expensive
#256
Forum Regular
Joined: Jan 2008
Posts: 164
Re: expensive
Oh I don't know Johny brought interest rates down from 17% and left Kev with an historical low unemployment rate.
First mention Brendan, next Johny.. I guess speaking about what Kevin is not achieving is a little embarrassing right now given today's rate rise. I wonder when Kevin and Swan are going to do something other than distract with the blame game and talk about the Libs? Old habits die hard.
First mention Brendan, next Johny.. I guess speaking about what Kevin is not achieving is a little embarrassing right now given today's rate rise. I wonder when Kevin and Swan are going to do something other than distract with the blame game and talk about the Libs? Old habits die hard.
#257
Aussie lost in the UK
Joined: Jun 2007
Location: Terrigal, NSW Central Coast
Posts: 682
Re: expensive
Oh I don't know Johny brought interest rates down from 17% and left Kev with an historical low unemployment rate.
First mention Brendan, next Johny.. I guess speaking about what Kevin is not achieving is a little embarrassing right now given today's rate rise. I wonder when Kevin and Swan are going to do something other than distract with the blame game and talk about the Libs? Old habits die hard.
First mention Brendan, next Johny.. I guess speaking about what Kevin is not achieving is a little embarrassing right now given today's rate rise. I wonder when Kevin and Swan are going to do something other than distract with the blame game and talk about the Libs? Old habits die hard.
Interest rates were at an all time low, unemployment low, booming economy....
The only place interest rates could go was up......... which is whats happening!
#258
Re: expensive
Well after the latest interest rate rise theres another reason to make Aus an unattractive place to move to
Roll on 10%
Lee
Roll on 10%
Lee
#259
Re: expensive
Just cant belive a major world government the Aussie ,telling citizens to snub the
Commonwealth bank because they have hiked interest rates more
than the recommended RBA RECOMENDATIONS just goes to show who
is calling the shots on interest rates ,the banks are squeezing the life
out of the situation and laughing all the way to there own front door
Commonwealth bank because they have hiked interest rates more
than the recommended RBA RECOMENDATIONS just goes to show who
is calling the shots on interest rates ,the banks are squeezing the life
out of the situation and laughing all the way to there own front door
#260
Account Open
Joined: Jan 2005
Location: Brisbane
Posts: 4,298
Re: expensive
Hi Tictac,
Assuming you had a mortgage fixed before the latest interest rate rises, 500k mortgage would be @3500. We know we could get a rental home (3 bed) for @500pw, but we moved to OZ to be near the beach so are on the north shore, where you cannot get a 3 bed house for much less that 800pw. Unfortunately, the nearer the beach the more cash, it seems.
Assuming you had a mortgage fixed before the latest interest rate rises, 500k mortgage would be @3500. We know we could get a rental home (3 bed) for @500pw, but we moved to OZ to be near the beach so are on the north shore, where you cannot get a 3 bed house for much less that 800pw. Unfortunately, the nearer the beach the more cash, it seems.
What you should be doing, is comparing the $800pw rent with the cost of the mortgage you would be taking out to buy the SAME house, which would probably be costing $1700+ per week in repayments.
#261
Banned
Joined: Feb 2008
Posts: 421
Re: expensive
Just cant belive a major world government the Aussie ,telling citizens to snub the
Commonwealth bank because they have hiked interest rates more
than the recommended RBA RECOMENDATIONS just goes to show who
is calling the shots on interest rates ,the banks are squeezing the life
out of the situation and laughing all the way to there own front door
Commonwealth bank because they have hiked interest rates more
than the recommended RBA RECOMENDATIONS just goes to show who
is calling the shots on interest rates ,the banks are squeezing the life
out of the situation and laughing all the way to there own front door
The Central Banks in the US and the UK are cutting base rates, yes; this is just a cover story really; so the high street banks and lending institutions can lower their savings rates whilst raising lending rates to borrowers, .i.e. mortgage holders etc.
The Central banks are helping the high street banks refund themselves.
By cutting the rates at which banks can borrow from the Central bank, the Central banks are trying to help banks generate more profits to Recapitalise themselves. They are short of cash you see? Like us all maybe?
We have a country full of expensive artifacts, but not enough cash to buy them; the printing pressess are at full tilt?
It is a capital problem the high street banks have, and capital can only be built by an injection of equity funds (i.e. a rights issue) or by retained profit.
I wondered whether this would happen in Australia, i thought maybe not, but maybe it is just starting to occur, very worrying, a sign that the bank lacks capital? It seems the high street banks are trying to create a bigger profit margin, even as the Central Bank raises it's rates in Australia, maybe they know what is coming there way, or are in to deep?
.
Last edited by brendarover; Mar 4th 2008 at 9:12 pm.
#262
Re: expensive
You can't say that "a $500k mortgage is cheaper than renting" and then compare it to renting a beach-side house that would cost $1m+ to purchase !
What you should be doing, is comparing the $800pw rent with the cost of the mortgage you would be taking out to buy the SAME house, which would probably be costing $1700+ per week in repayments.
What you should be doing, is comparing the $800pw rent with the cost of the mortgage you would be taking out to buy the SAME house, which would probably be costing $1700+ per week in repayments.
#263
Re: expensive
Oh I don't know Johny brought interest rates down from 17% and left Kev with an historical low unemployment rate.
First mention Brendan, next Johny.. I guess speaking about what Kevin is not achieving is a little embarrassing right now given today's rate rise. I wonder when Kevin and Swan are going to do something other than distract with the blame game and talk about the Libs? Old habits die hard.
