Australians Who Bought Into Bubble Live In Dread Of I R

[Realistbear]

http://www.sundaytimes.news.com.au/common/...55E2761,00.html

Homeowners dread rate rise: Family budget faces crunch

By LOUISE PEMBLE

30apr06

CATHERINE and Delvin Bennett are among

thousands of homeowners who fear an interest rate rise

this week.

Like thousands of others who have bought into Perth's soaring property market, the Bennetts borrowed heavily to put a roof over the heads of their young family in the Swan Valley estate of Ellenbrook.

With petrol prices at record highs, Mrs Bennett said the family budget was already stretched to breaking point.

Bearish articles are multiplying like a great plague around the globe. Anyone waking up in the UK yet?

[Guest Winners and Losers]

http://www.sundaytimes.news.com.au/common/...55E2761,00.html

Homeowners dread rate rise: Family budget faces crunch

By LOUISE PEMBLE

30apr06

CATHERINE and Delvin Bennett are among

thousands of homeowners who fear an interest rate rise

this week.

Like thousands of others who have bought into Perth's soaring property market, the Bennetts borrowed heavily to put a roof over the heads of their young family in the Swan Valley estate of Ellenbrook.

With petrol prices at record highs, Mrs Bennett said the family budget was already stretched to breaking point.

Bearish articles are multiplying like a great plague around the globe. Anyone waking up in the UK yet?

Noooo - it could never happen here!

[Bear Goggles]

http://www.sundaytimes.news.com.au/common/...55E2761,00.html

Homeowners dread rate rise: Family budget faces crunch

By LOUISE PEMBLE

30apr06

CATHERINE and Delvin Bennett are among

thousands of homeowners who fear an interest rate rise

this week.

Like thousands of others who have bought into Perth's soaring property market, the Bennetts borrowed heavily to put a roof over the heads of their young family in the Swan Valley estate of Ellenbrook.

With petrol prices at record highs, Mrs Bennett said the family budget was already stretched to breaking point.

Bearish articles are multiplying like a great plague around the globe. Anyone waking up in the UK yet?

Nah, petrol prices don't effect the cost of living in the in the UK (it's official)

Their mortgage costs may be rising, but just think of how many more DVD players they can buy with the same money this year.

[Guest Bart of Darkness]

Their mortgage costs may be rising, but just think of how many more DVD players they can buy with the same money this year.

I'm buying 20 next week. I was originally only going to buy 10 but then I thought "if I buy 20 I'll save twice as much money".

It's a no-brainer really.

[BuyingBear]

Nah, petrol prices don't effect the cost of living in the in the UK (it's official)

Especially when you can run the car on milk and dairy products, and they're so cheap thesedays!

[Bear Goggles]

Especially when you can run the car on milk and dairy products, and they're so cheap thesedays!

Maybe they'll invent a car that runs on DVD players. That would solve global inflationary pressures once and for all

[BuyingBear]

Maybe they'll invent a car that runs on DVD players. That would solve global inflationary pressures once and for all

The central banks could simply print some more virgin oil fields.

[Spring In The Air]

http://www.sundaytimes.news.com.au/common/...55E2761,00.html

Homeowners dread rate rise: Family budget faces crunch

By LOUISE PEMBLE

30apr06

CATHERINE and Delvin Bennett are among

thousands of homeowners who fear an interest rate rise

this week.

Like thousands of others who have bought into Perth's soaring property market, the Bennetts borrowed heavily to put a roof over the heads of their young family in the Swan Valley estate of Ellenbrook.

With petrol prices at record highs, Mrs Bennett said the family budget was already stretched to breaking point.

Bearish articles are multiplying like a great plague around the globe. Anyone waking up in the UK yet?

No, we haven't gone to bed yet.

[brainclamp]

It doesn't matter if they cannot afford the mortage payments, default, the bank will sell to a tax advantaged investor, they will pay cheaper rent to), who simply writes off losses with higher interest rates against income tax, while putting the rent up, so putting a floor under the price of OZ property.

Edited April 29, 2006 by brainclamp

[Guest Winners and Losers]

It doesn't matter they will be forced to rent to a tax advantaged investors, who writes off any losses against income tax, so putting a floor under the price of OZ property.

Negative Gearing for the uninitiated. Welcome to my world.

