like all the investors loading up on neg geared property because Oz had decoupled from the US and we were headed for the moon?
strategies need to be flexible. and if that is the case I think just make the best decision for the day.
Who believes fixed rates will be cut?
- Thread starter want2bewealthy
- Start date
like all the investors loading up on neg geared property because Oz had decoupled from the US and we were headed for the moon?
strategies need to be flexible. and if that is the case I think just make the best decision for the day.
pretty much sums up everything at the moment - all the D&G and all the rosy speculation... no one has a clue. It really wasn't long ago when Today Tonight was raving on about Perth's rampaging property market, the boom that would never end, petrol hitting $2 a litre and so on
how did FirstMac manage a 2.99% rate for 1 year when everyone else was about 2% higher?
i think there will be some sniping going on soon - if there's a large enough fall in the cash rate, the big 4 will hold steady and second tiers like Bendigo, BOQ, ING etc will be able to offer lower fixed raes to pull the remaining market share.
they'll have no features and huge break fees - but hey, i see opportnity for smaler lenders to pick up a large market selection.
i think there will be some sniping going on soon - if there's a large enough fall in the cash rate, the big 4 will hold steady and second tiers like Bendigo, BOQ, ING etc will be able to offer lower fixed raes to pull the remaining market share.
they'll have no features and huge break fees - but hey, i see opportnity for smaler lenders to pick up a large market selection.
Hi Aus
Sounds like you confuse strategy with tactics. A common mistake. Strategy is the big overall plan eg I will invest in property using buy and hold to build my wealth. Tactics are how you respond to conditions within that strategy eg I will now sell some property to reduce my LVR and manage risk etc etc
from Wikipedia (http://en.wikipedia.org/wiki/Tactic_(method))
The terms tactic and strategy are often confused: tactics are the actual means used to gain an objective, while strategy is the overall campaign plan, which may involve complex operational patterns, activity, and decision-making that lead to tactical execution. The United States Department of Defense Dictionary of Military Terms[1] defines the tactical level as
“ ...The level of war at which battles and engagements are planned and executed to accomplish military objectives assigned to tactical units or task forces. Activities at this level focus on the ordered arrangement and maneuver of combat elements in relation to each other and to the enemy to achieve combat objectives. ”
If, for example, the overall goal is to win a war against another country, one strategy might be to undermine the other nation's ability to wage war by preemptively annihilating their military forces. The tactics involved might describe specific actions taken in specific locations, like surprise attacks on military facilities, missile attacks on offensive weapon stockpiles, and the specific techniques involved in accomplishing such objectives.
Cheers
Shane
FWIW, I read last night in the latest edition of API that 75% of all loans for resi are currently on a variable interest rate.
Not a surprising stat WTBW. I would love to know what portion of that 75% even realize that the fixed rates have gone up. Some people I have spoken with have not realized until I told them. Would it have made a difference to their decision to remain variable?
Jo
Jo
Hi all,
bit of a newbie questions. I am looking to fix, based on my situation, and SANF - however im currently contracting. This may change in the coming weeks, but I was under the impression that switching to a fixed loan would requires refinancing - ie: another loan applications. I cant look at other bank atm because i have break fees for 3 years,s o it would stay with the same bank..
I am also on a 95% lend, so i wasnt sure if this would be a good idea.
Would this impact things, or is it a simple switch of products?
Thanks for any help.
bit of a newbie questions. I am looking to fix, based on my situation, and SANF - however im currently contracting. This may change in the coming weeks, but I was under the impression that switching to a fixed loan would requires refinancing - ie: another loan applications. I cant look at other bank atm because i have break fees for 3 years,s o it would stay with the same bank..
I am also on a 95% lend, so i wasnt sure if this would be a good idea.
Would this impact things, or is it a simple switch of products?
Thanks for any help.
interesting. so in a long term BnH plan you could be excused for selling a property if it helped you get to the end goal?
meaning also you could be a trader with a long term strategy to be left with a bunch of BnH stock
Hi Reach.
Don't know who your lender is but we fixed to loans on Tuesday with Bank S.A (St George would be same) as existing customers. We were not asked to fill in any forms re income, just shown where to sign for new rate. Hope it will be the same for you.
Don't know who your lender is but we fixed to loans on Tuesday with Bank S.A (St George would be same) as existing customers. We were not asked to fill in any forms re income, just shown where to sign for new rate. Hope it will be the same for you.
