Banks blame Property Investors for Crisis

[dandan]

I've had two Mainstream NZ Banks tell me the following:
"It's Property investors who got us into the financial crisis we're in at the moment so we have a low apatite for investment property debt in the current environment."

Anyone experienced this or have any thought's on it?

[Tucker]

Interesting, aren't they the ones that lent to the property investors in the first place. Usually I find it's one or two individuals that like to let customers know their personal views rather than the banks.

[essence]

Nigel you bet me to it!!

These are probably the same Bank employees, who have never invested and will never invest in property.

Due to the nature of Banking, these people work in a conservative environment and have a risk-averse nature, they then put their own conservative comments on the Bank's new attitude.

Small people with small minds, what else did you expect.

[Badger]

I've had two Mainstream NZ Banks tell me the following:
"It's Property investors who got us into the financial crisis we're in at the moment so we have a low apatite for investment property debt in the current environment."

Anyone experienced this or have any thought's on it?

Thats aload of crap. Bankers invented CDO's MBS's and all the other derivatives scam, fraud really...central bankers turned a blind eye to it with cheap credit and low interest rates mainly to keep the US out of a slump in 2000-20001...

Most property investors are just suckers who dont understand the nature of what there doing and how it works...some puny NZ investor with 10 houses on tick dosnt influence squat in international banking...

[Snookie]

That is the most ridiculous thing I have heard in a while - made me smile though!

[Viking]

Head Branch Office Wellington would be my guess.
Former owner about to go under the waves in the Mother Country.

That's not a new attitude on their behalf.

[dandan]

Head Branch Office Wellington would be my guess.
Former owner about to go under the waves in the Mother Country.

That's not a new attitude on their behalf.

Bang on:-)

[dandan]

I was like Hey man I just want the money, come on, hook a brother up, you know I do you good, I want to buy some more before the sale ends.

I said I wanted to buy a place like this 2flatter i got near town and they told me investment properties were in low demand so I was sayin here's all the details on one that was heaps worse than mine which sold cash unconditional for over the asking price with multiple offers through a 3 week tender in January 2009.

they started talking about bank policy.

I was all, yeah whatever.........

(disclainer: wording in actual discussion differed slightly from the above but you get the idea)

I hope a good finance company starts up soon.

[Viking]

Go ask their mother in law. High placed sugar daddy told me last week that they had plenty to lend and were lending more presently than they were this time last year. Into supporting the property investors. Same mother in law shopping in India for bank bargains.

Very keen to grow their customers.

[dandan]

Yeah well they shouldn’t have blown me off like that, as far as favours go, I was the one doing them. It’s quite difficult to get face to face with some of these bankers, I told them to just give me a good time and I’ll be there, I even told them I was shooting off up their end this arvo and could swing by, I’d be in and out quick. Saying as they’re so big I was sure they’d be able to pull something off, but they just like to make it hard. It’s like they just want to go down on anyone that’s a tight fit.

I think I’ll take by business elsewhere

[McDuck]

Interesting.
In a free society, it is both sides that take the balme.
You will like this story.
I bought a central Auckland bank to a standstill a few summers ago, when a teller offered me a good high gain investment.
"But with extra gain goes extra risk" I noted.
The teller replied, "we are a good bank sir".
(The volume was getting louder at this point).
"Do you offer no deposit loans?" I pressed.
"Yes sir" she replied.
By this time all the customers were looking and the managers had come out.
"Well then, you have shown yourself to be a foolish bank,
you have loaned the money (of these good people) to unknown persons, who have not managed money well in the past and are not going to do it in the future.
At that point I shut up, the bank staff looked red and guilty, and hey, they were just trying to keep their jobs.