Interest rate rises behind record property drop
 

MELBOURNE'S property prices have plunged 8.4 per cent, or a record $40,000, since the start of the year.

Official figures show the median house price for the March quarter was $432,500, down from $472,250 for the previous three months.

HeraldSun

But of course, it'll never happen here...

Re: Interest rate rises behind record property drop
 

Everybody is now selling houses in melbourne.Why?

Re: Interest rate rises behind record property drop
 

Too many for sale in Perth too, everyone is selling up, why??

Re: Interest rate rises behind record property drop
 

Top of the market, or rather it was six months ago. All the johnny-come-lately buy-to-letters are trying to cash their chips in, but just a little too late.

Re: Interest rate rises behind record property drop
 

True...we cause the boom, we cause the doom!

Re: Interest rate rises behind record property drop
 

Correct me if i am wrong aint you supposed to solve a problem with actions
the Rudd & Swan government are raising interest rates to keep inflation at
bay IT AINT WORKING Thay are chasing there own tails on this But and
this is a Big But thay cant reverse the policy because it is political no
goer as thay will look stupid Of course food prices Petrol Mortgages if you
can get one try that its a laugh if your a first time buyer Companies and businesses are payin more to produce so it is passed on to the public
House prices will fall how high can he put up rates 17.5 percent like his
mate keating

Re: Interest rate rises behind record property drop
 

I don't think that the government has anything to do with interest rates....

Re: Interest rate rises behind record property drop
 

yer and bears dont crap in the woods

Re: Interest rate rises behind record property drop
 

Like the UK, interest rates are set independently although the gov't must have some influence on the Reserve Bank (or BofE in the UK) and the Central/Reserve Bank will act on inflationary pressures caused by gov't policies.

To say that raising int rates won't stop inflation is wrong. If people or businesses have got less money due to higher mortgage costs or the higher cost of taking out or servicing loans and credit, then consumption and expenditure is reduced which means there is less demand for goods and services so prices should stablize.

In the UK house prices are dropping despite lower interest rates. If int rates were higher, house prices would implode even more.

Re: Interest rate rises behind record property drop
 

Your talking about the the wrong country ??The RBA The reserve bank of Australia set official interest rates

they are officially independent and have been for some years now
but at the moment the banks are not taking notice thay are raising them with
the excuse the credit crunch is hurting Rudd and Swan do influence the setting to balance the countys inflation and to think otherwise is misguided

Re: Interest rate rises behind record property drop
 

Maybe I've misunderstood you, but I thought I said in my earlier post that int rates in Australia were set independently by the Reserve Bank.

Re: Interest rate rises behind record property drop
 

Has there ever been a time when mortgages could be 'sold on' leaving no risk with the original lender and sold on to those who did not realise what they were buying.
NO, there has not, and unsurpringingly it resulted in 125% loans to all a sundry, which in turn resulted in MASSIVE rises in house prices.

THIS HAS NOW STOPPED and lending is reverting to normal, well in the UK, anyway, what is happening in Oz, i do not know, but there must be an impact.

An interesting article, money creation as debt, you have to laugh, we are all working for the banks, slaves to the bankers, they rob us like Dick Turpin, using there inflationary gun?

http://www.webofdebt.com/articles/dollar-deception.php


The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin . . . . Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of a pen, they will create enough money to buy it back again. . . . Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. . . . But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.



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Re: Interest rate rises behind record property drop
 

Whats happening in Australia is panic ,we have one of the most
overvalued property Markets in the word outside of Uk and a few others
but not the global financial infrastructure
Asia is at are door Japan South east asia you only need to watch
Squark box or Bloomburg to see Australia is the poor relation in Asia Asia not UK


Due to a popular misconseption Australia is not a Vacation resort next to the isle of white
but slap bang on the end of Asia