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    Has Somersoft changed or have I?

    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...
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    Building Wealth in Uncertain Times

    Yep, there can be extremes on each side.
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    Building Wealth in Uncertain Times

    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...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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.
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    Yep, but we wouldn't want reality to get in the way of an good argument....
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    I'm not commenting on the future, I'm commenting on the current. I don't know what will happen tomorrow with 100% certainty.
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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.
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    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...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    Yep, I agree that high fixed rates, if you lose income are going to hurt more than being on high variable rates that are falling and you lose income. But I didn't see where the article made that distinction. The claim I responded to is that fixed rates are worse for house prices than variable...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    We must be having different discussions then. I'm responding to this: This doesn't make sense, homeowners aren't setting prices, sellers and buyers are. Buyers have access to lower interest rates via fixed and variable loans. Both are lower than they were a year ago. The ability of banks...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    Yep, but the article is suggesting that there are more people on fixed rate loans in the US, and as such they don't pay more for houses when interest rates are cut. This is clearly wrong, otherwise they wouldn't have had a house price boom from 2002-06.
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    Stagnant prices aren't dire, I'll be happy if my house is worth what I paid for it in 30 years. I got a 15% discount off peak prices, it may fall another 25%, not sure. But I don't see it as an investment, its a home to live in, I will only realise a loss if I have to sell it, and with a $50k...
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    IMF says:Australian Housing a SURVIVOR on the World Stage

    Buyers is the key word. Existing homeowners on a fixed rate aren't buyers, so the fact that interest rates are falling, but they can't take advantage is NULL. Buyers using fixed rate mortgages do get a benefit when the central bank cuts rates, because the fixed rate on offer falls. ie. A...
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