Australia's largest stock trading and investment forum Australia's #1 stock forum

"Party,s over but headache may last a bit", page-88

First 3 Last

Share
Profile

Follow
simonjb

2,760 Posts.

07/01/16

13:48

Post #: 16748430
Share

Originally posted by nosirommit ↑

Ok scenario.
You lend me $800k based on my owning a property worth $1m.
You have borrowed that money along with another $3billion worth of funds for other property loans at 2.5%pa and are charging it to me at 5%pa.
Property crashes and the property is now worth $700k.
So I have more of your money than the property is worth and the economy is looking shaky.
Are you saying you wouldn't come to me and say, "hey you need to inject some funds to get back to a 20% LVR or take out LMI"
Not to mention that the organisation that you have borrowed from is knocking on your door saying the same thing.

Expand

Yes.
Upvote

Reply

Top Stories

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

Finance school vs reality: What they don't teach you about the stock market

Making money: How many microcaps should be in an investor's portfolio?

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

First 3 Last