Interest free loans! What next

[Robbo]

I see we have a certain religion that does'nt want loans to have interest as it is against their laws and beliefs.
Perhaps we could lobby our bans for interest free loans for KB members using the same logic. :laugh::laugh:

http://www.stuff.co.nz/business/money/68152864/muslim-woman-lobbies-banks-for-interestfree-home-loans

[Scuba_Steve]

Yea, not quite as "clear cut" (or interest free) as the propaganda machine would have you believe...

This guys says it better than I

They're not "interest-free", they simply have a different way of calculating a return on a loan. The bank and the customer end up forming a partnership and invest in the asset together, with the homeowner eventually buying the bank out at an agreed-upon premium.

Really it's interest in everything but name, although when one of these arrangements defaults it's a little different from a standard loan.

[ellipsis]

...this thread will probably not accrue that much interest...

[oldrider]

Interest free loans are not something new - just to this generation who have been brainwashed accordingly! :laugh:

[Erelyes]

So just charge a x% p.a. 'Sharia Administration Fee'?

I must go to Iraq and tell them that my religion demands nudie mags be available in stores, and see how I get along.

[Robbo]

I'd like to see the banks pull the interest rates on mortgages back to 2 or 3% . Surely they would still make enough profit on volume of transactions and it would give the younger ones a better chance to get into their own homes.
Back in my day, which was during the Muldoon era, the interest rates were close to 20% until Piggy pulled them back and froze them at around 10%. Banks were creaming it back then although the the wages in proportion to the cost of a house were much better than they are now.

[Gadget1]

...this thread will probably not accrue that much interest...


Are you banking on that happening?

[Oscar]

I'd like to see the banks pull the interest rates on mortgages back to 2 or 3% . Surely they would still make enough profit on volume of transactions and it would give the younger ones a better chance to get into their own homes.
Back in my day, which was during the Muldoon era, the interest rates were close to 20% until Piggy pulled them back and froze them at around 10%. Banks were creaming it back then although the the wages in proportion to the cost of a house were much better than they are now.

Er...you need to understand that there is someone else at the other end of that equation - like a pensioner trying to live off a nest egg.
During the Muldoon era savers often lost the value of their money as the net interest rate (after tax), was less than the rate of inflation.

[Oscar]

Interest free loans are not something new - just to this generation who have been brainwashed accordingly! :laugh:

And what interest free loans would these be then?

[Banditbandit]

Are you banking on that happening?

Or maybe giving too much credit?

I'd cheque that out ...

[Robbo]

Er...you need to understand that there is someone else at the other end of that equation - like a pensioner trying to live off a nest egg.
During the Muldoon era savers often lost the value of their money as the net interest rate (after tax), was less than the rate of inflation.

Oscar, There are other options out there for pensioners to invest their nest eggs in that show a better return than just leaving it sitting in a dead bank account and expecting to get rich on the interest. It is this expectation that causes the banks to have higher lending rates to cover these costs and still show a profit, which they are entitled to do, but not to make a killing.
As for the Muldoon era, you can't lose the value of your money, all you could do was to make less interest than you hoped you would.
It's getting harder for young couples to be able to afford to get into their homes these days than what it was back then. This means that many will be lifetime renters and have no financial security when they retire. If low cost bank loans can be made easily available to them then it's an investment in their retirement and less cost to the taxpayer in rent assist payments.
Banks should be seen only as a safe place to put your money into with a nominal % of interest so that lending can go out at an affordable rate.

[Gadget1]

Or maybe giving too much credit?

I'd cheque that out ...



Thanks, I've taken note of that.

[Oscar]

Oscar, There are other options out there for pensioners to invest their nest eggs in that show a better return than just leaving it sitting in a dead bank account and expecting to get rich on the interest. It is this expectation that causes the banks to have higher lending rates to cover these costs and still show a profit, which they are entitled to do, but not to make a killing.
As for the Muldoon era, you can't lose the value of your money, all you could do was to make less interest than you hoped you would.
It's getting harder for young couples to be able to afford to get into their homes these days than what it was back then. This means that many will be lifetime renters and have no financial security when they retire. If low cost bank loans can be made easily available to them then it's an investment in their retirement and less cost to the taxpayer in rent assist payments.
Banks should be seen only as a safe place to put your money into with a nominal % of interest so that lending can go out at an affordable rate.

Gee I'm glad you thought things through then.
Aside from a spectacular misunderstanding of how banks work, you seem to be confused on the value of money.
In 1985, the annual inflation rate was 17.9%, so that meant that unless you could get a net return in excess of that, your wealth was reducing.
This meant that the only option to do that without stupid risks was property - investment in almost any other market was going to reduce the real value of your $.
For example, you could get 25% per annum interest on a 90 day bill, but even the withholding tax was going to reduce that to around 18.75% net and the highest marginal tax rate was going to decimate it.

So if property is the only answer, who was gonna fund it?

[pzkpfw]

It's typical of religion, really.

They are not really talking about "interest free", they are talking about a loan with interest where it's structured so they can use different words for "loan" and "interest".

e.g.


