The Reserve Bank cash rate has been raised to 3.5% today.

Article.

But we still need more stimulus though. haha, Swan is an idiot.

thank fuck it wasnt 0.5%

looks like my gamble to go short term fixed rates is gonna hurt me :(

i wasnt expecting our economy to bounce back so quickly, looks like i totally under rated how awesome the krudd and waynee are doing managing the show!

that will teach me to listen to infi.

What'd you lock it in as Spook?

4.25% or something

I've never gone fixed, I like to live dangerously.

i need to keep repayments down while petal is on holiday;

hows about krudd, not only does he know governing, economy fixing, he also knows how to pick horsies!

I'm betting on 7 straight hikes in a row

Is there anything he can't do?

meh I'm still locked in from years ago, but I'm trying to sell my place - so either way this is bad news for me


you buy you buy

what's the deal with the RBA raising rates and the treasury continuing its stimulus program. seems a bit schizophrenic.

We were going to lock in just before the last interest rate rise.

Doomed if you do, doomed if you don't. Oh well. This is how I get my excitement these days

Not a bad unit teq, what is the current net rent you get?

If Rudd and Co are so awesome at managing the economy why are they continuing to STIMULATE the economy while the RBA is trying to DAMPEN the economy?

obviously to keep the economy stable:

little bit of downward pressure vs little bit of upward pressure = equilibrium

geez infi, anything else you want me to explain to you today?

mission; its been 450 for 12+ months, but i could easily go 470 as thats what other 2 bed/2 bath are going for in the complex

I'm leaving it at 450 because I've got awesome tenants who are on a month-by-month lease and they've been good about having inspections etc with the real estate agent

oh I'm self managing it, so I don't pay fees to the body corp or whatever, i pocket the 450 and it gives me a nice tax return once i offset it against the repayments

last edited by tequila at 15:55:53 03/Nov/09

Because they like to confuse simple people.


Edit:
So you don't go through an agent?

Do the current tenants want to stay there?

last edited by mission at 15:55:48 03/Nov/09

infi: rudd and co are awesome because they are able to bribe influential groups and increase their status while appearing to save australia. you're just bitter because you didn't think of it.

you would achieve the same thing by doing nothing and allowing people to get on with their lives, spook fyi.

the current tenants have said they'll stay so long as I'm managing it, they'll see if they want to stay once the new owners take the keys

the tenants are seriously awesome, they've only ever called me once and it was when the aircon broke - so i replaced it and had no probs since
eg the dryer was blowing lint everywhere, so the tenant went and bought a new seal for the door - fixed himself and I never even heard about it until I was chatting to him months later

our current labor governemnt is a government of axn!

they cant sit idly by and jsut let things happen, they are going to stimulate until things happen!


<3

Signed a contract on a place 2 months ago...rates went up. Contract fell through and now on another and rates went up again.....FARK!

they're still ridiculously low compared to 2007~

the RBA is trying to DAMPEN the economy

I thought they were trying to bring it back to normality and that the current rate would still be considered "stimulating" they were simply toning back the ammount of stimulus ?

much like the reduction in first home owner grants, insulation ... etc etc etc ?

Or does that not agree with your current rudd bash ?

the RBA could leave rates alone if the government's inflationary spending would just stop.

the RBA could leave rates alone if the government's inflationary spending would just stop.

The market expects the RBA to lift rates to 4-5%. The press, the RBA, the analysts all talk about rates returning to normal ie. 4-5%. Former RBA governor Ian Macfarlane I believe called normal 5-6 per cent ?

Anything under that is stimulating.

And I think you know that, and are being purposefully disceptive because of a political agenda you have.

I am a businessman and have not heard of a single bank finance approval in the last 6 months, nor could my NAB or Westpac bankers. the whole credit market is fucked. and yet the RBA thinks rates need to go up on the basis of inflationary data caused by selected handouts. sheesh.

So the handouts did work?

i got some of those handouts!!!!!!

You are now arguing an anecdote ?

And by "bank finance approval" are you saying banks aren't loaning money ?
If so, I got a bank loan for a home, and work got one for a heap of work being done...

Does one anecdote prove anything ? ... it would appear not

Signed a contract on a place 2 months ago...rates went up. Contract fell through and now on another and rates went up again.....FARK!

if a 0.25% increase caused your finance to fall through id be rethinking purchasing a place at all

I am a businessman and have not heard of a single bank finance approval in the last 6 months, nor could my NAB or Westpac bankers. the whole credit market is fucked. and yet the RBA thinks rates need to go up on the basis of inflationary data caused by selected handouts. sheesh.