[Cinnamon]

Maybe they'll invent a car that runs on DVD players. That would solve global inflationary pressures once and for all

There was an article in the Private Eye 2 issues ago about a guy who had invented a cheap conversion kit to allow diesel cars to run on rapeseed oil. That is, you simply press the seed and fill up!

The government was so pleased with this spiffy idea, they raised the tax on vegetable oil based fuel to the point of making it uncompetetetive against oil.

http://www.smallholder.co.uk/the_west_coun...VIRONMENT2.html

[BillyShears]

Seems like these problems are going on here as well.

Over the last two weeks or so, I have mentioned a house in Larchmont Road, Leicester, where a house had been sold "by order of the mortgagee" at auction, selling for 146K where five bedroom houses in that road had typically previously sold for 170K or so.

When I popped in to see the street and house (from the outside) I noticed thetre was a nice little playground, and took my son there today. On the way out I noticed that one of the houses (out of many) for sale had a piece of paper taped to the front door. Out of curiosity, I had a look. It was a notice notifying an "unknown" occupant that some organisation acting on behalf of the receivers for this property were going to enter. I noticed that the front door showed signs of having been forced, and there was a new lock (including a bit of plastic behind it).

I'm a bit confused by the mention of a "receiver" and wonder who the "unknown" occupant was. Squatters? In any case, this appears to be another house in that area where something has "ended in tears".

It's on sale for the previous market top price though.

http://www.rightmove.co.uk/viewdetails-624...pa_n=2&tr_t=buy

Billy Shears

Edited April 29, 2006 by BillyShears

[BuyingBear]

It's on sale for the previous market top price though.

http://www.rightmove.co.uk/viewdetails-624...pa_n=2&tr_t=buy

Reminds me of a Victorian workhouse.

[BillyShears]

Reminds me of a Victorian workhouse.

I think that some developers tried to think of how to get the most ££££ from a small amount of land, and came up with the result you see, really tall and narrow "town houses". This one seems to have a bigger back garden than most, even if it is rather oddly shaped.

Edit: I just looked at the floor plans. Trapezoid living!

Billy Shears

Edited April 29, 2006 by BillyShears

[BuyingBear]

I think that some developers tried to think of how to get the most ££££ from a small amount of land, and came up with the result you see, really tall and narrow "town houses". This one seems to have a bigger back garden than most, even if it is rather oddly shaped.

Edit: I just looked at the floor plans. Trapezoid living!

Indeed, they're very oddly designed, same goes for the 3 storey 'executive' terraces commanding £400k. These throw backs are due to the new density targets of course, originally such rules were enacted to prevent the reemergence of slums, now they actively encourage it. 40 dwellings per hectare the is minimum and 1.5 parking spaces is the upper limit, that's why such estates are littered with homeless cars.

There is no requirement for gardens or open green space either, welcome to modern Britain, where for just half a mil and a 25 year commitment you can live just like your great-great grandfather.

[Guest Winners and Losers]

http://www.abc.net.au/worldtoday/content/2006/s1627933.htm

Home ownes fear rate rise - apparently it will only take a tiny rise in rates to tip many over the edge.

STEVE KEEN: The level of debt we have now in the country is so much higher than it was last time we had a big housing bubble, that even a tiny… apparently tiny increase like a one-quarter of one per cent increase in the interest rate will really hit households hard.

ANDREW GEOGHEGAN: Associate Professor Steve Keen from the University of Western Sydney says the ratio of household debt to gross national product is now 75 per cent compared with 17 per cent back in 1989 when interest rates were at 17 per cent.

STEVE KEEN: And with that level of debt there are many, many people out there who thought they were investing, borrowing large amounts of money, riding rising property prices; they're now just staying alive because they're able to finance their mortgages out of their normal wage cash flow, that another one quarter of one per cent could be enough to push quite a few of them over the edge.

ANDREW GEOGHEGAN: Compounding the problem is that a rate rise is likely to erode the value of housing.

HARLEY DALE: Any further interest rate rise from here would run the risk that we see a somewhat sharper correction to housing activity than what's transpired to date.

ANDREW GEOGHEGAN: But should the risk of rising inflation be the key reason for lifting rates?

Economist Steve Keen thinks not.

STEVE KEEN: The economists normally treat inflation as always and everywhere a bad thing. Sometimes inflation can help when you get yourself particularly into overwhelming debt levels, and I think we're at that level now. So I think being afraid of inflation is being afraid of the wrong bogeyman.