2.00% cash rate and property and building will both go nuts.
Two banks now have announced passing on of full cut.
Two banks now have announced passing on of full cut.
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SMH said:NAB was the first of the big four banks to lower its standard variable home loans. It cut the rate by 25 basis points to 6.13 per cent per annum.
Commonwealth Bank also passed on the full rate cut this afternoon, lowering its standard variable home loan rate to 6.15 per cent with effect from May 13.
Westpac lowered its rates just before 5pm, bringing its standard variable mortgage rate down by 25 basis points to 6.26 per cent, with effect from May 20.
Just got a $15K pay rise. Noice.
lol...I guess that's why I'm not on seven figures working for one of the big banks....doh
2.00% cash rate and property and building will both go nuts.
If this were to happen wouldn't tenants be vacating in droves and buying their own homes (those with jobs anyway)? More people would be purchasing an IP that they once considered unaffordable, therefore more supply of rental properties. Rents would have to drop?
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..
If this were to happen wouldn't tenants be vacating in droves and buying their own homes (those with jobs anyway)? More people would be purchasing an IP that they once considered unaffordable, therefore more supply of rental properties. Rents would have to drop?
If this were to happen wouldn't tenants be vacating in droves and buying their own homes (those with jobs anyway)? More people would be purchasing an IP that they once considered unaffordable, therefore more supply of rental properties. Rents would have to drop?
The effect of the super increase from 9% to 12% from July 1 is looking to be straw that breaks the camels back for many that I'm aware of. Lots of Micro and small businesses closing down, either bringing retirement forward or just unable to keep going any longer. Might be different in the metro areas but I know most towns north of Newcastle aren't looking rosy.
Well that was a surprise! Talk on the town was for no move at all.
It could be very interesting for the Perth market - could put it into warp speed.
I want to get into Melbourne before it picks up much more.
The dopes who work at the big banks were the ones predicting no rate rise. However, those smarty pants who are paid even more and earn 8 figures are those who predict it and the bond markets show it.
Super isnt going up 3% on july 1, it is 3% over 7 years. If the business owners you know dont understand that then yeah its probably better they cash in their chips.
NAB passed the full rate cut: http://www.smh.com.au/business/the-economy/rba-cuts-interest-rates-to-record-low-20130507-2j52m.html
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.
The effect of the super increase from 9% to 12% from July 1 is looking to be straw that breaks the camels back for many that I'm aware of. Lots of Micro and small businesses closing down, either bringing retirement forward or just unable to keep going any longer. Might be different in the metro areas but I know most towns north of Newcastle aren't looking rosy.