THe reserve Bank loves me - Interest rates steady

[doriae86]

good news for the homeowners out there today, the reserve bank deciding to keep interest rates steady for this month anyway.

If they do put them up the dollar will spike, causing inflation

lets hope they leave them for a while!

[Morgs]

Dosen't affect me in the slightest, except interest on my deposits... im not in the market for a property either... maybe in a couple of years if the shit hits the fan :)

[doriae86]

well in your case you would want the reates to go up as interest rates are also the reward to saving. Also any increase in interest rates makes our $ rise making our jap imports chpeaer!

[Zman]

i think by increasing rates, the gov is 'trying' to stabilise inflation.. :)

[AndyMac]

Its also a way of slowing the economy. The governemt is trying the stop the market overheating.

In the backround, I also believe its a way to try and get the general population to save money and reduce debt.

[AngeLissA]

Damnit I wanted interest rates to go up...sick of looking for properties out there and finding nothing at a decent price. I say bring on a few more rises..

[Morgs]

I bet you're not saying that anymore :D

[doriae86]

hmm interest rates steady again today
slowing the growth of the dollar through
what a trade off

[Fryman]

next month... up she goes .25% where on a 400k house it would be about 50 $ increase ..


3 years ago... you would of been laughhin!

[Passage GT]

you've been digging up some old threads today lukian!
slow day at work?

[wadragracing]

Damnit I wanted interest rates to go up...sick of looking for properties out there and finding nothing at a decent price. I say bring on a few more rises..
I hope this person bought a house! LOL
I've just got into the market, unfortunately at the end of the boom. But better to be in than out still...

[addicted.to.speed]

election year .. govt will do everything possible to stop interest rates rising.. lets see..

[BOSS 290]

I hope this person bought a house! LOL
I've just got into the market, unfortunately at the end of the boom. But better to be in than out still...

You bought now? At the tail-end of the boom, hope you got in with a sizeable deposit and a low mortgage. You can bet your bottom dollar interest rates will increase, and as yet we havent seen the market correction for house prices like what happened in the Eastern States not long ago. House and land prices are over inflated.

Good luck to you anyway.

[BOSS 290]

election year .. govt will do everything possible to stop interest rates rising.. lets see..

Yes they will, however the new Governer of the Reserve Bank seems like the kind of person who does not like being dictated too, as alluded to in his first speach earlier this year.

Will be interesting to see what happens next month.

[xr06t]

she's goin up for sure...

[doriae86]

all depends yourcircumstances - id rather have a new mortgage now than be looking for a rental.

[Muppet_Guy]

You bought now? At the tail-end of the boom, hope you got in with a sizeable deposit and a low mortgage. You can bet your bottom dollar interest rates will increase, and as yet we havent seen the market correction for house prices like what happened in the Eastern States not long ago. House and land prices are over inflated.

Good luck to you anyway.

All this doom and gloom theories... Sydney in particular has a very buoyant market anyway. One year it goes up, the other it goes down. Perth is slightly different. In the last thirty years Perth real estate only fell twice. During the oil crisis in the seventies and the early 90s recession. Other years it was always on the way up. At various rates mind you, but still positive.

No doubt the Perth boom is over, in general. However I wouldn't worry too much about big slumps in house prices. Although there are some areas in Perth that are way overpriced... especially out there in the fringes of the city...

[Riggs]

Rates will go up. They have to, to stabalise inflation. Theres too many people blowing a lot of money which is helping drive inflation.

A small increase like the one we should have will not hurt the pocket too much but will slow the spending and bring inflation back to the prefered level (Between 2 - 3%). This is not the only reason, it is a combination of many like the industrial and mining sector and the value of the $AU which play big parts aswell.

I'd much prefere small increases early on rather than waiting for inflation to get out of hand like it did in the early 90's then put interest rates up to 16% fuck that! I bought mine just before the boom and she's doubled in value with a relitively low mortgage so im a happy camper atm :).

[Muppet_Guy]

I'd much prefere small increases early on rather than waiting for inflation to get out of hand like it did in the early 90's then put interest rates up to 16% fuck that!

Couldn't agree more! I've heard of people committing suicides over this sh|t coz they went bankrupt, such huge rise in interest rates will make all property worth heaps less, and those with the mortgage stretched to the limit do get owned bad. Fark owning a house worth thousands less than the mortgage!

[ben351]

all depends yourcircumstances - id rather have a new mortgage now than be looking for a rental.

hear hear ... tooks months to find a rental and the rent is almost mortgage repayment spec

[Kilma]

^^Agreed.

[Blueraven]

i wish the rent i am getting from my investment property was mortgage spec.

think about it...average family home these days is 450k(in an avg suburb)..the mortgage on that is about 3k a month, but i bet you the rent paid on the same is alot closer to 2k maybe even under.

my apartment is worth 300k (but thanks to the boom i only owe 190k) but the rent earned is only 800 a month and the repayments on a 190k loan is about 1300. add to that rates, strata, water etc and it still costs me about a grand a month AFTER i get the rent....fuck knows how anyone can buy a place now and expect to rent it out to cover half the mortgage.

[confuzion]

i hate my life

[Miggy]

got to stop playing around with cars and get a house....










fuck that..

[BOSS 290]

Couldn't agree more! I've heard of people committing suicides over this sh|t coz they went bankrupt, such huge rise in interest rates will make all property worth heaps less, and those with the mortgage stretched to the limit do get owned bad. Fark owning a house worth thousands less than the mortgage!

Interest rates do not need to increase by that amount to have the same effect in this day and age. A much larger amount is being borrowed now than back in the late 80's/early 90's.

But bring it on anyway.

[[PIG GTS]]

im glad i got a house 4 years ago rent pays off the mortgage plus abit spare change :D

[Muppet_Guy]

;219730']im glad i got a house 4 years ago rent pays off the mortgage plus abit spare change :D

Fark, that's alright! It's like you're getting a free house lol!