staringclown

In the current market young buyers should save and rent, don't buy now! David Collyer

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In the current market young buyers should save and rent, don't buy now! David Collyer

I have been warning young home buyers against borrowing heavily and signing away their lifetime earnings to buy a house in a market climax.

I urge them to rent, which is an absolute bargain compared to buying. If a negatively geared property investor wants to subsidise my lifestyle, I’ll have his dollar.

I urge them to save a giant deposit. If rent is dead money, then by the same measure so are interest payments. There is no point exchanging paying rent on a house for paying economic rent to a bank.

I urge them to build up their credit rating so they have ready access to loans in the future.

And I urge them to await the inevitable correction. A detailed explanation of these forces, which every Property Observer reader should know and understand, is here.

Don’t Buy Now!

David Collyer

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In the current market young buyers should save and rent, don't buy now! David Collyer

Don’t Buy Now!

David Collyer

Something's super annoying about that link and pop ups... But I read enough of his comments on Macrobusiness to know he'll be getting a senate vote from me

Tell you what though this house price insanity is taking f o r e v e r

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In the current market young buyers should save and rent, don't buy now! David Collyer

I urge them to build up their credit rating so they have ready access to loans in the future.

I find this a rather odd thing for an Australian Senate candidate to be saying. My understanding is that unlike in the US, it's not possible to "build up" an Australian credit rating - only to damage one.

That is - there are two types of credit ratings in Australia:

- Unblemished. (No loan rejections or late payments on record)

- Blemished. (Has loan rejections or late payments on record)

Unless you're currently a bankrupt, I can't see that there's anything one can do to change your 'rating' in order to access more debt? :blink:/>

Dead Money

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I find this a rather odd thing for an Australian Senate candidate to be saying. My understanding is that unlike in the US, it's not possible to "build up" an Australian credit rating - only to damage one.

That is - there are two types of credit ratings in Australia:

- Unblemished. (No loan rejections or late payments on record)

- Blemished. (Has loan rejections or late payments on record)

Unless you're currently a bankrupt, I can't see that there's anything one can do to change your 'rating' in order to access more debt? :blink:/>/>

Dead Money

I think you are correct in terms of asking Veda for a credit rating. However banks don't just use that for exactly that reason. What he probably meant was build a history of saving etc. I know when I got my loan they wanted to know an awful lot about my other savings accounts.

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Something's super annoying about that link and pop ups... But I read enough of his comments on Macrobusiness to know he'll be getting a senate vote from me

Tell you what though this house price insanity is taking f o r e v e r

I didn't know David was running for the Senate!

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