Post to Facebook on 11/5/2018 at 9:27 PM
Commenting on “Housing slump set to be the largest in nearly 40 years”
https://www.domain.com.au/money-markets/housing-slump-mortgage-lending-plunges-further-weakness-expected-20180511-h0zxxu/
All the gloomy news just resembles the grey sky in Melbourne. When I was talking about housing slump few months ago, I was more like those who had been predicting the Coming of the End of the World.
There are always more followers than initiators and leaders. Those who follow last will suffer the most.
The recent Royal Commission on Banking Industry reveals some unethical practices by some lenders. That explains why so many borrowers were able to obtain loan so easily, and the number drops substantially now.
The outlook for mortgage lending can only get worse if the “rumour” of removal of negative gearing continues to in the news. It deters potential property investors to enter the market, and experienced one to back off.
The housing slump is also an opportunity for genuine firsthome buyers, if you have the initial deposit. Do be brave to approach your bank managers or lenders to discuss the possibility of getting a loan.
Just in case you have not come across my blog on Bank Mum-and-Dad, I briefly mention here. If your mum-and-dad have some idle money, borrow some from them top up the deposit. The more you have for the deposit, the better the chance you get a mortgage.
If you obtain finance from Bank Mum-and-Dad, do go to a solicitor to prepare a legal document stipulating how you are going to repay the money in future.
Thank you for reading.
https://www.domain.com.au/money-markets/housing-slump-mortgage-lending-plunges-further-weakness-expected-20180511-h0zxxu/
Commenting on “Housing slump set to be the largest in nearly 40 years”
https://www.domain.com.au/money-markets/housing-slump-mortgage-lending-plunges-further-weakness-expected-20180511-h0zxxu/
All the gloomy news just resembles the grey sky in Melbourne. When I was talking about housing slump few months ago, I was more like those who had been predicting the Coming of the End of the World.
There are always more followers than initiators and leaders. Those who follow last will suffer the most.
The recent Royal Commission on Banking Industry reveals some unethical practices by some lenders. That explains why so many borrowers were able to obtain loan so easily, and the number drops substantially now.
The outlook for mortgage lending can only get worse if the “rumour” of removal of negative gearing continues to in the news. It deters potential property investors to enter the market, and experienced one to back off.
The housing slump is also an opportunity for genuine firsthome buyers, if you have the initial deposit. Do be brave to approach your bank managers or lenders to discuss the possibility of getting a loan.
Just in case you have not come across my blog on Bank Mum-and-Dad, I briefly mention here. If your mum-and-dad have some idle money, borrow some from them top up the deposit. The more you have for the deposit, the better the chance you get a mortgage.
If you obtain finance from Bank Mum-and-Dad, do go to a solicitor to prepare a legal document stipulating how you are going to repay the money in future.
Thank you for reading.
https://www.domain.com.au/money-markets/housing-slump-mortgage-lending-plunges-further-weakness-expected-20180511-h0zxxu/
