Frustrated by Bank Waffle

[PTWhatAGreatForum]

I would wager what's really going on here is banks have gotten cold feet on property. They probably think it will bust. Unfortunately, they are also between a rock and a hard place, namely, if they don't provide credit, they won't make a profit. So they are trying to walk the fine line.

[Frezzinghot]

I would wager what's really going on here is banks have gotten cold feet on property. They probably think it will bust. Unfortunately, they are also between a rock and a hard place, namely, if they don't provide credit, they won't make a profit. So they are trying to walk the fine line.

I tend to agree with this, it is that they know something we don’t, history just going to repeat itself. Are they protecting their bottom line, probably. Just wish I’d known before spending most weekends searching trade me and open homes looking for that one deal.

FH

[Frezzinghot]

Pre Approvals are done on people not property.
If you need non bank then I do more than just about anyone!

what about the rates, liberty were doing 5.6%, others like resimac were higher.

[PTWhatAGreatForum]

The other thing you should consider may be affecting you is lender exposure. This same thing also applies to businesses. Namely, you can be up to date with all your obligations, have a good credit score, and still get declined. It's because a lender thinks they have already loaned you 'enough'.

[Frezzinghot]

The other thing you should consider may be affecting you is lender exposure. This same thing also applies to businesses. Namely, you can be up to date with all your obligations, have a good credit score, and still get declined. It's because a lender thinks they have already loaned you 'enough'.

My broker told me the banks are looking at the golden triangle when deciding whether the property will be exposed to a downturn, so if I was going to try and buy in tokaroa, the banks would definitely decline. They are looking for safer bets, but I thought I had one, just not according to them as they tarred every unit with the same brush.

[PTWhatAGreatForum]

My broker told me the banks are looking at the golden triangle when deciding whether the property will be exposed to a downturn, so if I was going to try and buy in tokaroa, the banks would definitely decline. They are looking for safer bets, but I thought I had one, just not according to them as they tarred every unit with the same brush.

We are in the rural Manwatu, close to CHB, so are well outside of the Golden Triangle. In a downturn we are unlikely to lose on this place and even less likely to go negative equity, but we bought at the right time.

Problem is, prices in this area have gone crazy since, but the underlying fundamentals have not changed. It's still a farming area with very limited job options.

So if you come here and buy now - especially in a low equity scenario - you do so at your own risk. The closer you get to the city (Palmy or Hastings/Napier), the even higher the risk because the capital gain there has been unreal.

So I would say Tokoroa is in much the same boat. This advice is free and honest because unlike most here, I couldn't care less if there is a downturn in property prices. Our place will still have the same utility (use) to us as it's always had.

[Don't believe the Hype]

I personally don't care what prices do because I bank the rent every week and are yet to sell anything. Rents, i'm told have no corelation to purchase price as rents are driven by what people can afford to pay.

Which is great cause from what I've seen in the past 12 months is that people could afford about 30% more than they were paying last year.

Having said that, had a conversation with my Architect today and he's saying building costs are skyrocketing - especially commercial - but in the resi space with a decent build costing $4k-$4.5/m2 I'm now hearing that cost is more like $5m+

With build costs rising 10%+ it's hard to imaging exising dwelling prices declining

[PTWhatAGreatForum]

Rents, i'm told have no corelation to purchase price as rents are driven by what people can afford to pay.

Which is great cause from what I've seen in the past 12 months is that people could afford about 30% more than they were paying last year.

By the same argument, you must be fine with 10% yearly rates increases and "value capture" taxes. Actually, I think we should make that 30% to keep things fair. Problem is with landlords like yourselves, is you conveniently have amnesia over what you have previously said when you think something is good or bad for you. No sense of ideological or moral consistency.

This internal conflict is the consequence of doing things you know are wrong, but you justify it by how financially lucrative it is for you.

Thing is, it never lasts.

Either you get caught by inflation, or you get caught by a revolution, or you get caught by economic perils.

Or you get caught by a trifecta "perfect storm" of all three.

[sidinz]

My broker told me the banks are looking at the golden triangle when deciding whether the property will be exposed to a downturn

What is the golden triangle? Or I guess, where?

[Sportsvee]

It's not great at all. It only goes to prove what a racket you are involved in.

No racket. Tenants are free to leave anytime they want, or not take a rental in the first place.

A racket would imply they are trapped.

[PTWhatAGreatForum]

No racket. Tenants are free to leave anytime they want, or not take a rental in the first place.

A racket would imply they are trapped.

So they can go live on the street? No doubt you would then stick the boot in and call them "homeless and lazy bums"...

[Don't believe the Hype]

don't you hate it when someone makes money doing something you wanted to but didn't? Then you spout rethoric like revolution... I highly doubt my demise will come via the guillotine.

rates increases - passed on
CGT - passed on
value capture tax - passed on
higher cost of doing business of any form - passed on

[PTWhatAGreatForum]

don't you hate it when someone makes money doing something you wanted to but didn't?

You must be out of your mind if you think I would want to...

I highly doubt my demise will come via the guillotine.

You may well be right. There is more than one way to have a revolution.

CGT - passed on

Paying tax is not a business expense. But the fact you list it as such highlights property sorts believe they are somehow exempt from the obligation to contribute to NZ Inc's bills.

[Sportsvee]

So they can go live on the street? No doubt you would then stick the boot in and call them "homeless and lazy bums"...

Or go live with family that "love" them.
They don't have to be homeless, but again, that's their choice. I'm sure there are lots of places in NZ they can afford, so no boot being put in here.

Some people just need a reality check and to wake up to the fact that if you want something better for yourself/family, it won't be handed to you. You earn it. Or is that too mean for snowflakes who need a safe place?

[Sportsvee]

Show me the quotes.