Ken October 14, 2009

What would they know,apart from going out of their way to burn broker business .Know doubt hoping the market will climd ,to cover all their Lo Doc underwriting ROFL.

Broker man October 14, 2009

Agree them and their Gemworth mates,the rep is banned from our office.As if they have no idea of what goes on.

Savvy Investor October 15, 2009

The property spruikers are out en-masse as the exit of FHO and removal of stimulus and possible removal of the Government Guarantee is about to really hit the banks. Only an increase in new buyers (as IMO experienced buyers don’t rush in because of hype - they evaluate each opportunity based on its merit as each is different) will save their outrageous profits.

I fully expect to see more of this sort of “drive the market herd”. You will constantly hear “it will soon be too late”, “you are missing out”, “you absolutely need to buy now as the Chinese/US/Korean/Other are buying up big time and ‘driving up’ the property prices”. Notice this was very FHB focused before and with those suckers having fallen for it they need fresh blood. If enough people fall for this they will of course succeed in driving up demand but it will be based on greed and lies and like all such bubbles will eventually be seen for what it is causing the collapse and the carnage that follows. When property exceeds 5 times average weekly earnings it is statistically the time they are ripe for a correction. In Vic and NSW we have hit almost 9 times AWE (at our peak) and property prices have only fallen 10 to 20 percent (again regardless of what the fact that the REIV and others with an interest in selling property are trying to tell us i.e. that prices were flat or have been increasing marginally in the last 18 months).

Savvy investors (pardon the pun) understand that trillions of dollars lost from the system means values are way of out step with reality and people are in a state of barely concealed panic. Unemployment is definitely on the increase regardless of what official figures would have us believe and coming up to Xmas I expect to hear even more of the other ‘R” word as this it the time businesses traditionally shed lots of staff (it is the season of giving - Retrenchments that is).

Mae October 15, 2009

Well talk to others and they see the market dropping in value.

Jeremy October 15, 2009

It is hard to see Australian property achieving this sort of growth without further government stimulus. By that I mean rent subsidies or similar.

brizbroker October 21, 2009

We have the lowest assessment rates we’ve had in many years and as we all know, if the RBA increases rates as anticipated, lenders assessment rates will also increase. Credit Card Rates will probably increase too. Oil prices are increasing again which will mean more expensive petrol, and so on. There will likely be less net disposable income on any lenders calculators, so if anything, borrowers capacity will decrease in relative terms over coming months. Has anyone been writing alot of deals in the last year where you had significant surplus capacity on the servicing calcs? And what of valuers who are conservative and lenders maximum LVR’s?… will the necessary equity be available to investors to facilitate investment property becoming popular again? It’s difficult to see where the money is going to come from to fuel a 20% increase. Having said that, stranger things have happened.