Absolutely. The strategy is the end result you are aiming for. The tactics are how you get there by responding to the environment you are in.
Cheers
Shane
if fixed rates go up again when the RBA meets in May i MAY consider fixing.
Hey BC
Didn't I read a post of yours a few days ago akin to: that if they go up in May, that you'd have missed the tipping point some 90 days earlier - or something like that?
Have you had a change of heart?Interested in your thoughts.
Jo
Didn't I read a post of yours a few days ago akin to: that if they go up in May, that you'd have missed the tipping point some 90 days earlier - or something like that?
Have you had a change of heart?Interested in your thoughts.
Jo
yeah that's right - i made that call and i still stand by it.
like i said, i'm not one to pick absolute highs and lows. i just recognise starts of trends and follow suit. it applies to everything i do - share trading, RE investment, deciding on mortgage rates - basically anything to do with money.
so if fixed rates go higher, then it's obvious that rates are looking to increase. i can wear another 25bp increase in repayments - it doesn't bother me - but i refuse to cop another 100 or so.
like i said, i'm not one to pick absolute highs and lows. i just recognise starts of trends and follow suit. it applies to everything i do - share trading, RE investment, deciding on mortgage rates - basically anything to do with money.
so if fixed rates go higher, then it's obvious that rates are looking to increase. i can wear another 25bp increase in repayments - it doesn't bother me - but i refuse to cop another 100 or so.
I reckon they put the fixed rates up to put the brakes on the mass stampede for them over the last few weeks.
Once the flood subsides, the rates should stabilise for a few months.
I'd say the end of the year, and maybe another rise when the next ineviatable stampede occurs if the variables even look like increasing.
Did I say penguins?.....
I'd love to know what the Banks have made this month from all the break-locks.....
Once the flood subsides, the rates should stabilise for a few months.
I'd say the end of the year, and maybe another rise when the next ineviatable stampede occurs if the variables even look like increasing.
Did I say penguins?.....
I'd love to know what the Banks have made this month from all the break-locks.....
I've heard that a few times but I don't know how much truth there is to it. Don't the vast majority of borrowers still tend to stay on variable? So not really going to slow down much business?
Heck it could even have the reverse effect, everyone starts a mad dash to buy/refinance before fixed rates rise higher. Probably pick up as much business as they would lose.
Here's another take...
I reckon they put them on to trick the majority of borrowers who were waiting for the "bottom" in rates before they fixed.
By lifting rates 25bp in a coordinated fashion they cause a flurry of borrowers to lock rates in at current levels before the true impact of the recession is felt and rates fall en masse by another 1-2% thereby locking borrowers in at higher rates with high break fees against the likely direction of future rates.
Just another take.
Cheers,
Michael
I agree with that Michael, I think as the Government is making it easier to refinance to another bank they saw a need to try and lock in some business and this is a way of doing it.
I was on the verge of fixing but now I will be riding the low variables for a while which wasn't my intention but I seem to have changed my mind yet again - along with some of those 'experts' who apparently don't know any better than I do!
I was on the verge of fixing but now I will be riding the low variables for a while which wasn't my intention but I seem to have changed my mind yet again - along with some of those 'experts' who apparently don't know any better than I do!
I reckon they put the fixed rates up to put the brakes on the mass stampede for them over the last few weeks.
Once the flood subsides, the rates should stabilise for a few months.
I'd say the end of the year, and maybe another rise when the next ineviatable stampede occurs if the variables even look like increasing.
Did I say penguins?.....
I'd love to know what the Banks have made this month from all the break-locks.....
I locked in 3 loans for 5 yrs recently before CBA put them up by 0.4%
One loan I fixed over the phone with my loans managers secretary, this showed up on my netbank about a week later.
The other 2 were LOC's ( I fully drew them out first) I asked my broker to convert to normal loans then lock in. These have yet to be locked in by checking my Netbank. I emailed the broker who spoke to CBA & they are flooded with locking-in requests & will get to it at some stage she confirmed even though they are not locked yet I will get the 6.24% 5 yr rate when they finally get around to it.
yes mate that's my thinking exactly. fool everyone intot thinking they missed the bottom, they lock in then the banks dont have to pass on any further cuts to those that do.
