How Much will the Rate rise effect you ?

[Cap]

Just wondering if it will have any effect at all on people ?

I am looking to buy a home (and sell another in the process), I am simply hoping that it reduces the number of competitors in the market.

so is anyone predicting any negative effects for themselves or people they know ?

 

[Deej]

Will affect me a bit, as i'm looking at borrowing to fund a fairly decent extension/renovation on the house i bought earlier this year. All up when finished i'm suspecting i'll owe roughly half of what the house will end up being worth.

 

[HBF]

Not that much at all.
Split the mortgage 70 Fixed, 30 Variable, and have paid a great big chunk off the Variable loan.

 

[Ghostwriter]

House is paid for, am hoping rates go through the double digit barrier sooner rather than later, bought my first house when rates were 17 percent, I have felt interest rate pain before, now its time to inflict some pain on others, enjoy the stress suckers.

 

[de_LICA_ish18]

Doesn't bother me too much. I'm amazed that some people are living so close to the edge that they will lose their house just for the $20-$40 extra per month. Thats like an hours pay for most people.

I don't know exactly how much I pay on my homeloan, thats how much I care. I get paid on the 15th of every month and it comes out on the 18th. I don't even notice it.

 

[de_LICA_ish18]

House is paid for, am hoping rates go through the double digit barrier sooner rather than later, bought my first house when rates were 17 percent, I have felt interest rate pain before, now its time to inflict some pain on others, enjoy the stress suckers.

I love how people talk about the 17% rates of the 80's. Have a look at the what the housing prices have done in recent years. You probably paid virtually nothing for your house. Housing is far less affordable nowadays.

 

[Ghostwriter]

I love how people talk about the 17% rates of the 80's. Have a look at the what the housing prices have done in recent years. You probably paid virtually nothing for your house. Housing is far less affordable nowadays.

True but wages were far less then too, I was earning about a quarter of what I earn now.

 

[de_LICA_ish18]

Wages have gone up, but so has everything. Petrol Prices, Food Prices, etc.

The price of housing has gone up at a much faster rate than income. I earn a good income but as a "single" home buyer I could only afford to buy in the outer suburbs when I bought 3 years ago. If I was a few years older and got in before the pricing boom, I would have easilly been able to afford a home in my choice suburb.

The buyers of the 80's not only had more affordable housing, but also could afford to buy a house in a decent suburb. They are also reaping the benefits of the housing boom with the value of their property having sky rocketed. I know who's better off.

 

[1jasonoz]

I love how people talk about the 17% rates of the 80's. Have a look at the what the housing prices have done in recent years. You probably paid virtually nothing for your house. Housing is far less affordable nowadays.

People even before last weeks rate rise where already paying a higher % of their income in mortgage repayments than they did back in the late 80's when rates hit 17%.

This has now gotten even worse after last weeks rate rise.

 

[Bojangles17]

Not that much at all.
Split the mortgage 70 Fixed, 30 Variable, and have paid a great big chunk off the Variable loan.

same here with 65/35 fixed to variable....urge anyone to do it especially if planning family so one income for a while