petermac33 said...
if i was you Mark,i'd take the hit now,will reduce your stress.
every year you are paying the bank interest.if the block does not go up in price, effectively interest payments a donation to bank.
in 5 years buckleys chance of house or land going up.
house prices are falling a bit under 1 percent per month in U.S
friend of friend, a woman, took a 1.7million loan from bank.
bought a block in Mandurah area and built large house,1 year ago or so.
land and house cost 2 million total.
had $300k of her own money,that she bought land or part deposit of land with.
after building,had property valued at $3,000,000.
a 1,000,000 profit? no.
a year later she has had one offer on property, for 1,200,00 million!
she accepted the offer. bank refused to let her sell.
she could not afford the interest repayments and just heard tonight she declared bankrupty.
so she has lost life savings of $300k plus a year plus on interest repayments on loan, maybe another 100k
bank is hoping property will rise in future so they can recoup their 1.7million.
won't happen.
Sad to hear that story. The banks have some reponsibility here, they should not hand out loans that people can't repay. The bank will be lov'in it as now they charge a higher rate and make huge profits from fees during a repossesion and they have their insurance paid by the borrower anyway if they havn't already sold off (collaterised) the loan.
Like those bastards from Storm Financial in Townsville who ought to be executed for how they ruined peoples lives.
