RBA Raises rates .25% to 5.25%
Dec 2nd 2003, 9:45 pm
#1
Thread Starter
Joined: Aug 2003
Posts: 11,149
RBA Raises rates .25% to 5.25%
Interest rates have just been raised another .25% and dollar is nearly at .73USD
http://www.smh.com.au/articles/2003/...351615577.html
This is where it gets interesting with the housing.
http://www.smh.com.au/articles/2003/...351615577.html
This is where it gets interesting with the housing.
Dec 2nd 2003, 9:50 pm
#2
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Joined: Sep 2003
Location: Maroubra
Posts: 753
Plus side - house prices will slow right up
Minus side - like a buffoon all my money is in the UK and the $ will go up on this news.
Minus side - like a buffoon all my money is in the UK and the $ will go up on this news.
Dec 3rd 2003, 3:57 am
#3
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Joined: Aug 2003
Posts: 11,149
Some interesting conversations from people at work who have overstretched themselves on property. Generally these people would be fine except they have bought investment properties. A loss of tennant would push their finances over the edge. The current rate rises are making them think of cashing in.
There is someone else who has land and their current property. They have ordered the builders in and combined with the rate rise has pushed them into the red. They have a redraw facility on their loan but that will last them 6 months.
They were thinking of holding their current property as an investment but are considering selling.
Another colleague who lives with his mum but has an investment property is going to have to stop going out at weekends.
A lot of peole are reducing their spending and it will be interesting to see the effect on the retail sector.
All anecdotal evidence but a definate change in sentiment from last year.
There is someone else who has land and their current property. They have ordered the builders in and combined with the rate rise has pushed them into the red. They have a redraw facility on their loan but that will last them 6 months.
They were thinking of holding their current property as an investment but are considering selling.
Another colleague who lives with his mum but has an investment property is going to have to stop going out at weekends.
A lot of peole are reducing their spending and it will be interesting to see the effect on the retail sector.
All anecdotal evidence but a definate change in sentiment from last year.
Dec 3rd 2003, 4:39 am
#4
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Joined: Sep 2003
Location: Maroubra
Posts: 753
Interesting isn't it.
We've got a bloke in our office who thinks that property can never ever lose you money.
Thing is all these folk with investment units are negative gearing for all they are worth. so they are running the place at a loss on the given that the price of the unit will sky rocket. This is fine in a booming market, but now they will be running at a loss whilst the value is also potentially falling - a lose lose scenario.
We've got a bloke in our office who thinks that property can never ever lose you money.
Thing is all these folk with investment units are negative gearing for all they are worth. so they are running the place at a loss on the given that the price of the unit will sky rocket. This is fine in a booming market, but now they will be running at a loss whilst the value is also potentially falling - a lose lose scenario.
Dec 3rd 2003, 6:23 am
#5
Thread Starter
Joined: Aug 2003
Posts: 11,149
Originally posted by RichS
Interesting isn't it.
We've got a bloke in our office who thinks that property can never ever lose you money.
Thing is all these folk with investment units are negative gearing for all they are worth. so they are running the place at a loss on the given that the price of the unit will sky rocket. This is fine in a booming market, but now they will be running at a loss whilst the value is also potentially falling - a lose lose scenario.
Interesting isn't it.
We've got a bloke in our office who thinks that property can never ever lose you money.
Thing is all these folk with investment units are negative gearing for all they are worth. so they are running the place at a loss on the given that the price of the unit will sky rocket. This is fine in a booming market, but now they will be running at a loss whilst the value is also potentially falling - a lose lose scenario.
Dec 3rd 2003, 5:02 pm
#6
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Posts: n/a
they mean that over, say a generation, you can't lose - it's just the cycles in between and rates going to 15-18pc..whilst you sit it out..
I think aussie rates went to 18pc. In the UK it was 15...?
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I think aussie rates went to 18pc. In the UK it was 15...?
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Dec 3rd 2003, 7:46 pm
#7
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Joined: Aug 2003
Posts: 11,149
Originally posted by badgersmount
they mean that over, say a generation, you can't lose - it's just the cycles in between and rates going to 15-18pc..whilst you sit it out..
I think aussie rates went to 18pc. In the UK it was 15...?
Badge
they mean that over, say a generation, you can't lose - it's just the cycles in between and rates going to 15-18pc..whilst you sit it out..
I think aussie rates went to 18pc. In the UK it was 15...?
Badge
