Interest rates?

mrmina · Post by **mrmina** » Tue May 02, 2006 2:20 pm

diesel wrote:oh and mina,

i hope you're applying a reference rate to your loan so that your repayments increase gradually, or you're gonna get one hell of a shock when you come out of your fixed period.

i have no idea. hopefully i can win the lottery and pay it off within 3 years

i know that after the 3 years it will go to the normal which is 7.05%, but they said i can go on another fixed plan.

Stereo · Post by **Stereo** » Tue May 02, 2006 3:03 pm

diesel wrote:oh and mina,

i hope you're applying a reference rate to your loan so that your repayments increase gradually, or you're gonna get one hell of a shock when you come out of your fixed period.

Are you speaking english? I dont understand what any of that means.... Luckily Steph does....

gizmo · Post by **gizmo** » Tue May 02, 2006 7:41 pm

Felix wrote:I rent

Something I fortunatly never had to do, moved into my house & loan when I was 22 from Mum & Dad's with the help of my Mum & Dad!
But house's in the Desert/Roma were cheap in 98, now the land alone is worth about what I bought the whole lot for.

Post by **MadKaw** » Tue May 02, 2006 7:57 pm

I bought my first house when rates were at 18%...
It only got easier after that.....

Felix · Post by **Felix** » Tue May 02, 2006 7:57 pm

It's not all bad. When the hotwater blows up, I don't have to worry where I'm going to find the money to buy a new one, for instance (and it has happened).

While the interest rates are on the up, and there are a lot of vacant "investment" properties, it is a good time to be a renter...If we bought the house we are living in, it would cost us an easy $100 a week more in repayments than what we pay in rent...then add rates...pest control...and all the other piddly crap I ring the agent for currently...

ttc · Post by **ttc** » Tue May 02, 2006 8:27 pm

The disadvantage of buying is that i pay rates, $400 a quarter, body corporate $470 a quarter, and then mortgage on top of that

When i got kicked out I had two choices buy or rent, and i figured that buying would be more sensible and i could do what i want with the place.
So wrong, i could only afford a unit and the body corp virtually let me do nothing (i can't even a/c upstairs

)

I like the unit, have crappy neighbors, and have lots of bills..

I would have been easily able to afford to rent a house for what the unit costs me

gizmo · Post by **gizmo** » Tue May 02, 2006 8:49 pm

Felix wrote:It's not all bad. When the hotwater blows up, I don't have to worry where I'm going to find the money to buy a new one, for instance (and it has happened).

While the interest rates are on the up, and there are a lot of vacant "investment" properties, it is a good time to be a renter...If we bought the house we are living in, it would cost us an easy $100 a week more in repayments than what we pay in rent...then add rates...pest control...and all the other piddly crap I ring the agent for currently...

I don't think it works quite like that, the rent you pay is supposed to cover the owners bank repayments, maintenance like hot water systems/rates/pest control etc etc & if it don't your an IDIOT for renting your asset too cheap or maybe people are just lucky in the western QLD desert getting the high rent income for the house value's we have....?

You would see $150-$180rent per week easily for a $150 000 house around here & it use to be $200 week for $100 000 house, but damn city folk have been buying here & pushed the housing prices thru the roof..

gizmo · Post by **gizmo** » Tue May 02, 2006 8:51 pm

tanyathecheeky wrote:The disadvantage of buying is that i pay rates, $400 a quarter, body corporate $470 a quarter, and then mortgage on top of that

When i got kicked out I had two choices buy or rent, and i figured that buying would be more sensible and i could do what i want with the place.
So wrong, i could only afford a unit and the body corp virtually let me do nothing (i can't even a/c upstairs )

I like the unit, have crappy neighbors, and have lots of bills..

