All Topics / General Property / Interest Rate Increase

Viewing 20 posts - 1 through 20 (of 23 total)
  • Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Well guys in case you didn’t hear the RBA increased the official Cash Rate this morning by 25 basis points.

    If BillfromOZ would like to square up our wager that they wouldn’t increase them 50 basis points a cheque or postal order would do nicely. Alternatively a brown paper bag is also acceptable.

    Who is for double or quits in January

    Cheers Richard
    [email protected]
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    I’ll bet a million bucks that there will be no rate increase in January!![:D]

    Now, February, I won’t take you up on that one!!

    Cheers
    Mel

    Profile photo of maximusmaximus
    Member
    @maximus
    Join Date: 2003
    Post Count: 189

    I’m with Mel on this one. In fact I’ll bet everything I own on no rate increase in January.

    Regards

    Marty

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Im not putting any property up for bets, but i do bet the rates will go up in January. Im still betting at the end of 2006, that some lenders and banks will be or near at 10%

    cheers
    s.i.s

    Save on a regular basis
    “People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”

    Profile photo of maximusmaximus
    Member
    @maximus
    Join Date: 2003
    Post Count: 189

    Come on Mel, lets fess up. The Reserve Bank does not meet again until February, so logically there can be no rate increase until at least then.

    Marty

    Profile photo of melbearmelbear
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    @melbear
    Join Date: 2003
    Post Count: 2,429

    sis, when in January do you think the rates will go up?

    Cheers
    Mel

    Profile photo of Still in SchoolStill in School
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    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Hi Melbear,

    either mid to late January, but if not i wouldnt be surprise by if the banks begin talking and sneaking up the rates another .25% by then. Its kinda obvious if the RBA are talking about interest rates rising the banks will begin to step in and will begin fixing interest rates at a higher rate to protect them selves, this also applies to the variable rates too.

    Another rate rise i see.

    cheers
    s.i.s

    Save on a regular basis
    “People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Marty, you spoiled the fun!! I did have that in my post, but then I thought I would ‘mess’ with sis a little bit.

    Sis, read maximus’s post. We are only talking about the ‘official’ cash rate. There will be NO rate rise in January. The RBA board meets on the first Tuesday of every month, except for January. Any rate rise is announced on the next day. There is NO other time that these decisions are made.

    Cheers
    Mel

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    lol very funny and deceptive you are Melbear,

    lol ill be reading your post more careful next time.

    cheers
    s.i.s

    Save on a regular basis
    “People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Mel

    Thanks for letting the RBA cat out fo the bag I had intended to clean up.

    Cheers Richard
    [email protected]
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Hey Richard, don’t blame me, maximus spilled the beans first.

    Besides, I read your post as you were offering the odds that there would be a rate rise in January, which is what I was willing to bet on.

    Cheers
    Mel

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Mel

    No as I took the money off Bill i was offering odds on there not being another increase.

    Cheers Richard
    [email protected]
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Don’t forget team that the banks can move the fixed rates up and down independent of the RBA announcements. This recent fixed rate rise was in expectation of todays announcement.

    I do think fixed rates are nowhere near as attractive as they were a month or so ago.

    Cheers,

    Simon Macks
    Mortgage Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of westanwestan
    Member
    @westan
    Join Date: 2002
    Post Count: 1,950

    hey richard how much did you make from Billfromoz?
    SIS 10% by 2006? anything is possible, but i’d expect rates to be about where they are now. we might even see them below where they are now, with inflation very low it would kill the economy to have expensive money, especially as many are expecting a tougher time ahead in the about 18 months.
    westan

    Profile photo of FatBoyFatBoy
    Member
    @fatboy
    Join Date: 2003
    Post Count: 185

    westan: It was a bottle of red from memory ?? [?]

    Cheers,
    Paul…

    “I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”

    Profile photo of lazyboylazyboy
    Member
    @lazyboy
    Join Date: 2003
    Post Count: 23

    Any bets on the RBNZ rates due tomorrow ?? as nz is now lower than Aussie’s. When was the last time that happened [?]

    Profile photo of westanwestan
    Member
    @westan
    Join Date: 2002
    Post Count: 1,950

    Lazyboy whats the expectation in NZ[?]
    westan

    Profile photo of lazyboylazyboy
    Member
    @lazyboy
    Join Date: 2003
    Post Count: 23

    My pick is that they will leave it at 5% untill end of Jan, But with the Aussie going another .25 it will put even more pressure on . Inflation is not a problem at present, so the only reason they will lift it is to slow the property market down

    Profile photo of lazyboylazyboy
    Member
    @lazyboy
    Join Date: 2003
    Post Count: 23

    Westan,
    Had any more thoughts on “S….” and “W….” in NZ.

    Profile photo of DinoWebDinoWeb
    Member
    @dinoweb
    Join Date: 2003
    Post Count: 59

    Many people still remember the >15% interest rates of the late 1980’s, but it is unlikley that rates will ever go that high again due to de-regulation of the banking industry.

    Previously, the major banks added about 7% to the official rate, but this has now come down to about 2%, due to substantial competition from other lenders (Thanks Aussie!)

    For mortgage rates to reach 10%, the Reserve bank will need to lift the cash rate to 8%, or 60% above what it is now.

    The RBA’s primary reason for the current increases seems to be to reduce investor spending in real estate. This is already happening.

    I’d also suggest that a desire to curb the annual credit splurge for Xmas had a part in the latest rise as well (two birds with one stone).

    With continuing long term low interest rates in the US, it is unlikely Australia will lift it’s rate much highter.

    Lenders will not lift their rates too much further above the RBA rate unless property becomes a riskier investment (ie too many investors caught out in the curent boom defaulting on their loans).

    All the above comes from press reports and published articles easilly available on the web, and is not necessarily my own view.

    IMO therefore, rate rises of more that 0.5% are unlikely, and I would guess that they may even come down again within 12 months, assuming the level of investor spending in real estate decreases substantiatlly in the coming months.

    Dino

    “If you don’t know where you are going, every road will take you there.”

Viewing 20 posts - 1 through 20 (of 23 total)

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