RBA Lowers cash rate 25 BP

[westminster]

Why Melbourne, why not Brisbane or Sydney?

yep up to 9.25% (up from 9%).

Just me being a woose - it's the only place I really know besides Perth.

IMO Avoid Melbourne. Go Sydney.

Peter

Once I bed down my Perth projects I need to decide where to go next. I will keep an eye on Sydney but I suspect it will be Melbourne as it will be a development and I need to stick to a market and development codes that I'm familiar with.

 

[Deltaberry]

Money is already so cheap that affordability isn't an issue for first home buyers. Their challenge is putting together a deposit and a change in interest rates does very little to help that.

That's right. All it means is investors will continue to bid up properties until yields fall further because it's money for jam

Money money here it comes

 

[Deltaberry]

Rate Drop not a surprise but Banks giving the full amount

We really must be close to recession!

Peter 14.7

If there's a recession, and rates fall to 1%, but your house is tenanted, does that mean you retire?

 

[redwing]

Is this now a record low for the cash rate?

 

[Aaron_C]

Is this now a record low for the cash rate?

Lowest since 1959.

 

[Aaron_C]

Care to expand?

Yield curve has been negative for a long time and this is what prices bonds, bank bills, government debt etc.

 

[Rolf Latham]

Is this now a record low for the cash rate?

nah

ta
rolf

 

[tobe]

Surprising. I was betting that if another cut came, it'd be in Q3 or Q4 of this year earliest.

Given the state of things, I can't imagine more than another .25% drop (unlikely) before an eventul creep up again within 12-18 months. What's everyone else reckon?

Great timing as I'm very keen to grab IP#1 and lock in for a few years while they going's good.

But bad news for my ridiculous 15 years fixed PPOR loan (yeah, I know, worst decision ever, hence repeating it often to remind myself) which I'm wanting to break as soon as is feasible. Break fee is going to blow out beyond $40k (balance under $250k). Might be quite a wait on that one..

Is this loan for an investment property? Got the equity and serviceability to borrow an extra $40k? Got a high enough taxable income to make it worthwhile? Its tax deductable, so your tax rate, and the savings between the fixed and new variable will offset some of the break costs......

 

[willair]

Lowest since 1959.

Makes a person think back when I started,the rates were above 18% but short-term invested rates were above 10% so there was still a balance back then unlike today 4.50% is about tops in low risk short-terms bank interest rates and the balance is way out of wack,i just hope the Australian Public see this for what is is ..
5

 

[nhg]

Makes a person think back when I started,the rates were above 18% but short-term invested rates were above 10% so there was still a balance back then unlike today 4.50% is about tops in low risk short-terms bank interest rates and the balance is way out of wack,i just hope the Australian Public see this for what is is ..
5

Could you elaborate, I don't understand what you mean?

 

[Ausprop]

Could you elaborate, I don't understand what you mean?

yeh I second that. On that basis I don't think the public are seeing it the same way as willair?

 

[Deltaberry]

Lets all talk cryptically

 

[Richard Feynman]

Is this loan for an investment property? Got the equity and serviceability to borrow an extra $40k? Got a high enough taxable income to make it worthwhile? Its tax deductable, so your tax rate, and the savings between the fixed and new variable will offset some of the break costs......

PPOR at the moment but it will become an IP. I'm going to break when a) It's an IP and b) rates rise enough to make the hit worthwhile.

I'm only on annually at present, and no equity available, I've just pulled $60k (back up to 90% LVR) for my first IP.

 

[nhg]

lets all talk cryptically

miay ownday

 

[HotRod]

ANZ borrowers must be happy, rates cut by .27%. (me )

Their SVR now 6.13% which is the lowest of the big four and same as NAB.

 

[mumbai]

ANZ borrowers must be happy, rates cut by .27%. (me )

Their SVR now 6.13% which is the lowest of the big four and same as NAB.

Happy Happy times!!

 

[tobe]

I started a new thread I was so happy....

 

[Shadow]

Is this now a record low for the cash rate?

Not yet... A century of Australian interest rates - mortgage rates are not at historic lows or emergency levels

 

[Mr. Fabulous]

Most of the pundits seemed to be forecasting it.

The biggest surprise of all is that the eggheads guessed right for a change.

 

[Peter 14.7]

Ahhh... and here I am with $750k locked at 7.1% unitl Jan 2013.

Swings and roundabouts.... Peter 14.7