Hi,
Just spoken to my loan manager whom informed me that the bank is rising the interest rates themselves, as much as .3% on fixed rates as from 31st December, I had to pay a $395 rate lock fee to secure the current rate, just because my IP does not settle till Feb 08'.
When will this end?
That is a question no-one can answer for sure.
Everyone has an opinion, and each one is equally valid. For my part, I don't think we have seen the end of the interest rate rises. A lot will depend on events overseas completely out of our control.
MargGlancing through my lenders rates today, I was interested to note that the variable rate was dearer than their fixed rates. Does this mean NAB views the economy as steadying up to the satisfaction of the rba?
S
Yeah, Adelaide Bank has added an extra 0.1% onto my loan.
9ball
CBA has risen 30bp on fixed and the "majors" will most likely follow in the next few weeks, not sure what variable is doing…no bank wants to be the first to raise, but will once the first has.
Cheers Matt
virgininvestor wrote:Hi,When will this end?
Never, unfortunately!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think it's much more important to maintain the big picture and make wise investment decisions than to focus too much on interest rates.
If an interest rate rise of up to 1 or even 2 % is going to financially devastate you, then perhaps you're in too deep, or have chosen a bad investment. The quoted 0.3% interest rate rise is tax deductible, meaning that it really only impacts you by about 0.2%. What is 0.2% in a strong investment portfolio? Trivial, I should hope! But maybe that's just me – I'm the eternal optimist
To put it into perspective, I believe the difference between a good and bad investment decision is at least 5 or 10% every year.Factors that people focus on (or conduct contortions of their situation to try and get) that I don't think are very significant in the big scheme of things, and shouldn't sway investment decisions:
* FHOG
* depreciation deductions
* negative gearing benefits
* interest rates
* property management feesFactors that I think can make a huge impact that sometimes receive insufficient attention:
* structuring
* quality of investment fundamentals (ability to tenant, capital growth potential)
* ability to continue to finance new investments
* cashflow
* paying off a mortgage instead of putting the principal into an offsetDoes anybody else have some lists of factors they wish to share?
Best wishes,
Tracey
To put it into perspective, I believe the difference between a good and bad investment decision is at least 5 or 10% every year.You must be logged in to reply to this topic. If you don't have an account, you can register here.
