Fixing Interest rates after election results

[omegachild]

I suspect they'll hit ten percent at least. I'd fix mine.

 

[HandyAndy888]

Yes, remember Paul Keating..."the recession we had to have"...it will happen. But rates will drop thankfully...

 

[lizzie]

The problem with an economy that jumps from agriculture to skilled labour, though, is that you don't build up as big a middle class. India may have that problem: even greater income inequality.
Alex

china will be very interesting to watch in regards to wages and external skilled workers being imported for key areas.

hubby was asked to apply for a job in china - needs to make a decision before march08 - where the conditions were quite attractive. the massive manufacturing plants is prepared to pay above standard international wages to entice the specialist they require, and also including housing etc.

so we'd be looking in excess of $150,000 in wages plus an apartment - yet they same company is offering standard chinese wages for their chinese employees for the same job ... around $1-2,000/yr.

how long would it take for the locals to get upset and demand equality?

 

[FHB]

When I posted on this thread I was more worried about the hyperinflation. For a very long time China has been able to absorb rising material cost from Australia, Canada and Brazil, and export the items to everywhere in the world cheaply by artificial low RMB, and both China and India have been able to provide skilled labours at a very low cost. It seems that China and India can no longer hold back the inflation and they are passing on the inflation to us now. As for slowdown, there is still a high possibility that slowdown in the US will hurt China, because all stats quoted from Chinese officials are hazy.. We'll have to wait for Olympics to settle down before true news will be revealed. Despite all the effort from Beijing, I am not convinced that the development of rural areas is fast enough to absorb the excess of manufacture as the result of the US meltdown (concensus reached by numerous discussions with Mainland Chinese).

A good point, I wonder if a US led slowdown that affected China's growth would lead to a deflationary recession here. We have been relying on cheap imports and a strong dollar to keep inflation in check for a while, if these factors turn around it may take some time for inflation to die off, despite a slowdown in demand for resources.

We could go into stagflation for a period, but this all seems to be worse case scenario, I think China will weather the storm and Australia will maintain positive growth. Inflation should remain a problem for some time, IMO....

 

[MTo]

A wise strategy is to split 60-40, 60 for variable and 1-year to 3-year fix

 

[MTo]

Lets me show you the big picture...

And yes, China is currently controlling its currency by limiting Renmingbi going out of the country. The ideal time for China unleash its currency is after Olympic 2008. There will be two possible scenarios. First, China will still control its currency to maintain high exports while slowly increasing its Renmingbi (like what they do currently). Else, China will unleash its currency, rising its Renmingbi value by 50%-200% (its hidden potential), and the rest of the world will be hanging on the cliff crying for help.

 

[Ausprop]

it would be nice to leverage into chinese assets prior to the inevitable rise but am not sure how to do it. their stock market is a house of cards and property is a minefield. any ideas? chinese fine arts?? anythign with a yield?

 

[MickInvestor]

IMO fixing rates makes sense while they still remain relatively low. Fixing rates provides certainty over one of our larger expenditures and if rates do fall they are not going to fall as much as the potential rise from a historical perspective. IMO the benefits clearly outweigh any potential negatives.

 

[Lamingtons]

Any reason why fixing 2/4 years is not a popular option?

 

[dantheman]

Not available at all lenders, traditionally it's been 3 and 5 years. The big lenders such as the banks advertise the 4 year option more than the non-banks.
Now you can even get 15 year fixed rates A shame we can't predict the future that far though

 

[Lamingtons]

Thanks for that!!
I was going paranoid that I was doing something wrong.

I saw Homeside offering a discounted rate for 10 year fixed. LOL
Should be fantastic if we all had a crystal ball.

 

[topcropper]

it would be nice to leverage into chinese assets prior to the inevitable rise but am not sure how to do it. their stock market is a house of cards and property is a minefield. any ideas? chinese fine arts?? anythign with a yield?

Stick to BHP and RIO and Woodside would be my idea of investing into China.

See ya's.

 

[pi2012]

Already fixed for 3 years just before the last interest rate rise...