticking their hands up at house auctions in the hood.... Haha I’ll challenge any of you to exclude Chinese from the sale of your own house. Plenty of true blue aussies have sold the farm for more $$ than they expected. Just don’t admit it to the boys down the pub 😂 vinnytang and smit2100 2 Quote Link to comment Share on other sites More sharing options...
Coastr Posted 2April, 2020 Report Share Posted 2April, 2020 8 hours ago, DJM said: Haha I’ll challenge any of you to exclude Chinese from the sale of your own house. Plenty of true blue aussies have sold the farm for more $$ than they expected. Just don’t admit it to the boys down the pub 😂 That right there is the stone cold truth. It’s a prisoners dilemma all over again. Quote Link to comment Share on other sites More sharing options...
3legs Posted 2April, 2020 Report Share Posted 2April, 2020 Hey DJM you are of course 100% accurate however and maybe I'm being a bit naive here but I wonder how many houses were sold to the chinese that the seller was thinking it was being bought by someone else. In other words sold through a non chinese 3rd party on behalf of that chinese buyer either to get around existing foreign ownership laws or to avoid a non sale by someone who didn't want to sell to a foreigner whether it be a chinese person or someone of another nationality. Quote Link to comment Share on other sites More sharing options...
firstone Posted 3April, 2020 Report Share Posted 3April, 2020 Why do you care about the Chinese bro? Anyone that knows the big boy rules can play. DJM 1 Quote Link to comment Share on other sites More sharing options...
3legs Posted 3April, 2020 Report Share Posted 3April, 2020 It's not so much about the chinese it's more about foreign ownership. Maybe I'm just an old fart still trying to live in an Australia that was once proud that things were made in Australia and that people cared about Australia being owned by Australians (that actually lived here) and not owned by some faceless foreign based corporation. I know I'm dreaming and probably being a little naive but a dream never hurt anyone 😢 Troubleshooter and LeeM 2 Quote Link to comment Share on other sites More sharing options...
wilson59 Posted 3April, 2020 Report Share Posted 3April, 2020 24 minutes ago, 3legs said: It's not so much about the chinese it's more about foreign ownership. Maybe I'm just an old fart still trying to live in an Australia that was once proud that things were made in Australia and that people cared about Australia being owned by Australians (that actually lived here) and not owned by some faceless foreign based corporation. I know I'm dreaming and probably being a little naive but a dream never hurt anyone 😢 I’m all aboard that train . Think local and for me it is about Chinese . 3legs 1 Quote Link to comment Share on other sites More sharing options...
Gavn Posted 3April, 2020 Report Share Posted 3April, 2020 I'd like to think this little event will make a few companies diversify their production locations & I think there's great value in making things onshore. I'll happily pay more for a locally produced product than one made in china & I'm sure I'm not alone. I also know that talk is cheap and over the last 20 years everyone has voted in exactly the opposite direction with their purchases.....might that change? I hope so. 3legs and LeeM 2 Quote Link to comment Share on other sites More sharing options...
LeeM Posted 3April, 2020 Report Share Posted 3April, 2020 That might change, yet the mentality of the government, regardless of who is in power, will not. Regardless of what we all buy, we all want the cheapest, so when Australian made products are twice the price of imported goods, what's going to happen? Aussie businesses went overseas because of their costs skyrocketing and the government getting even more greedy than normal, so once this virus shit is under control and things are back to reasonably normal, we'll go back to bringing it all in from China and buy the same shit from the same place and still whinge that we hate China 3legs 1 Quote Link to comment Share on other sites More sharing options...
Pedro Posted 3April, 2020 Report Share Posted 3April, 2020 46 minutes ago, 3legs said: It's not so much about the chinese it's more about foreign ownership. Maybe I'm just an old fart still trying to live in an Australia that was once proud that things were made in Australia and that people cared about Australia being owned by Australians (that actually lived here) and not owned by some faceless foreign based corporation. I know I'm dreaming and probably being a little naive but a dream never hurt anyone 😢 But you purchased a German car ? 3legs and DJM 2 Quote Link to comment Share on other sites More sharing options...
3legs Posted 3April, 2020 Report Share Posted 3April, 2020 Got me Pedro 😁 To be fair I've had my fair share of Holdens and Fords over the years as well as owing a Porsche at the same time so that's my excuse and I'm sticking to it😂 Quote Link to comment Share on other sites More sharing options...
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