From: Nigel W
The RBA raised the cash rate today by .25% to 4.5%.
Is this akin to trying to put out a raging inferno with a garden hose?
Is the market just too hot & crazy for this small rate rise to make any difference?
Will the rate drop in fact have the opposite effect to that intended, resulting in an increased sense of urgency amongst the herd of homebuyers and misguided investors slugging it out at auctions?
How big a rise is needed before people start really hurting? (I'm too young to remember the heady days of 18% interest rates)
Dust off your crystal balls and try to predict where the market's going.
My 2.2 cents worth is that we would need about an additional 2.5% rise for those geared to the max with a low yield property to really consider selling...other views?
Les, whip out that calculator!
N.
The RBA raised the cash rate today by .25% to 4.5%.
Is this akin to trying to put out a raging inferno with a garden hose?
Is the market just too hot & crazy for this small rate rise to make any difference?
Will the rate drop in fact have the opposite effect to that intended, resulting in an increased sense of urgency amongst the herd of homebuyers and misguided investors slugging it out at auctions?
How big a rise is needed before people start really hurting? (I'm too young to remember the heady days of 18% interest rates)
Dust off your crystal balls and try to predict where the market's going.
My 2.2 cents worth is that we would need about an additional 2.5% rise for those geared to the max with a low yield property to really consider selling...other views?
Les, whip out that calculator!
N.
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