Thread: Fears of housing 'fire sale' as interest-only loans roll into principal plus interest

Originally Posted by Eevo

not such a bad idea given the interest on mortgages, compared to credit cards.

All Debt is expensive regardless of how you get the loan.
If you sat down and worked out Exactly what the compound interest, the debt insurances and all the different fees that your loan was going to cost you over the lifetime of your loan you would be Horrified.

I have a nephew that bought a house when he was only 19 and single, By the time he was 25 he pretty much had the mortgage paid off because he was very careful with his money and paid a house payment weekly instead of monthly.
He then got married and had a couple of kids, changed jobs a couple of times and for various reasons refinanced the house, He is now in the same old house that he owns bugger all equity in and is now struggling to pay the monthly payments let alone pay them weekly.
He is now 38 and owes about 2 times the amount that he owed when he first bought the house nearly 20 years ago So like I said there is No free lunch and even a "Cheap" loan can cripple you.

Originally Posted by trout1105

All Debt is expensive regardless of how you get the loan.
If you sat down and worked out Exactly what the compound interest, the debt insurances and all the different fees that your loan was going to cost you over the lifetime of your loan you would be Horrified.

its not excessive. im quite happy spending the banks money.

your trading money for experience. there is more in this world than money.

Originally Posted by scarry

x2

but the country would be in an absolute mess.

Just imagine the 'fire sales'

so retirees have to suffer for the good of the rest.

Then there are those that fall into the trap of finance like the interest free sales with the likes of Hardly normal. they get you on the interest free and then after you paid it off they provide you with a credit csrd so you can be tempted to spend money you don't have. max up on that along with high interest and make payments on the never never.

Incidentally, We once bought a leather lounge from a store interest free over 24 months. instead of paying cash, we paid it off but there was a $2.50 per month accounting fee that they don't tell you about initially. Then we got sent a GE money credit card which we really didn't need or want. Then 12 months later we got a $50 bill for the annual credit card fee. WTF $50 for something we never asked for in the beginning. Then the hassel of trying to cancel the card , they don't like to cancel your account. Lots of irate phone calls to them eventually got it cancelled and the fee wiped off. Never again

Originally Posted by Roverlord off road spares

so retirees have to suffer for the good of the rest.

You will not find a lot of sympathy from the current generations. We have luxury items such as televisions and electronics very cheaply ... Even cars, the cheapest they have ever been. boomers had it hard. However they had, free schooling, job security, biggest boom times in pretty much recorded history. If they were careful most will have retired with a million in super .... and possibly a rental house to two. They had state owned, power, water, public transport, telecomunication, gas.... They used all of the public asset my grandparents worked hard to build ... the public halls, the public pools, the university systems.

I left high school just as the "recession we had to have" ... happened. Lucky me, I hit the HECs scheme and came out of university owing a ****load of money just in time for the tail end of the "recession we had to have" .. and spend years earning bugger all trying to pay off HECs (and supplementary loans as well for those crazy enough not to read the crazy print .... and decide starving was certainly preferable to taking those out). ...

Around this time the boomers to desperately try to get rid of everything they no longer wanted or needed. Bye bye public halls... Try desperately to close and bulldoze all the pools each year. Yay, Just in time for them to have a nice big fire sale. So now EVERYTHING is so bloody expensive. Private companies now "own" the power, the water, the sewerage, the gas ..... A part of the reason housing is so expensive. Is the boomers didn't like paying so much to keep there investment housing ... SO they implemented negative gearing ..... Yay ... cheaper houses galore for those that were already in the market and approaching retirement so had plenty of disposable income for probably the first time in their lives (of course the main reason for such expensive housing is a combination of negative gearing and the HUGE number of immigrants each year. If we import a couple of hundred thousand each year.... we need too house them!).

Every generation has its own problems. I wonder what the next generations will be ?

seeya,
Shane L.

Originally Posted by Eevo

its not excessive. im quite happy spending the banks money.

your trading money for experience. there is more in this world than money.

Yep HEALTH IS WEALTH , the rest comes a distant second..

Cheers Ean

Originally Posted by Ean Austral

Originally Posted by Eevo

its not excessive. im quite happy spending the banks money.

your trading money for experience. there is more in this world than money.

Yep HEALTH IS WEALTH , the rest comes a distant second..

Cheers Ean

hmm, i was thinking land rovers....

Originally Posted by Eevo

hmm, i was thinking land rovers....

When you wake up 1 day and you have turned bright red basically over night and 2 days later you skin starts peeling off , the last thing you are thinking about is money or land rovers.

Cheers Ean