Of course. But people untroubled by this in the past have found themselves in the crosshairs recently. Things change.
Thredbo has extra complications, its a lease off a head lease, and charges/conditions would be subject to change? Which potentially effects the value in the future, or the time in which to make it worth it? Man I wish I bought something ten years ago.
As a landowner in Thredbo, one of my biggest gripes is accessing suitable space to build a heliport. I'm so over driving the Rangey from Cooma airport. I don't know how these people drive all the way from Canberra for a ski. Unthinkable.
ah 1993, the year of Grunge, the dulcet tones of Kurt Cobain and Eddie Vedder, a very good year, my final year of high school. also a year according to the RBA website rates went down, twice. It was also about this time Australia adopted a system of pegged inflation . I know WA coped it during the mining down turn but this analysis of how banks operate isn’t strictly correct. Banks can not use a drive by or Kerbside valuation to enforce a reduction in lending they need a short form valuation at the minimum. That said if a kerbside is showing a reduction the short Val is only likely to reduce the pain (could also increase it). Also the only time I have seen this enforced is in the commercial world I.e clients with commercial lending (which may include residential loans within their portfolio)when banks were completing annual reviews. I didn’t see this during the GFC on any residential loan that was maintained in order.
Yes. This happened to a guy we know who owns the commercial Building next door to us. There’s not a lot to see inside a warehouse. It was on we built and sold to him years ago. Feel terrible for there guy - he is on his 2nd request to top up
Iys bizarre bank behaviour really. They are worried that you dont have enough equity in the place in case you default on the loan. so they force you to put more cash in, and potentially default on the loan as a consequence
Yeah this guy was never gonna default, been a successful businessman for decades but whipping out another mill after already chipping in a mill 2 years ago is pushing the friendship. It’s certainly put him under significant stress, and the place has been on the market for more than a year now. We sold it at the height of the market along with our other warehouse because the bank decided they needed more equity all of a sudden. At the start of the build all was good, by the end when we applied for the next bit of finance for the fit out (which was expected to be a no brainer) the rules had changed and we got told sell the warehouses or sell your house. I was furious. Especially with the attitude around the table, one guy telling us our business was about to go belly up and we just had no clue what the market was doing. I wanted to jump over the boardroom table and punch him in the face. We made more money that year than the year before - and same since then. I truly can not wait for the day that we are “bank free”.
Do it as soon as you can. This economy and the banks are going belly up. Just remember, this gov passed the bail-in law on the last sitting day in December 2017 and the MSM did not report it. Our deposits can go tomorrow.
Your mother is not stupid, in fact, she is smarter than most!!! Your bank deposits are unsecured loans to the bank that you have given your money to. Put another way, the bank OWNS YOUR MONEY, NOT YOU!
Further, recently I transferred alot of money from our main bank to other banks...within 30 minutes our main bank called me and asked "what are you doing with the money"? They were freaking out! We don't have any mortgages or credit card debt with them nor any other bank. We are debt free.
...and regarding the $250,000 bank guarantee... Walk The World 2 months ago 250k is deposit insured if bank has failed. Bail-in stops a bank failing, so in fact if they do that, they can avoid the deposit guarantee. Two separate scenarios...
A commercial valuation (as Im sure you know) is based on yield as the primary form of valuation and then comparison so to devalue a property rents must be going down. I hate the whole downward spiral valuation, retain lvr , put in cash, as @gareth_oau says it facilitates failure. Happened to a client of mine, he was forced to sell a property and lost $750k, property was let and still is. Recent sales in the area suggest our clients lvr was never going to be an issue. the whole commercial banking world is a joke! I love listening to the bankers fresh out of Uni telling clients who have been in business for 40 years that their business are shot..... I had one the other day telling a client there idea wasn’t going to work as it wasn’t in Braddon, our local eating hotspot. Funny, As I work on the street and watch every second business shut down due to competition.
