QUESTIONS FOR Mc DUNK

[minimoke]

Interest rates can get to 20% if you look back in time thats what you must protect yourself against.

20%!! I remember paying a few pips over 24% - hence I don’t get excited by hanging on for a year to save a percent or two. People worry about losing perceived value in a dropping market – they want to live when you are wondering how you can actually pay for your mortgage!

[POSSUM THE CAT]

MY First mortgage required over 40% deposit but that demand made sure house prices were reasonable. So as the necessary deposit increases the house price falls or it does not sell

[Mick100]

shrewd - there's a book (property investments, by Martin Hawes)
You'll learn more from this book (2-3 hrs reading) than reading the property buff rubbish on this thread. There is a right time to buy property and it's not now.
Hawes explains the property cycle which, he says, lasts 6 to 9 yrs from peak to peak so if peak was 2007 then the trough will be in 4 yrs time (in theory) meaning property will likely go sideways or down over the next 4 yrs - pobably go sideways while every thing else goes up in price - that will bring property prices back into line relative to wages and every thing else

Macdunk - you claim success in the markets is all due to timing yet you say it's always the right time to buy property _a contradiction don't you think?

[axion]

I can't believe what I'm reading on this forum, is someone really saying it's not a loss until the asset is sold?

That is like #1 on the list of newbie sharetrading path to destruction 101.

Duncan: It seems ridiculous to be "protect[ing] your backside at all costs" in regards to interest rates at this point in time, I don't even know why you'd mention them being at 20% at one time.. so what? It's irrelevant. Other than some type of weak fear mongering...

Also how has SC missed the bus? Interest rates are almost definitely going to continue going down, and the economic climate is getting worse and worse (and hence people's ability to afford houses should also decline). I do agree that there are bargains to be had at any point in the cycle and to never write-off buying, but I also think it's just as bad to give the contra-advice the whole time too.

[Crypto Crude]

many topics...
wow...

mr devine... to your last question... of course....

confusion---> with georges post... dont really know where to start without going overboard with explanation...


next poster minimoke said

Still missing the point SC. A home has no value at all

I read the 2nd line and stopped (seriously)........
every home has value dude......

I then came to the next post... and mackdunks post asked more questions and queries of the newbie than even a buff could answer.......
therefore, I thought bugger that... waste my time....
.......
...
possum the cat touches on a major point....

next---> mick trys to refer me

shrewd - there's a book (property investments, by Martin Hawes)
You'll learn more from this book (2-3 hrs reading) than reading the property buff rubbish on this thread. There is a right time to buy property and it's not now.

thats good quality read for a newbie... but Id say right now that advice is a waste of time mick 100... going off topic and detracting away from everything these newbies threads "first homebuyers" and all that have unravelled,the truth from the big cats.... even though that truth was not mentioned (not even once) by a big cat.... and now we are maybe half way through, and We still wait on the truth.....
We can wait years more for those big cats to fess up...
Who do you want to believe...
I will post the minute I buy, or sentiment changes (and that it will)...

this will take years to unfold (uncharted territory)... I will re-address housing during 2009...
there's no rush unless you are a buff...

axion-I can't believe what I'm reading on this forum, is someone really saying it's not a loss until the asset is sold?

That is like #1 on the list of newbie sharetrading path to destruction 101.

Duncan: It seems ridiculous to be "protect[ing] your backside at all costs" in regards to interest rates at this point in time, I don't even know why you'd mention them being at 20% at one time.. so what? It's irrelevant. Other than some type of weak fear mongering...

Also how has SC missed the bus? Interest rates are almost definitely going to continue going down, and the economic climate is getting worse and worse (and hence people's ability to afford houses should also decline). I do agree that there are bargains to be had at any point in the cycle and to never write-off buying, but I also think it's just as bad to give the contra-advice the whole time too.

huumm... yes..axion sums it all up very very well....(from a near term home entrant is concerned)....
20% Inflation is a time not even worth mentioning...we have explaned it all before.... refer other threads....
there will be no problem for a newbie, or potential newbie to get ready over the next 2 years if they so want a house

... to the buff--> dont even try and make that a barrier for us... 20k, 40k, its all the same in two years if you are serious about this business...

mackdunk is right on so many levels... but mackdunk is wrong on 'new entrant level'... I would have thought the been around the block type would give the best advice... I was wrong...I risked nothingby trusting my own advice regardless of the stock market in this instance...
give it up to me mackdunk...
I risked nothing...

.^sc

[George]

SC
What I meant was that if a homeowner found themselves in trouble
because of the current crisis, that there would be help available so why
wait if you find something you like and the figures stack up.
What interest rate/house price are you waiting for before buying?

