Macfarlane is not just jawboning



From: Colin Mills

Two rate rises in just over one month - OK I'm now convinced the RBA Gov. is deadly serious about a SVR of 7.82% by March. (Just as an aside how come the RBA was not as transparent back in the late 80s? If they had told me then they were going to jack up rates to 17% I would have dumped every property I owned on the spot!)
So where to from here? Well, as somebody who works in the mortgage industry I can tell you categorically its going to knock out a hell of a lot of players. With an SVR nudging 8% you are talking a plug-in of almost 10%! YIKES! Do the maths! Work out how much your repayments will be for a new loan at 10%! An extra 1.25% from today will mean a huge reduction in the number of buyers. Some of my colleagues tell me there will be considerable pain for some of their existing clients especially the FHOG buyers.
$64 question. Will prices fall? In Brisbane I'd say no. Brissie still has one more leg left and I'm counting on 10%+ capital growth in the next year. Syd/Melb - more than likely prices will ease 5 to 10% over the next 9 to 12 months.
My two cents? Sit tight and wait for the bargains to appear.
One last point. The rates I have in CAVEAT EMPTOR need bumping up by 25 points.
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Reply: 1
From: Kristine .

Hi Colin

You can edit your own posts by going to the post and clicking on 'edit'

For your purposes, you could then identify that rates have been changed due to market conditions, or whatever


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Reply: 1.1
From: Gail H

Well, I for one look forward to being in a buyer's market again.

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Reply: 1.1.1
From: Simon St John

Here! here! I agree with Gail

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