Slightly off topic, but after watching the video linked in above it's worth noting the RBNZ is addressing bank capital adequacy levels, albeit over a number of years. This will put the banks through the wringer in terms of needing to raise capital / lower dividend payout ratios (or both) and will lower return on equity, etc. Australian banks operating in NZ will need between $14 billion and $23 billion to top up the capital levels of their NZ operations, depending on certain assumptions re growth. And those numbers don't include the NZ banks. https://www.smh.com.au/business/ban...de-at-battle-weary-banks-20191205-p53h5h.html
Umm interest rates were coming down yes but from what level? We were in recession. Mortgage foreclosures were all time, the economy was dead, admit it, you were too stoned and busy chasing girls to notice No wait that was me
I wasnt in business in the late 80's early 90's, but I was working in liquidations, trying to recover monies. IMO its about to be worse than then, its like a pressure cooker, just waiting for the peeeeeeeep. I cant see what will stop it, unlike then the domino of failing large construction developers has not started. Its not the same, thats for sure. But, like @zac150 says, the people we know wont really get impacted, though I cant see how the prices will stay so high, though maybe not that many will need to sell.
there may be some truth in this, well the last statement anyway. Ah the days when you could turn up to stonefest with your own Keg and nobody look sideways, actually everyone looked sideways but that because of what they smoked.....
Too busy in Thredbo these days ..... urban jungle, people wandering about, airbnb dance parties, parking police, erratic public transport
To be fair I find it difficult at the moment to separate those that want the economy to tank to prove their point, so that they can say I predicted the second coming of the gfc. the issue is retail is tanking which is not surprising given we have just had a royal commission into banks that focused on spending habits. So yeah banks have told people to save if you want a loan. House prices are on the move up again and there is pressure on the banks to open up lending policy. But retail is faaaarked! A few developers may have some issues over quality which could put pressure on banks but IMO only AMP in Australia are at real risk and they are a basket case about to explode.
Its the snowball effect that could bite, as retail workers and owners lose the work/money.....then they cant buy stuff, etc etc. I remember as a kid, being hassled by my friends dad, ironically now, for having long hair. What about the poor hairdressers he said, if everyone grows their hair long like you, they will be out of a job! Everyone go buy as many kayaks as you can, so I can buy a property in Thredbo!
I have been floating around Asia for a few years. The bank guarantee on a couple of the banks I have in diff countries in Asia is equivalent to approx AUD20k !! that is 20, not 200. This includes global major banks. No wonder I spread my small amount of dosh in as many countries/banks as possible.
More importantly and of significant local interest to me here in Currumbin, Balter brewery just sold to CUB/Asahi. There'll be some even wealthier surfers getting around town now.
Here's an interesting article which in the last paragraph shed a slightly different light on the real estate in ski resorts.
I think thats the dream for all micro/ small brewers, to be bought out and retire to a relaxed lifestyle
On residential or IP loans, I would love to see where that has happened. I am pretty sure there are some rules in place that prevent a bank calling in a home loan like that.
You've just described the first 6 months of my year until I got @zac150 to do the punching for me. ****s.
Exactly !!!! A mate of mine is one of the seed investors , I don't know what percentage though . He told me the story about JK .
Ha! YAy for Zac! I’m currently waiting on the yes or no for finance for the next house... who knows what they’ll say! Maybe I need to enlist Zac’s muscle!
@skull as I said earlier I have only seen this happen in the commercial world but there are tight protocol that has to be followed. That said it is technically in your memorandum of mortgages that a bank can ask for a reduction if your valuation goes down but the reputation risk would be too great for a bank to do this in a residential sense. Also banks aren’t idiots they know that this could cause hell if they called in loans like this and likely cause a rush to sell dropping house prices and artificially causing a lot of loans to default. So best to just deal with those actually in default first.
So after an interesting number of posts on the Thredbo facebook page, it appears there are two classes of Thredbo owners. Those that have a lease that allows permanent residence and as such may call Thredbo home Those owners who are not allowed permanent residence at Thredbo and as such are not allowed to consider the place home and must stay away as declared by those in the above category. Also interesting that the self proclaimed mayor of Thredbo is using private information for personal reasons would be a breach of the privacy principals.
Nah it’s a load of crap! The original poster is a clown (I do want his place - 3 bears). All of the leases are the same but are technically enforced differently I.e they all say you are supposed to move away for x number of weeks per year, but lots dont. I have friends, @telecrag knows them as well, that have never let there property and it’s never been questioned.
