dotty

Reserve bank just lifted interest rates (as expected), but only by .25%. (Now at 5%) Dollar seems to have go over 42p on it.

Economists are predicting a couple of .25 hikes ending up at about 5.5 - 6.0% which is still very low for OZ.

Anyway just an update as I know a few people watch this kind of stuff.

Loopy

Our mortgage advisor said on Monday he thought it would only be about .25 at the mo. Thank goodness he was right!
Some of us haven't got mortgage free living yet! One day...........

Loopy

RichS

the Bank of England also meet this week, and are tipped at 95% sure to raise UK rates. There is also strong pressure for the European Central banks to raise its rates also.

This should dampen the growth of the Aussie dollar, but will weaken the US dollar as they are due to stay static ( eg the Singapore dollar, so shopping trips trips to Sg will be a winner!)

Vicky88

Will be interesting to see how quickly the banks raise mortgage interest rates, I'd say they'll pass it on by tomorrow.

RichS

Lets hope so!!!

I'm still hanging out for that all elusive property crash. I need a real Hong Kong special to get me back in the game.

Otherwise I'll have to move north of the border to QLD !!!!! eek.

Vicky88

Add me to those who want a rate rise. We will be having a mortgage, but I am hoping that a rise will knock some of those who are overstretching, out of the game. Very selfish of me I know, but well that's life.

Jirrupin

Problems about rising interest rates just fade away when you are having soo much fun in paradise

More seriously though we are also hoping for a further rise in interest rates, also hoping for employment, better exchange rates (very soon, as the bank balance is disappearing), also hoping to find a house we want to live in at a price we can afford. Also hoping to win the lotto.

janeyray

Oh yeh, I know just what you mean!!

We are on a 'honeymoon period' with our mortgage here (Perth) and only pay 5.800% (ONLY!!!!!!!!!!!!!!):scared:
As we are returning to the UK next year and will not be staying to complete the 'honeymoon period' I have to change this rate over the next few days to the standard rate of 6.07%!!!!!!!!!!!

Cheap, when you're in paradise

MrsDagboy

You think 6% is high, Janeyray? Should have tried it 10 years ago when rates were at 18% . Im hoping it will get up to about 7 or 8%, that will get rid of alot of the property speculators & people who cant afford their mortgage, so I can buy some property at a reasonable price

renth

That's exactly what I'm hoping for too.

And the exchange rate to go back to 2.7 to 1

And the UK property market not crashing so I can still sell my house for what it's worth now.

Still, heres hoping....

downunderpom

Was that only 10 years ago? Seems more like 1987 or thereabouts? I may be wrong. (It happened once in 1972...)

I'll be glad to see property prices come to a more reasonable level. There are companies advertising on the radio in Sydney for 100% loans, PLUS the stamp duty! What sort of desperation would it take to make people go for that sort of loan? They advertise it as SPINS - SPectacular Income, No Savings. Well, if you've got a 'spectacular income' surely you can save a reasonable deposit within a year or so? Otherwise it's not THAT bloody spectacular!

It's people who've stretched themselves that far who are going to come short.

MrsDagboy

DUP, you're right, it was late 80s early 90s, so 10-15 years ago, dotty & I were discussing this a while back. I remember having over $1000 repayment on a loan of $70K, alot of money per month back then! Imagine the repayments on todays mortgages of $200+k?

renth, yeah Im dreaming as well, we dont have a property in the Uk anymore thank god, but we do have money in the bank there now, the difference between 2.4 & 2.9 for us is about $5000, not chicken feed! Leaving it there for now, might just leave it & use some of it when we go back for a holiday probably early next year.

RichS

The comparison with the interest rates of 89-91 is not valid as a simple comparison.
The economic forecasts I have read say that due to the much higher rate of personal debt around now, the interest rate would only have to reach 8% over here to equal the effects of 17-18% in '91.

I feel we should close this post now lest the 'hallowed soil' brigade descend upon us once more and thrash us heartily around the head and buttocks with a wet kipper for daring to let the cost of housing and loans be made public. We might be called whingers for suggesting that its not so cheap here either (in fact if you're in sydney its impossible).

downunderpom

I've heard it said by some that an interest rate rise of 2% could send a lot of people to the wall, as they're so overstretched.

Knickers to them! Welcome to the real world! Most if not all of the posters to this thread have mortgages in Oz. We are the only ones (Australian mortgage payers, that is) who are personally qualifed to comment on this subject. For anyone else it's an opinion - costing nothing, worth nothing.

NOW duck!!

MrsDagboy

Rich, that was exactly my point, if they think its hard now, imagine what it will be like when interest rates rise, I doubt it will ever get anywhere near 17% again, but its still a valid comment. I wasnt doing it as a comparison, just a general comment. As I said, Im waiting for rates to get to 7-8% (up 1-2%), cos I think there are going to be some people in BIG trouble!

As for hallowed soil etc, I think most people still in the UK that post on here do actually realise what the housing market is like here now . If they dont believe us they can look at the real estate sites, I doubt if they lie as well . If they still dont believe it then thats their problem, or rather it will be their problem when they land!

As for it being impossible in Sydney, not everyone lives in that ratrace