I would have been easily able to afford to rent a house for what the unit costs me

But your unit should appreciate in VALUE so in the end its still worth more than what you paid for it, obviously except for the bank interest.
& more importantly your not paying someone elses bank loan off....
Just gotta think long term people...

ozx6r · Post by **ozx6r** » Tue May 02, 2006 10:32 pm

tanya - whats the reasoning with not letting you put in an a/c?

Smitty · Post by **Smitty** » Wed May 03, 2006 9:50 am

09.30am May 3 2006

the RBA announce a 0.25% (25 point) increase in the base
cost of money in Oz...up to 5.75%

varden · Post by **varden** » Wed May 03, 2006 10:24 am

Well interest rates have gone UP!!!!

Sucks huh?

Tanya wrote: The disadvantage of buying is that i pay rates, $400 a quarter, body corporate $470 a quarter, and then mortgage on top of that

When i got kicked out I had two choices buy or rent, and i figured that buying would be more sensible and i could do what i want with the place.
So wrong, i could only afford a unit and the body corp virtually let me do nothing (i can't even a/c upstairs )

I like the unit, have crappy neighbors, and have lots of bills..

I would have been easily able to afford to rent a house for what the unit costs me

Ooooh i know Tan!!!

Rent the unit out and move into shared accom, at least then all your ownership costs become tax deductable!! The tax saving would prolly save you the cost of renting a room and you get to upgrade your neighbours.

Or better yet....rent unit out and buy another property somwhere else!

And don't say you can't afford it, where there is a will there is a way. (and a creative mortgage broker)

varden · Post by **varden** » Wed May 03, 2006 10:25 am

Oh and why are your rates dearer than mine??

Smitty · Post by **Smitty** » Wed May 03, 2006 10:31 am

Smitty wrote:09.30am May 3 2006

the RBA announce a 0.25% (25 point) increase in the base
cost of money in Oz...up to 5.75%

and the RBA have announced why.............

"International developments are continuing to provide stimulus to growth in Australia. The world economy is growing at an above-average pace for the fourth successive year and, significantly, forecasts have recently been revised upwards. Commodity prices have been increasing strongly for some time, and they have risen further in the year to date. This suggests a strengthening in the outlook for Australia's export earnings, with consequent expansionary effects on incomes and spending.

In Australia, domestic spending has been growing at a solid pace recently and prevailing conditions suggest that this is likely to continue. High profitability and rising share prices are indicative of a favourable business environment in which investment growth is likely to remain strong. There are also signs that the dampening effects of household balance-sheet adjustment on consumer spending are starting to wane.

Recent trends in credit growth indicate that households and businesses have continued to find it attractive to borrow at prevailing interest rates. After touching a low point in the September quarter, the growth of household credit has picked up over the two most recent quarters. Business credit growth has continued to trend upwards. A factor that is likely to have contributed to the overall strength of credit growth has been the continuing compression of lending margins by financial intermediaries over recent years, reflecting competition among lenders. As a consequence, although the cash rate has been close to its historical average, interest rates paid by borrowers have remained below average.

These domestic and international trends have added to inflationary pressures in an economy that has been operating for some time with rather limited spare capacity and low unemployment. Wages growth, though not accelerating further recently, is higher than it was a year ago, and businesses are continuing to report that suitable labour is scarce. Raw materials costs continued to increase strongly in the March quarter, reflecting the general strength in global commodity prices. Consumer price inflation has picked up to around 3 per cent in recent quarters. While this partly reflected rising fuel costs, underlying consumer price inflation also increased in the March quarter, to around 2¾ per cent, a rate it had not been expected to reach until the second half of the year.

Taking all of these developments into account, the Board judged at its May meeting that inflationary risks had increased sufficiently to warrant an increase in the cash rate.

... with my highlights

there you have it....

red_dave · Post by **red_dave** » Wed May 03, 2006 10:45 am

Less beer for Dave...

ant · Post by **ant** » Wed May 03, 2006 11:57 am

I own a rental, bought it when I was 19, and it is close to paying for itself.

Interest rates suck, that is all.