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Horseradish

Australia also off the rails

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We all know that this madness is even worse down under, but this article had some particularly stark lines:

"Property borrowers wooed with flights to London, cashback and low rates" - https://www.afr.com/real-estate/property-borrowers-wooed-with-flights-to-london-cashback-and-low-rates-20180703-h127lo

"Lenders are restructuring their loan books to provide attractive rates for popular products, particularly shorter term fixed rates, typically two-year rates, for new borrowers or those transferring from competitors."

What could go wrong?

Lots of bribes to get investors to take these loans. Cashback, airmiles, ...

"Many lenders are offering 'shop front' loans by increasing the rates of other products."

Loss-leader two-year teaser rates. Where... where have I heard this before?

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2 hours ago, vincent said:

Holidays to london as well

Perhaps when they are over here they can pick up a nice little BTL. Australian dollar is pretty strong compared to the pound 😑.

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6 minutes ago, Horseradish said:

Perhaps when they are over here they can pick up a nice little BTL. Australian dollar is pretty strong compared to the pound 😑.

As soon as interest rates rise the party will be over for those that purchased in the last 10 years

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Just now, vincent said:

 As soon as interest rates rise the party will be over for those that purchased in the last 10 years

Yup. It's gonna be a bloodbath.

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Yup.. as has already been posted in the other Aussie thread, as per another excellent article on Wolf Street the markets in Melbourne and Sydney already appear to have reversed; being down by 2.2% and 5% on their December 2017 and September 2017 peaks respectively.

When this one gets going it's going to be insane..

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26 minutes ago, ftb_fml said:

Yup.. as has already been posted in the other Aussie thread, as per another excellent article on Wolf Street the markets in Melbourne and Sydney already appear to have reversed; being down by 2.2% and 5% on their December 2017 and September 2017 peaks respectively.

When this one gets going it's going to be insane..

Ah yes, Wolf Street has been doing a pretty stellar job recently. Also a lot of good stuff on the insanity in Canada. This one is truly global.

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5 hours ago, ftb_fml said:

Yup.. as has already been posted in the other Aussie thread, as per another excellent article on Wolf Street the markets in Melbourne and Sydney already appear to have reversed; being down by 2.2% and 5% on their December 2017 and September 2017 peaks respectively.

When this one gets going it's going to be insane..

Indeed. Australia is a whole other level of crazy, having lived through some of it for 10 years fairly recently. Who knows where the bottom is there? I anticipate an AUD crisis and raised rates into a recession and plunging property prices some time in the next few years. 50% drops and Sydney and most other capitals would still be (very) expensive by most sane metrics.

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Someone should break the news to rambling Dan Hannan, still promoting the Australian and Canadian 'economic miracles' as idealised role models for a post-Brexit UK.

hannan_flag.png?itok=rSYbRHM0

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One of the most interesting elements of the Australian pickle is that banks are already increasing rates, but the central bank still refuses. It's quite funny, there's no doubt they're between a rock and a hard place with both sides closing in, but the RBA has been frozen for almost two years now.

This is partly why for a few months now I've considered Carney to be an expensive irrelevance.

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59 minutes ago, darkmarket said:

One of the most interesting elements of the Australian pickle is that banks are already increasing rates, but the central bank still refuses. It's quite funny, there's no doubt they're between a rock and a hard place with both sides closing in, but the RBA has been frozen for almost two years now.

This is partly why for a few months now I've considered Carney to be an expensive irrelevance.

Just for few months?!

 

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14 hours ago, darkmarket said:

One of the most interesting elements of the Australian pickle is that banks are already increasing rates, but the central bank still refuses. It's quite funny, there's no doubt they're between a rock and a hard place with both sides closing in, but the RBA has been frozen for almost two years now.

This is partly why for a few months now I've considered Carney to be an expensive irrelevance.

https://www.independent.co.uk/news/business/news/mark-carney-bank-of-england-interest-rates-hike-speech-confidence-a8432441.html

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12 minutes ago, Maynardgravy said:

What happens when we don't have weather?

move somewhere that does.  a recent visit to spain showed me how crap this place is.

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13 minutes ago, longgone said:

move somewhere that does.  a recent visit to spain showed me how crap this place is.

Only if you have funds coming from the UK

Its very difficult to make a living in Spain 

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18 hours ago, darkmarket said:

One of the most interesting elements of the Australian pickle is that banks are already increasing rates, but the central bank still refuses. It's quite funny, there's no doubt they're between a rock and a hard place with both sides closing in, but the RBA has been frozen for almost two years now.

This is partly why for a few months now I've considered Carney to be an expensive irrelevance.

Carney is eye candy to women in their 40+

 

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He has a slightly boyish look that might appeal to MEWed up Mumsnet bored housewives, like an alpha pappa of HPI. A treat for all debt laden feckless I'm sure.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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