While many people are happy that rates have been reduced it is important that rates in the United States have been at zero and it has done little to drive there economy.
Secondly many people will now be tempted to buy properties that might cash flow at 6 or 7%. However many of these properties are in low growth areas and remember what comes down will go back up in other words considering that the average rate over the last 20 years has been over 7% I think that you should focus on high growth areas that are more likely to increase in value in the short term.
So it is important to remain balanced. No need to rush a decision
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
That's right banks don't care about you personally, they'll put the rates back up don't worry, they are the masters of money and they know how to get it back, that's their game.
I am very happy with the low interest…. all my IPs are cash flow +ve
Accumulating Blue chip shares from 2009-2010, now sitting 10+% fully frank dividend and growing
So.. Nigel.. your point is ???????
If you read what I wrote you would not have to ask
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
god_of_money wrote:Accumulating Blue chip shares from 2009-2010, now sitting 10+% fully frank dividend and growing
Unfortunately that could all change in the blink of an eye. I see the FED has leaked it's intentions to the WSJ on a QE windback attempt. That's going to make markets edgy and a whole lot more volatile. Currencies will also move with the FEDs shenanigans. Seems the smart movers are repositioning to currency sensitive stocks in anticipation of a dropping AU$. I'm not convinced the AU$ is as vulnerable as some say but if it does slip then the RBA could be forced to about face if inflation is seen as a threat. I'm not sure how it will affect bank borrowing costs in overseas markets but I doubt it will be cheaper so banks may move without the RBA.
Interesting times.
U.S. Banking for Mortgages
Banks are slightly loosening standards for many kinds of loans, and cutting into their own profit margins to try to make more loans, especially to businesses and real estate developers, the Federal Reserve says.
The central bank's quarterly survey of bank lending officers said most banks haven't made it materially easier to get business loans and commercial real estate loans in the last three months. But more than half of banks said they are accepting interest rates that are closer to what banks themselves pay for deposits, or other sources of money they lend out, according to the survey released.
John-USA-CommercialRE
Email Me
You must be logged in to reply to this topic. If you don't have an account, you can register here.
