Australian sub prime mortgage market.

OK, that's just weird, how did you know? Do you have someone stalking me? I know people who know "people". Do you see dead people?

 

Just checked, and unless you are a tree, it ain't you.

 

Life is still pretty good in the South of France. Not much sign of recession in Monaco when I was there a couple of weeks ago:
http://picasaweb.google.com/bootie.boot/SouthOfFrance2008Visit#

Just a small selection of pics for now... New York ones later.

 

Nice pics. At the lower end of hhe scale I've just sold a small apartment just outside St Trop, 20 metres from the beach, great views etc etc, been on the market 18 months and got back what I paid for it in 2004....lucky I guess?

 

Fitch report.

The top 10 suburbs and towns listed as suffering the most mortgage stress are: Helensvale (Qld), Nelson Bay (NSW), Raymond Terrace (NSW), Katoomba (NSW), Greenacre (NSW), Guildford (NSW), Vaucluse (NSW), Fairfield (NSW), Cessnock (NSW) and St Marys (NSW).

But a finding in the report suggests loans made between 2002 and 2007 are easier to service today than when the loan was first taken out.

"From this point of view if unemployment can remain subdued the Australian mortgage market will continue to perform well," Mr McCarthy said.

http://www.theaustralian.news.com.au/story/0,25197,24709262-12377,00.html

 

Funny old world really. As rates continue to tumble the investor gets hurt and the borrower rewarded.
Only real non-confirming lender left here recently lowered LVRs and increased rates and made servicing on a 2% margin, so if the mortgage rate was 13% the servicing was calc on 15%. I'm still getting 5 to 6 enquiries a day but only 1 or 2 doable, at a price. Top end property worst affected and rents beginning to suffer as more Vendors put property onto rental market cos they won't sell for the price a buyer will pay. Worst I've heard of is a North Shore property with a Registered Value of $1.3m selling at auction for $760K, the silly thing is the Vendor did not have to sell, he's got $7 million portfolio with no mortgage, his Bank withdrew his $300,000 O/D facility and he did not take independent advise, he was panicked by the Bank.

 

Yeah, but what had he paid for it and what's it likely to sell for in 12 months with another 12 months worth of holding costs added on and opportunity costs?

 

that doesn't make sense

 

this doesn't make sense either

 

a one year fixed rate facility is around 4.7% at the moment, that's ****ing cheap! variable rates should be lower than that sought of midway next year.

if the market bottoms out at the same time, it would be very tempting to grab a mill or 10 at say 4% interest fixed, and buy blue chips. that's a lot of stock for very little debt. say the market takes 5 years to double in price, on 10 mill that's $2 mill in interest with the stock worth 20. not a bad strategy.

 

Could happen, after all Queensland is trying to buy the top bit of poor broke old NSW.

http://www.news.com.au/couriermail/story/0,23739,24701379-952,00.html

 

Doesn't anyone want the middle? Or is that where WAX lives?

 

so it IS where Wax lives

 

that's a good idea!

let's all do it.

scud's financial advice is always sound!

 

Unfortunately to many "ifs" there for me. Also to borrow 10mill your gunna need a bit of equity in todays climate IMO.

 

as usual some had nothing good to say, yet did say something.

in reply to b27, lock in a 4% rate for 5 years, and you have 5 years for the market to double. if the market only goes up 20%, you break square. get it right and there is serious money to be made.

 

oh...what a shame...i was ready to move on it.

 

got told 4.8% for one year from westpac on tuesday. look harder...

banks are pretty quick to factor in what the reserve is going to do