FreckleBlocked@freckleJoin Date: 2012Post Count: 1,681Nigel Kibel wrote:I think the problem is that it will be impossible for a retailer in many cases paying high rent and staff wages and commission to compete with someone with an online business.
No matter how far they lower interest rates, this will not change.
Now that I completely agree with.
Fixed rates are popular in NZ for some reason. Never been a fan of fixed rates. I like my pain slow and steady.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
Investors and home buyers alike often have short term memories
When i arrived in Oz in 1993 variable rates with certain lenders were up there at 18% and coming from the UK where housing rates in the UK peaked at 13.25%.
I thought all of my Xmas's had arrived in 1 go and with the GBP at 2.42 / AUS bought half of Brisbane.
Hindsight is a wonderful thing and as the setting of interest rates rely on so many economic measures i think if you are a person who panics and is concerned fix the rate now.
Loan planning and structuring is about building a model to enable you to ride out the good as well as bad times and risk minimisation is more important that trying to outdo a lenders treasure department.
There is no right or wrong time to fix as it all about personal circumstances.
My loan exposure sits at around $1.3M but i intend to pay that out in full in the next 18 months or so, i would never take a fixed rate. Others may have a loan of $100K and want the re-assurance of their monthly expenditure.
Yours in FinanceJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Yep, totally agree – it's different strokes for different folks.
If you need the reassurance, comfort and forward planning from a budgeting perspective, then fixed rates can be a good option – and at sub 5% now, it's not a bad offering. Will they go lower? Who knows.
JamieScott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,850
I got an email from a broker earlier today offering a 3 year fixed rate of 4.99%
Looks like things are moving in our favour when returns are higher than the interest rate even in the capital cities.