Ajay Ahuja Blog Post on Lending and Greed

If the chief economist of the Ernst & young ITEM club is right then us landlords can expect low monthly mortgage payments for a very long time.

Now as it may sound like good news for us it really isn’t good news for the wider economy.  If it has to stay that low for that long then we face bleak times.

So what can we do?  Well my suggestion is to buy every 15% yielding property in sight!  Property prices will undoubtedly fall (even though there will be very few transactions occurring) and bargains will be secured from desperate sellers by the lucky few who can get finance.

Can I get finance?  Well precisely at this minute my finance is on hold.  I am trying with a well known bank to help me buy the 6 cheapies I secured when I did have finance.  If they say no then I might go to the dark side and start calling up the private lenders who like to take a bit of blood off you as well as a monthly payment!

I sometimes find myself like a manic depressive.  Upbeat about the whole opportunities we face but then down when it just becomes harder and harder to buy.  Overall I am upbeat (as that’s the kind of person I am) but the last 3 and a half years really do take their toll on you.

For those who are wondering yes it is 3 and half years since this credit crunch started.  I thought it would last 3 years max but it just seems it is getting worse.  If you can get credit then GRAB IT.  Who knows how long this lending industry is going to last.  Will we really see the idea of credit just disappear?  Will loans be something people used to get from the 1800s to 2010?  2011 onwards loans being a thing of the past?

I hope not!  I must remember:

Banks make money by lending

This is where they really cream it.  So as long as banks remain greedy they will always provide loans.  As long as their greed is not greater than mine then everything is ok.  Like Gordon Gecko said:

“Greed is GOOD”

So how greedy are you feeling today?