Seems to me you're out of touch. I couldn't count the number of times banks, including all the majors, who have offered me all sorts of pre-approved loans and credit limit increases. I always nibble but pullout when they won't lower the interest rate by 5% or so.

I suppose it helps having a sister who is one of the chief executives at AMEX....


proves the rule......it's not what you know........it's who you know....


and, I suppose knowing they know who you know....or are related to

I am trying to borrow $30m. How much are you trying to borrow?

my point is that due to the entire collapse of the second tier lending market, banks have withdrawn all exposure to commercial lending and are focusing on dominating the home lending and minor loans sub-$2m market wh ere they can break their parcels of risk into modest sizes.

This market is not a driver of growth. Major projects are not getting off the ground because the banks are simply snubbing their noses. So how on earth does raising interest rates make any sense at all?

last edited by infi at 18:41:27 03/Nov/09

I only borrowed half a Mill heh :P

it's important to keep the housing market going and Australia is lucky that the banks are lending for housing, in America no bastard can get a loan.

My mate Stinky got a loan, he's rockin out on a 30 year fixed at something super low like 4 Percent.
Please note Americas Fixed Loans allow you to repay back earlier with no penalty. Choice

I am trying to borrow $30m.

Maybe the banks have concluded that is a risk, you can't afford it.

We are borrowing $65m next year and $60m in 2011 and there has been no sign from lenders that it can't happen.

We are borrowing $65m next year and $60m in 2011 and there has been no sign from lenders that it can't happen.

Oh yeah, they told me all that. Just you wait.

infi is right here, the large margins the banks currently charge on mortgages combined with recourse on the property/assets means they can continue to lend to retail buyers with decent credentials.

On the other hand, wholesale banking (ie ~$15m+ business loans) is dead. Even though they are sitting on comfortable margins, anyone who works in the industry will tell you that they just have not been able to make (m)any new loans, with it being difficult enough to manage their current loan books.

so let's recap ... interest rates are still in stimulating range, banks are still loaning money ... even in america ...

And its all Swan's fault ?

Obes, still keeping his money uner his bed and providing armchair economic advice from the help desk at the local high school ;)

if a 0.25% increase caused your finance to fall through id be rethinking purchasing a place at all

Ahhh no 2 separate contracts for 2 separate places. first contract fell through due to building/pest. Was merely commiserating that in the period from signing a contract to finally settling and moving into a house the interest rate has gone up twice! I have budgeted for 7.5% and we will be paying at that rate, it just means there is less cream to go on the principal - thus why im not happy.

Still...5.5% is pretty nice, much better than 9%!

Obes, still keeping his money uner his bed and providing armchair economic advice from the help desk at the local high school ;)

that's about as accurate as you get

My mate Stinky got a loan, he's rockin out on a 30 year fixed at something super low like 4 Percent.
Please note Americas Fixed Loans allow you to repay back earlier with no penalty. Choice

probably half the reason why americas banks are so busto. banks can't even sell a product like that in australia and you would expect banks to be less regulated in australia because we didn't have as much moral hazard as the american banks.

CBA is weird. I got my loan on 6.04% fixed for 3 years, but my repayments are based around 6.8% interest rates. I am thinking after the first year is over I might just make my minimum repayments based on the 50 year rate average.

What's the 50 year average?

I just base our repayments on 7.5% average.

Dunno if that's too high or low, I guess time will tell.

Bit under 9%.

9% heh?

I think that over time that percentage will lower.

As the economy grows it becomes alot more sensitive to interest rates so the movements will become smaller. I think gone are the days of interest rates in their teens (for mortgages etc).

At least that's my theory :/

last edited by mission at 08:09:21 04/Nov/09

I notice spidz that you didn't dispute what I said ? Rather just tried to insult me ?

Are you angry because you like infi want to blame labor for something ... anything ... everything ...

No, I'm just amused by your commentary on an issue you know nothing about. Out here in the real world, some people are actually affected by government policy - whether it be Labor or Coalition.

No, I'm just amused by your commentary on an issue you know nothing about. Out here in the real world, some people are actually affected by government policy - whether it be Labor or Coalition.

Don't take this personally but that's ass backwards logic why should or in your case does there exist any relationship between one's knowledge of a subject and the effect with which it impacts them directly. Obes could be a hermit as long as he's an understanding of economic princicples.

Typically though people with a mortgage or loan (or those trying to get one -- infi) instantly pipe up with but I'm living it so I know exactly what's happening in the world, well no bullshit your personal opinion is so heavily tainted by your own circumstances that I couldn't believe a word that comes out of your mouth.

Give me the hermit any day he's got not vested interest.

last edited by imitation at 08:59:40 04/Nov/09