Nice and all that, but our repayments are locked to our income at the time of taking out the loan, indexed to CPI. All interest rate changes do is screw with our loan term.
RBA Reduces rates by 0.50%
- Thread starter buzzlightyear
- Start date
Just thought about that for a sec and got confused. What is going on there? is it some sort of govt. incentive or something?
Surely lower interest rates decreases your loan term, right? and that's a good thing, right?
This happens when reserve banks make money out of thin air!!
The effects of currency devaluation.
is SA over supplied? I think the different cities are all over the shop in regards to stock levels. Perth is approaching undersupplied with listings dipping under 14,000. IMO a balanced market is around 17,000 these days
Hi All
Off property this is good news re economy wise if only in confidence.
On property, I punted 0.5% as the RBA was embarrassed by the banks last time when it did nothing, and Banks went alone and moved up.
It rocked the market by proving "you know, we can do it, and there is nothing you (RBA, Gov, customer) can do"
So this time if RBA went 0.25% the RBA risked banks saying "thanks, gulp, all ours, why? see above"
The RBA would go from foolish to irrelevant. Then the market would panic like EUROPE at each report on where the world was at as of that day. Not good.
Here they have made a safe bet that, yes, it will be only 0.35% or maybe 0.4% drop but it at least STILL be a drop.
I predict, without yet reading their notes, another 0.25% next month. Just to assert more authority. Another 0.15% will get passed. RBA can save face.
But lets not delude ourselves. Competition is needed, yet was closed down in the GFC buyouts of Bankwest, et all by the majors. Don't see that happening for while.
In the end , be innovative. "Valued customer" status is worth a discount of 1% of variable anyhow and most here should be getting that. If not, I can suggest my broker.
Regards Peter 14.7
Off property this is good news re economy wise if only in confidence.
On property, I punted 0.5% as the RBA was embarrassed by the banks last time when it did nothing, and Banks went alone and moved up.
It rocked the market by proving "you know, we can do it, and there is nothing you (RBA, Gov, customer) can do"
So this time if RBA went 0.25% the RBA risked banks saying "thanks, gulp, all ours, why? see above
"The RBA would go from foolish to irrelevant. Then the market would panic like EUROPE at each report on where the world was at as of that day
. Not good.Here they have made a safe bet that, yes, it will be only 0.35% or maybe 0.4% drop but it at least STILL be a drop.
I predict, without yet reading their notes, another 0.25% next month. Just to assert more authority. Another 0.15% will get passed. RBA can save face.
But lets not delude ourselves. Competition is needed, yet was closed down in the GFC buyouts of Bankwest, et all by the majors. Don't see that happening for while.
In the end , be innovative. "Valued customer" status is worth a discount of 1% of variable anyhow and most here should be getting that. If not, I can suggest my broker.
Regards Peter 14.7
I'm inclined to agree with others; there will be another rate cut in the next 3-6 months but that will probably be it, for some time head.
The alarmists are already citing 'extreme doom and gloom' in light of today's cut, and I've no doubt the sensationalist media will expand this further into property investment discussion & discourse.
I'm more an opportunist about it; I think it could stimulate some sectors of the economy, whilst hindering others.
You just need to be sure that you are siezing the opportunities in the 'stimulated' areas and you'll be fine
Cameron McEvoy - Property Spectator Australia, Contributor - Property Observer
www.propertyspectator.blogspot.com
The alarmists are already citing 'extreme doom and gloom' in light of today's cut, and I've no doubt the sensationalist media will expand this further into property investment discussion & discourse.
I'm more an opportunist about it; I think it could stimulate some sectors of the economy, whilst hindering others.
You just need to be sure that you are siezing the opportunities in the 'stimulated' areas and you'll be fine
Cameron McEvoy - Property Spectator Australia, Contributor - Property Observer
www.propertyspectator.blogspot.com
Bank of Queensland has made their announcement of a 0.35% drop in rates.
http://www.theadviser.com.au/breaking-news/7069-boq-cuts-rates
This was the bank who made themselves look like the good guys last month by saying they wouldn't change rates before any of the majors made an announcement.
http://www.theadviser.com.au/breaking-news/7069-boq-cuts-rates
This was the bank who made themselves look like the good guys last month by saying they wouldn't change rates before any of the majors made an announcement.
can't blame them - why should they drop rates at all? they should chuck them up a percent or two just to flex some muscle - the government has given them free reign to do whatever they like so why not? in fact it would almost be against shareholder intersts to drop rates - bank shareholders should form a class action!
That's a grossly unfair statement. ANZ announced late last year that they'd make their own decision on the second Friday of the month. This article is simply stating that they'll make their decision on the 11th (which they've advertised for over 6 months now) and the effect of that will likely be passed on a week later. They're simply being consistant with their advertised schedule.
Other lenders haven't come out with any schedule at all. If they're honest they'll make their announcement before the end of this week, but I suspect many will sit back and wait for the ANZ anyway.
I'd say the ANZ is actually likely to pass on a larger rate cut than the other lenders as their actions last month have given them the extra room to be compeditive now.
We'll see what happens with ANZ on the 11th.
Well I think it is fantastic and totally unexpected. I thought they would keep their powder dry. According to a few news outlets it looks as though the big four will be passing on 35 basis points.
Swan was on 7.30 tonight having a go about passing the full 50 on and so was Abott in a snip I heard. (Swan full of spin about how it hasn't been this low under liberal blah blah blah)
I think the majors will pass most of it on and the community banks all.
Bank of QLD I hear has passed on 35.
Good news I say
Swan was on 7.30 tonight having a go about passing the full 50 on and so was Abott in a snip I heard. (Swan full of spin about how it hasn't been this low under liberal blah blah blah)
I think the majors will pass most of it on and the community banks all.
Bank of QLD I hear has passed on 35.
Good news I say
from an overall perspective, do people think that a large rate cut = the bottom of the cycle/bottom of the rebound???
if i was a first home buyer or someone a little tight on finances and looking to buy, id probably take these rate cuts as a major encouragement to go out and buy
was hoping for a rate freeze so that I can buy a few more
if i was a first home buyer or someone a little tight on finances and looking to buy, id probably take these rate cuts as a major encouragement to go out and buy
was hoping for a rate freeze so that I can buy a few more
You still can there is always lag.
Making a bet
This is not the bottom yet, at least not in Victoria. Both federal and state governments are cutting the expenditure and jobs. No economic stimulus. More private sector job cuts announced every day... no confidence amongst the general population. All this results that house prices' decline will continue at least to the end of this calendar year.Let's see how right I'll be
Historically I have not have a good track record to act as clairvoyant Making a bet
Let's see how right I'll be
yeah, not sure about whether its the bottom or not but could be or not,
but maybe its the media but everyday talks of job cuts etc, I have noticed
job cuts are a part of life, so I dont like it how the media portray it as big heartless corporation cutting jobs for the sake of hitting hard.
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