First mention Brendan, next Johny.. I guess speaking about what Kevin is not achieving is a little embarrassing right now given today's rate rise. I wonder when Kevin and Swan are going to do something other than distract with the blame game and talk about the Libs? Old habits die hard.
Injecting cash into an economy is not a bright way of stimulating growth, it is short sighted unless done hand in hand with less inflationary measures – investment in infrastructure, for example.
K Rudd is playing the sh1tty hand he was dealt the best he can. I LOL at the bitter Libs turning round after 3 months, thumbing their noses and saying ‘you not doing much better’ when it is gonna take all of his first term to steady the good ship Australia. I only hope he can get this message across and win a second term – that is when the changes will start to take affect.
I remember the Tories coming up with similar lines early into Blair’s rein. They haven’t moved across parliament since!
#264
Lost in BE Cyberspace
Joined: Apr 2004
Posts: 10,375
Re: expensive
I hope someone deals me as sh!tty a hand, the guy took over with a 17 billion surplus, a booming economy, low unemployment.....
Rudd needs to stop acting like a 4 year old blaming his kindy pal for what is now his job. Would you expect to employ Senior Management and have them standing up 3 times a week whining this isnt my problem, I didnt do it, it wasnt me... OMG just get on with it man.
Rudd needs to stop acting like a 4 year old blaming his kindy pal for what is now his job. Would you expect to employ Senior Management and have them standing up 3 times a week whining this isnt my problem, I didnt do it, it wasnt me... OMG just get on with it man.
#265
Forum Regular
Joined: Jan 2008
Posts: 164
Re: expensive
I agree jad n rich it's getting boring hearing about Krudd's sh*tty hand he was supposedly dealt. Massive surplus, low unemployment and single figure interest rates.. rates Howard had to bring down from 17%. Now his followers are suggesting that he's going to need not just three months to get on the job but 6 years! Lol.. so for six years more blame game, more increases in interest rates and the usual Labour trick of saying how they have to fix things up by making things worse.
Interesting that when Howard was in power he was blamed for the RBA increasing interest rates and for global pressures as well. He's still getting blamed for it! Swan and Rudd have every excuse in the book for what's happening during their time. Oh.. it's the other guy's fault... it's talk of a US recession.. it's going to take years to do anything. Interesting too the first promise Krudd is going to keep is for MORE tax breaks. Hypocrite. How is his promise to excuse bank mortgage release fees in NOVEMBER going to help us now? Cheap rentable property? How is that going to help people get their very own home? More pretty speeches about taking responsibility yet still blaming everyone else.. how's that helping?
Interesting that when Howard was in power he was blamed for the RBA increasing interest rates and for global pressures as well. He's still getting blamed for it! Swan and Rudd have every excuse in the book for what's happening during their time. Oh.. it's the other guy's fault... it's talk of a US recession.. it's going to take years to do anything. Interesting too the first promise Krudd is going to keep is for MORE tax breaks. Hypocrite. How is his promise to excuse bank mortgage release fees in NOVEMBER going to help us now? Cheap rentable property? How is that going to help people get their very own home? More pretty speeches about taking responsibility yet still blaming everyone else.. how's that helping?
#266
Re: expensive
You could look at it another way Trixy, and I know you won't but.....
...there is now talk that the RBA may be done with rate rises so you could say awesome job Kev....you've managed to turn around Johnny's interest rate escalator (10 consecutive rises) after just 4 months on the job - amazing stuff!
Now I don't believe that argument....but its equally as plausible as your arguments about Rudd being entirely responsible for the current state of the economy, well just the bad bits I suppose, I'm sure all the good parts are still Johnny's legacy.
...there is now talk that the RBA may be done with rate rises so you could say awesome job Kev....you've managed to turn around Johnny's interest rate escalator (10 consecutive rises) after just 4 months on the job - amazing stuff!
Now I don't believe that argument....but its equally as plausible as your arguments about Rudd being entirely responsible for the current state of the economy, well just the bad bits I suppose, I'm sure all the good parts are still Johnny's legacy.
#267
Forum Regular
Joined: Jan 2008
Posts: 164
Re: expensive
You must have missed my other post bc world because I said exactly that! That Rudd will be glowing the moment a month of his leadership passes without an interest rate increase. He'll be warm in the knowledge his clever economic management has worked. Howard's legacy of ten interest rate increases took what? ... almost as many years? I'm scared. Rudd has been in for three and a half months and we've had two official increases and one bank alone one. That's running at almost one a month. He'll have caught up to Howard by October at this rate!
#268
Re: expensive
>>It is a capital problem the high street banks have, and capital can only be built by an injection of equity funds (i.e. a rights issue) or by retained profit.<<
There's capital and capital.
There is the capital that any business - including a bank - needs to set up branches, training, equipment etc etc.
But the capital we are talking about is the money lent to a bank and re-lent to, for example, a mortgagee. It is - or should be - totally separate from the capital of the bank itself.
Retained profit and rights issues are a matter for the bank's own capital funding - nothing to do directly with their mortgages etc. If the bank wanted to take over another bank it might raise capital by a rights issue, but if it wants to increase its mortgage business it has to get investors to place their money on deposit with it.
....... Northern Wreck......................
There's capital and capital.
There is the capital that any business - including a bank - needs to set up branches, training, equipment etc etc.
But the capital we are talking about is the money lent to a bank and re-lent to, for example, a mortgagee. It is - or should be - totally separate from the capital of the bank itself.
Retained profit and rights issues are a matter for the bank's own capital funding - nothing to do directly with their mortgages etc. If the bank wanted to take over another bank it might raise capital by a rights issue, but if it wants to increase its mortgage business it has to get investors to place their money on deposit with it.
....... Northern Wreck......................