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  1. Peter 14.7

    RBA's Unofficial Briefings: Interest Rates Headed Down Soon

    ON TOPIC Rates will go up because rates are low. Yes low. In my investing career, I would guess I have averaged 10%. Presently locked at 7.1% I am relaxed. Do I care if rates go down to 6.1%, well no. Do I worry if they go to 8.1% well no. What I really focus on is what drives my...
  2. Peter 14.7

    RBA's Unofficial Briefings: Interest Rates Headed Down Soon

    Dear Annie Lumen I don't know you. Don't know much about you at all. Only what I read. You could be rich, poor, a troll, someone banned and back under another name or hey, the PM of our country! What I do know is you dont know me. You cannot. I don't post under my name and I keep my business...
  3. Peter 14.7

    RBA's Unofficial Briefings: Interest Rates Headed Down Soon

    Thanks. You are correct. Some areas do sometimes experience oversupply and lower rental demand. If so, then rents drop if there is over supply but each area is different. Case in point I have investments in Sydney City and rental demand is huge. Far Western Melb is steady: not high not...
  4. Peter 14.7

    RBA's Unofficial Briefings: Interest Rates Headed Down Soon

    Ok, there are a number of factors here which is hard to explain. Generally: when rates go up buyers, be they FHO or investors, dont buy as much as the return on investment and potential for CG is less. Thus developers cannot makes sales so banks don't lend and they don't develop, they...
  5. Peter 14.7

    RBA's Unofficial Briefings: Interest Rates Headed Down Soon

    Not necessarily a direct link here. In Sydney: As rates rise there is less demand from buyers so less stock gets built. Under-supply rents go up and then prices go up as the rent makes us the difference. Peter 14.7
  6. Peter 14.7

    RBA's Unofficial Briefings: Interest Rates Headed Down Soon

    Hey, I fixed in Jan 2011 at 7.1% for three years. Dammm:( Seriously, in the present turmoil world wide, I am glad to be fixed and sad it is not 5 years. Why? The same logic I apply every time I fix: If rates go down, prices go up, so my pain (of say 1% over) is offset by CG. If rates...
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