I'll adjust rents to as much as the market will offer me as and when each IP becomes due for a rent review, irrespective of IR movements - up or down.
Did LL reduce their rents when IR were coming down? Hardly.
Westpac up by 0.45%
- Thread starter eggnog
- Start date
I'll adjust rents to as much as the market will offer me as and when each IP becomes due for a rent review, irrespective of IR movements - up or down.
Did LL reduce their rents when IR were coming down? Hardly.
At least, that's what they hope will happen. Obviously caught the others by surprise as they have uncharacteristically held off on their announcements. Now if they decide NOT to follow suit it will be an intersting situation WP has put itself in.
There's no effective competition to force them to make themselves look good. And let's not even mention IR on business loans
Look good to mortgage holders & govt, but not to shareholders or profit share employees.
Westpac has upped resi by 0.45%, but business loans by only 0.25%.There's no effective competition to force them to make themselves look good. And let's not even mention IR on business loans
Westpac is penalising mortgage holders & benefiting businesses. It's something the RBAs blunt cash rate tool can't do.
If all banks go up by the .45 maybe this will mean the RBA will decide against another increase in Feb seeing that the banks have doubled it themselves in one hit
how interesting - this certainly cast some new light over the tactic.
i may reneg my view.
None of them have made a move yet.... 48 hours after the RBA announcement... almost unheard of !
I reckon they're all sweating on the next one to announce... then they'll make a decision. They all want to look like the good guy by raising a tiny bit less than the others, so they need to others to move first.
Hopefully ANZ 0.25 Please
Has she?
What is see is this:
Westpac and CBA picked up (from reports) 80% of all the new FHO Business. Uninformed newbie buyers. Ripe for the picking.With the FHO boom over and bloated with new loans why be competitive?
Sting em up! Will they leave for 0.2%? No - and if they do HELLOOOO! early exit fee.
No I think Ms Kelly is very smart. Fatten the cow for slaughter.
Peter 14.7
gail got a nice bonus for her performance and so she should..............I dont agree with Worstpacs latest move, nor with their reduction in broker comms,not with their sometimes odd credit policy............but hey, its THEIR buisness, and someone else's money
ta
rolf
ta
rolf
As a WBC shareholder I am very impressed with their tactics through the GFC. They have been writing the majority of the loans in the growing OO resi market to date due to their low margins. Now they have a bloated loan book in this area with lots of people on variable they can just up the margins on them and know most won't move coz the difference isn't "that much". Now they have:
1 - A much bigger loan book than their competitors; and
2 - Now very similar margins =
3 - Bigger profits
I reckon Gail has done a stellar job. Their rates are now getting closer to the others but they will still make more money from this strategy than the others.
As a WBC customer, I am happy I have chosen to diversify my lender base, much to the chagrin of my "relationship manager" at WBC.
1 - A much bigger loan book than their competitors; and
2 - Now very similar margins =
3 - Bigger profits
I reckon Gail has done a stellar job. Their rates are now getting closer to the others but they will still make more money from this strategy than the others.
As a WBC customer, I am happy I have chosen to diversify my lender base, much to the chagrin of my "relationship manager" at WBC.
Much bagging of Westpac
http://www.smh.com.au/business/lower-rate-nab-applies-the-heat-to-westpac-20091203-k8sg.html
http://www.smh.com.au/business/the-day-the-lights-went-out-at-westpac-20091203-k8sb.html
However it is very "pollyanna" to assume the Bank cares.
SIgnificantly, reports are others will follow NAB, hope so.
We need competition.
Peter
http://www.smh.com.au/business/lower-rate-nab-applies-the-heat-to-westpac-20091203-k8sg.html
http://www.smh.com.au/business/the-day-the-lights-went-out-at-westpac-20091203-k8sb.html
However it is very "pollyanna" to assume the Bank cares.
SIgnificantly, reports are others will follow NAB, hope so.
We need competition.
Peter