BNZ dropped rates below 7% yesterday so we will wait till next week to see what
the reserve bank does and look to fix at a lower rate. Each 1% less means a
saving of $2,500 on our interest each year. If rates go much lower we could be
mortgage free by 2014.
At some point we may also have the opportunity to buy another do-up at a bargain
price with our home as collateral.

[minimoke]

I can't believe what I'm reading on this forum, is someone really saying it's not a loss until the asset is sold?

That is like #1 on the list of newbie sharetrading path to destruction 101.

Except we aren’t looking at sharetrading. SC originally pondered about buying his first home. This is quite a different proposition from trading shares and buying property investments. Heck property investors struggle with the idea that they are in it for either capital gain or income. So many of them were crowing as their properties went up in value (even though they were making 5% on the deal) yet insisted they were in it for income so as to avoid Capital Gains Tax. Likewise for sharetraders – no doubt there are those out there trading who are in it for the “income” but will have Stop Loss limits that kick in if their investment trips below a certain value which is based on Share Price not yield.

But that is by the: SC and others don’t see the value in Fixed Interest mortgages. They are entitled to their view but the problem with looking at interest rates as they down trend is that the purchaser goes “Great 7% I can afford the interest on that mortgage – and look I’ll save even more when the rates drop more!”. Except at some point the interest rates will reverse – and in the mean time a person’s lifestyle will change to the rate they are paying. Then listen to the moan as their 5% mortgages double to 10%. So paying 20 or 24% interest is not irrelevant – property tends to be a long term investment and high interest rates have happened before and will conceivably happen again.

Some posters have very fixed views on their property purchase – and for as long as they hold such views getting into property is going to be a challenge. I’ve posted an update on where SC is at on the other thread.

[Crypto Crude]

thanks for clearing that up George...

george-BNZ dropped rates below 7% yesterday so we will wait till next week to see what
the reserve bank does and look to fix at a lower rate

george,
promise me you wont fix at the new lower rate which comes out next thursday... sent me a bottle of wine in 2010 instead...

wait if you find something you like and the figures stack up.
What interest rate/house price are you waiting for before buying?

I will buy at a low, and sell at a high.... buy when the buffs are at their lowest sentiment on the threads... just watch mackdunk and minimoke and joe king come around to what ive been saying, and then snap into buying...
(this may take 2 more years for md to admit)... this is the time to buy...

why do I say this---->

the housing market will have to be in pretty bad shape for a buff to admit anything... The buff will gamble with our livelihoods on wild market swings not realising that a swing this way or that would have cost or gained us 50k just like that...bankrupty....
be patient... All will come through...

Of Course 20-24% interest rates are completely irrelevant...
Please ask questions if there is anything you are unsure of....
....

.^sc

[duncan macgregor]

SHREWDY its a pointless debate when someone who has never been in the market thinks they know the lot. You only get a few windows of opportunity in this life, you have just missed one. Your position in life is where we started years ago, learned all the lessons on the road to get here. You start out with the i know best attitude that has now cost you an entry point into the property market when deposit ratioes were at an all time low. You now cant afford the level of deposit required so end of story, your story that is.
When you get to your next window of oppoertunity i hope you have learned enough to take it. Your next window of opportunity will come with a much higher deposit required plus a much higher property price so lets hope you can save enough to have another go at a later date. The very first lesson to take on board is keep your finances at a level of affordability dont gamble on the market doing this or that. That is the one lesson you fail to understand.
The property market has been going for hundreds of years, and will continue on its merry way for hundreds more, study the trends dont talk crap.
When i see a decline in population, or see building and building compliance costs drop then i might agree that the price of property long term will drop. The new homes being built are not keeping pace with the growth. Builders fleeing the country in droves or dont you know that?. It dousnt take half a brain to know what the next trend will be only you will have missed your window of opportunity by being to clever trying to bottom pick the market to be on board. LUV YOU LIKE A BRUDDER MATE. Macdunk

[Crypto Crude]

mackdunk path to success... bankrupted 50k in debt by now...
shrewd path... 20k and staying afloat...

next year.... mackdunk path to success will be 100k in debt...
shrewd path 40k with house entry....

I dont know it all about housing... I surely know I dont need to panic buy or anything like that... Im not going to bend over backwards to support other views that are wrong....
time will tell who is again right or wrong...
lets see...

Dont make this all about desposits now...
Ive explained that it will be neither here nor there for muy circumstances...


heehehehehe....
have a good day mackdunk...

.^sc