Recent content by FHB

Well I was one of the bears who use to post here a lot up until early 2009. The Bears were expecting the fallout from the US to affect the market here, and many of us had different theories about what would happen when it did. Some thought there would be 90% falls, some of us thought prices...

Yep, there can be extremes on each side.

Well, I'm certainly negative on property at the moment and have been for some time, but I come here to get a balanced view on the market and learn from others' experiences. I also feel that I should on occasion put forward a contrary view on some of the topics discussed here. Some of the...

No you're not, you refinance at a lower rate, because you can do that in the US, as long as the banks are still lending and passing on the lower rate.

Yep, but we wouldn't want reality to get in the way of an good argument....

Yep, all those who keep complaining about high bank fees and margins may actually be saved by these. I think house prices will be either kept afloat or sunk by the actions of banks, and it is in their best interests to keep prices in the positive if they can. This and employment are the real...

Yep, but how does having a fixed rate affect your decision to expect/accept a lower or higher price? If rates are falling, the person buying your house will have access to cheaper credit (whether it be fixed or variable). As a vendor, I'd be expecting them to pay more if their money is getting...

I'm not commenting on the future, I'm commenting on the current. I don't know what will happen tomorrow with 100% certainty.

I'm just saying that credit card rates and business rates haven't been reduced as much as residential mortgages. The banks are keeping up their margins one way or another.

Yep..............

Well, I was saying something slightly different: Yay rates are dropping. This is good news, and helps majority of aussies. Reduces mortgage stress. However, rates dropping in the USA doesnt help so many people over there, as lenders aren't lending and aren't passing on the full cut for...

I'm not trying to impress anyone, most of the D&Gers argue with me because I don't think prices will fall all that much. I don't think you need to generalise my position in this way. I agree that Australians benefit from falling interest rates, I just think he has failed to identify the reason...

So the biggest influence on house prices are the interest rates that existing home owners are paying on existing loans? Interest rates on new loans mean very little? Is this what he is saying? So the issue isn't fixed rates, it's negative equity, maybe Mr Brooks should have listed that. Not...

But new borrowers can benefit aswell, no matter if it is fixed or not. The issue in the US isn't fixed vs variable, it is the cost and availability of credit. Even existing borrowers can break, refinance, etc. In the US it is more common for long term fixed loans to have no prepayment...

Someone on a fixed rate can enter into a new loan at a lower fixed rate if they want to buy more. In the US you can even pay out early and refinance at a lower rate. Why would you need to sell? This isn't a function of fixed vs variable. It may be a function of the price or availability of...