Lloyds Bank has a similar product where the bank buys the house for the customer, who then pays the purchase price in monthly instalments.

As the bank is the legal owner of the property, the customer also pays a monthly rent to the bank, which decreases as they buy the bank's share of the property.

How dumb is their God to be fooled by that?

(To be clear; I see that sort of bollocks in all religions, I'm not singling out this particular religion for criticism.)

[Banditbandit]

How dumb is their God to be fooled by that?



http://static.fjcdn.com/pictures/My_6c5d80_152818.jpg

[Voltaire]

Oscar, There are other options out there for pensioners to invest their nest eggs in that show a better return than just leaving it sitting in a dead bank account and expecting to get rich on the interest.


Any tips?:drool:
I tested the local stock market this year, but have got bored watching it go up to 7% then down to 2% then up to 6% and so on.... haven't even broke even with the fees yet :rolleyes:

[Oscar]

Any tips?:drool:
I tested the local stock market this year, but have got bored watching it go up to 7% then down to 2% then up to 6% and so on.... haven't even broke even with the fees yet :rolleyes:

Old German Motorcycles.











Boy, have I got a deal for you...

[Voltaire]

Italians are catching up :msn-wink:......

[Tazz]

Back in my day, which was during the Muldoon era, the interest rates were close to 20% until Piggy pulled them back and froze them at around 10%. Banks were creaming it back then although the the wages in proportion to the cost of a house were much better than they are now.

Yeah when my folks immigrated the were high 20's, but also the interest you got on savings was in the 20's and as you mentioned the cost of a house was the sum of 1 or 2 years of your annual wage, although with interest that high it won't be as great as it sounds at first glance as electronics, furniture etc etc cost a hell of a lot more as well by comparison to today.

[jasonu]

And what interest free loans would these be then?

Loans for grenade launchers, AK47's, IED's, nail bombs...

[Oscar]

Italians are catching up :msn-wink:......

...and you can double the value just by filling the tank.

[5ive]

Yeah when my folks immigrated the were high 20's, but also the interest you got on savings was in the 20's and as you mentioned the cost of a house was the sum of 1 or 2 years of your annual wage, although with interest that high it won't be as great as it sounds at first glance as electronics, furniture etc etc cost a hell of a lot more as well by comparison to today.

I'll take the cheaper housing, and more expensive luxury goods thanks. Beats the high cost of todays rental properties anyday.

[Oscar]

Yeah when my folks immigrated the were high 20's, but also the interest you got on savings was in the 20's and as you mentioned the cost of a house was the sum of 1 or 2 years of your annual wage, although with interest that high it won't be as great as it sounds at first glance as electronics, furniture etc etc cost a hell of a lot more as well by comparison to today.

Not quite - I bought my (very small) first house for 35k and I was earning 8k. It was a two bedroom apartment, a proper house would have been twice that.
Within a year of the purchase the mortgage interest rate was 23% (although Muldoon was priming the economy by doing things like a $1,000 mortgage interest rate tax rebate). By way of further comparison, I bought my first brand new bike that year, a PE175Z, for $2,600, but we had to rent a TV though coz a 26" one cost $1,500!!!

[Banditbandit]

we had to rent a TV though coz a 26" one cost $1,500!!!

You paid money to watch TV ???? I used an old borrowed one ..

[Oscar]

You paid money to watch TV ???? I used an old borrowed one ..

The TV was for the Missus, so she had summat to do while I was riding the wheels off my PE175.
I loved that scooter.

http://oscar.smugmug.com/Motorcycles/Old-favourites/i-ZmdcwpR/0/M/Two%20of%20a%20kind-M.jpg

[mashman]

Interest free loans. Great idea.

[Gremlin]

That poor lady, probably disappointed that the banks hadn't responded to her request for interest free loans...

I can just imagine their response when they first heard about it

https://defineinsanity.files.wordpress.com/2010/05/funny-cat-laughing.jpg

[Akzle]

i'm not going to bother reading shit. tis the KB way.

but are you talking about "muskarah lending"?

if yes, then fuck jews.


if not, also fuck jews. cos they're still dicks. global enslavement and blah blah blah. (are the old whiteys asleep yet? best way for em.

[Stylo]

You paid money to watch TV ???? I used an old borrowed one ..

Thanks to the Harvey Norman ads, we haven't watched TV for quite some time.

Must be over 3 years now, life is so much better .....

[Akzle]

Thanks to the Harvey Norman ads, we haven't watched TV for quite some time.

Must be over 3 years now, life is so much better .....

http://imgs.xkcd.com/comics/i_dont_own_a_tv.png

[sidecar bob]

Any tips?:drool:
I tested the local stock market this year, but have got bored watching it go up to 7% then down to 2% then up to 6% and so on.... haven't even broke even with the fees yet :rolleyes:

Here's a tip. Stop trying to manage your funds yourself. I just give mine to a bloke & leave him too it, that's all he does for a job ffs. I figure if the shit hits the fan he'll be on the phone. So far we're well ahead of the game.
As for interest free loans, she can't have her cake & eat it too. It's either fuck off back home or suck it up bitch.