We've been spoiled by all those 'professional package discounts' off the standard variable rate, which were totally independent of the RBA.
Now it's coming back.
Alex
No doubt. Just as mine i'm entering the market.
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We've been spoiled by all those 'professional package discounts' off the standard variable rate, which were totally independent of the RBA.
Now it's coming back.
Alex
No doubt. Just as mine i'm entering the market.
Not to mention what this will do to the longterm share-price..not to mention drives rents up, deflates the mortgage and inflates repalcement value (in inflationary environmnet).
Assuming they survived, what would you say to someone who bought a property in 1991?
I'd prob ask: "if you had your time over would you have bought then again or waited till later in the decade?"
And if that person had invested diligently, they would answer 'that first property? Yeah, I would have bought then again, because after that I bought a dozen more and now they're all worth x times what I paid'.
Alex
Do you honestly think they'd say that?
Or would they say "i prob would've held off for a short while and bought a little bit later"?
Yes those that bought in 1991 and held have eventually done very well. How was life for them during those tough years though. Why are those years worth less than the ones now when they have finally reaped the rewards of their earlier investments? Could those people have bought 5,6,7 years later and still made a very similar return on their investments minus the heartaches and tough times of the early 90s? Probably. Would they have rather done that? I think so.
Personally, I started buying in 2000. Ask me 'in retrospect shouldn't you have bought more earlier on?' With full hindsight, yes. You're basically asking 'would you have preferred to time your entry into the market perfectly to take advantage of the cycle?' Sure. But I realise that you can never do that, because I DON'T have a crystal ball. Instead, I bought when I could.
Would I rather have bought more in 2000? Of course. Do I have regrets? Not really. I did what I did for good reasons, and I have some decent results.
What I've observed is that in the long run people tend to regret the properties they DIDN'T buy, not the ones that they DID buy because they're making a lot from them anyway. But if someone is the type to complain 'Yeah, I'm rich but I wish I'd done it better so that I'm even richer', that's a whole new problem.
Alex
I think it's time to regulate the banks or to open up the market for the entry of more banks to increase competition.
They are taking our money and give us nothing in interest, then they give our money to someone else and charge 8% , they charge us fees for anything we do, they make billions and they want more?
This has to stop.
Stop, and then what? Have the government control all of our banking?
Alex
In an open market, competition works to favour the cosumers.
Here we have an oligopoly, the big four are taking us for granted
so their greed must be stopped.
I haven't checked other banking systems lately but I can't believe that this rippoff banking culture we have here would be left unegulated if it existed in the US, EU or other countries.
In the at call deposit market, I agree. The big 4 basically control the ATM network and charge enormous fees for access by any new institution, stifling competition.
In an open market, competition works to favour the cosumers.
Here we have an oligopoly, the big four are taking us for granted
so their greed must be stopped.
I do most of the above, but banking with a credit union is not as convenient because I don't have any loans with them. Additionally, trying to find a CU ATM could be an issue.So vote with your feet. Get a mortgage with the hundreds of other mortgage providers out there. Bank with a building society instead. Use internet banking.
Alex
Anyway, coming back to the topic I don't believe that the banks will stop here.
They have found an excuse to put up interest rates and to increase their profits so they will go for it.