What will the rate cut mean for you?

WOW Can now afford sausages to go with the Aldi Noodles:)

Noodles! You were eating noodles? I'm SO jealous.
This rate cut will mean I can actually afford noodles :)
Seriously, though, I'd rather use the cash flow boost to service some more debt, if I can can get some.
 
We are around 1k/mth better off. Still CF-ve though. Does anyone know what happened last time rates came down quickly and suddenly (not that this has happened yet). I am assuming it would be better to hold onto all loans and even get some more property in case credit freezes up like some are predicting.

I am interested in peoples view where they see the following items heading in a quickly falling IR environment.

1. Rents
2. Property values
3. Construction costs
4. Credit availability
5. Inflation


Last time rates came down in this fashion, the PM came out and announced the great news... THIS IS THE RECESSION WE HAD TO HAVE. and the economy recovered, and then 10 years later we had a mother of all property booms.
 
Nathan I remember it well.
My past is pretty similar to your post.

Try having 10 + properties at 11% then going to 18%. In the 80's
The party had finished, the music had stopped. The cleaning and sorting had just begun


Only thing that saved me from going fully belly up was :
a increasing amount of overtime. Like try 5 double shifts a week. 16 hr days Plus On call when rostered off. But was young so loved it
As well as dumping some places before the Bank came knocking:eek:.

Holding for 9 years with NO Growth was a real cut to lifestyle. And very stressful.



This time around i will not be in the same position

Not bagging you. Just watch you don't get in over your head. I have been there a few times:eek:

As I think you will find a lot of older people here have also been:eek:

And a few new time investors on their first Boom Bust Trip.

Keep keen , keep setting goals. have a exit escape hatch:confused:

Thanks for posting your experiences.

Gee Cee

Older Fart
 
Nathan I remember it well.
My past is pretty similar to your post.

Try having 10 + properties at 11% then going to 18%. In the 80's
The party had finished, the music had stopped. The cleaning and sorting had just begun


Only thing that saved me from going fully belly up was :
a increasing amount of overtime. Like try 5 double shifts a week. 16 hr days Plus On call when rostered off. But was young so loved it
As well as dumping some places before the Bank came knocking:eek:.

Holding for 9 years with NO Growth was a real cut to lifestyle. And very stressful.



This time around i will not be in the same position

Not bagging you. Just watch you don't get in over your head. I have been there a few times:eek:

As I think you will find a lot of older people here have also been:eek:

And a few new time investors on their first Boom Bust Trip.

Keep keen , keep setting goals. have a exit escape hatch:confused:

Thanks for posting your experiences.

Gee Cee

Older Fart

Hi Gee Cee (old fart) hehe:)

This is my first BUST trip (catchy!~) I am doing exactly what you have done already. Having a baby though has held me back from working the doulble shifts, although I seriously thought about it.

Were the 9 years worth it?

Regards JO
 
They were worth it as they made me think more about what i was doing. As well i realised that cycles are where BIG $$ are made.

Learning by doing it out on the street certainly is better than doing some course.
But i guess now days you can learn heaps from others that have been there . (Although only 20% take any advise if that:rolleyes:)

So many times i just wanted to chuck it all in and do what everyone else was doing. But guess just a Capitalist at heart.

Gee Cee

Greg
 
Nathan I remember it well.
My past is pretty similar to your post.

Try having 10 + properties at 11% then going to 18%. In the 80's
The party had finished, the music had stopped. The cleaning and sorting had just begun



Gee Cee

Older Fart

Hi Gee Cee,

Am I missing something? Aren't rates going down? Not following your meaning for this comment? As a middle aged fart I would value your take on the current situation.
Cheers, Ian
 
YES Rates are going down.:) Anyone been through a Big Recession / Depression before :eek:

And holding Big debt as shares & property freeeeeeesalllls:(

May be just pessamistic at present




But Careful;)
 
Hi all,

Well, the RBA rate cut of 1% was certainly a shock for us - but quite welcome!! I'm interested to see what the rate cut will mean to you?
Its decreased my holding expenses & increased my cash flow by approx $13,000 p/a. :D
 
Try having 10 + properties at 11% then going to 18%. In the 80's
The party had finished, the music had stopped. The cleaning and sorting had just begun


Only thing that saved me from going fully belly up was :
a increasing amount of overtime. Like try 5 double shifts a week. 16 hr days Plus On call when rostered off. But was young so loved it
As well as dumping some places before the Bank came knocking:eek:.

Holding for 9 years with NO Growth was a real cut to lifestyle. And very stressful.



This time around i will not be in the same position ........

Gee Cee

Older Fart

Gee Cee, curious to know if you would have done it differently in hindsight, and what would you have done? As it is possible that there could be a prolonged period without growth coming upon us now the situation seems similar to that of the early 90's even though the interest rates are down lower.
Also, was it all worth it in the end? Other than the experience, would you say that you came out on top of it because you hung on until the next up cycle?

Wishllist

ps interest rate cut has improved my SNAF
 
Last edited:
I think what he means is that when rates are going up we are heading into good economic times and when they are going down the opposite. Like the government is trying to head off a recession.

Dropping IR will help your cashflow but property values will most likely fall in the near future. Cant have it all, its usually one or the other.

I was having a chat with a listing agent in QLD yesterday and he said for the first time in 23 years in the industry he cant see anything to drive property prices up for a looong time. Possibly 5 years.

Hi Gee Cee,

Am I missing something? Aren't rates going down? Not following your meaning for this comment? As a middle aged fart I would value your take on the current situation.
Cheers, Ian
 
I was having a chat with a listing agent in QLD yesterday and he said for the first time in 23 years in the industry he cant see anything to drive property prices up for a looong time. Possibly 5 years.

What, like rapid population growth, undersupply of dwellings?:rolleyes:
 
I was having a chat with a listing agent in QLD yesterday and he said for the first time in 23 years in the industry he cant see anything to drive property prices up for a looong time. Possibly 5 years.

evand

I would be interested in knowing what area/suburbs this agent operates in ..... have thought much the same myself in relation to the areas I'm familiar with. We are planning renos to two properties within the next 6 - 18 months - perhaps we may have to re-think our plans???

Cheers
LynnH
 
Back
Top