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Interest Rates !!!!!!!!!!

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Buckley is ripped

Buckley is ripped

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Can anybody tell me if or when interest rates are going to come down ???
I here that they "may" begin to come down mid next year !!! i wanna buy a house and am wondering if a fixed rate is a good option but for how long ??? cos if rates begin to slide down soon then i'll just wait to buy then !!! i would appreciate help thanks in advance !!!!
 
It is hard to tell when they are going to go down. As you mentioned many people are predicting that they will start to go down mid next year. But that is a fair way off to predict what the market is going to be like. The way it is at the moment is that it is tough to decide to go for variable or fixed for a home loan. It is a gamble either way.
 
If any of us knew that, we'd be spending all our time making big dollars on the forex markets.

But it's still incredibly hard to predict. If you believe some of the media reports, inflation is going to become more of a problem as this 'world food shortage' gets worse. There was a headline in the paper today suggesting a rise of 20% in meat prices. If that happens, interest rates are more likely to go up, not down. Particularly if China has inflation problems, which will affect the price of a lot of our imports.

Whether to go for a fixed rate or not is just a gamble. If I was going to take out a loan, i'd look for a 3 year fixed rate simply to give me certainty in my financial planning.
 
Don't expect them go to down this year. If anything expect them to be at least 1% higher than what they are now by the end of the year.

But as other posters have said, nobody knows, not even the RBA.
 

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For me I went for a variable because I don't find my mortgage a financial burden so it doesn't matter to me if it goes up. I don't like it when interest rates rise but it's not going to put undue stress on me. However if my mortgage was more of a burden I would go for the fixed so that at least you know that you will be able to pay it.
 
This may sound stupid, but:

People are spending up too big on credit so Rates go up. Rather than tackling those that already have loans, can't the Govt slam the brakes on Lending Sector? Harvey Norman: No more Interest Free Loans for 6 months. CBA: you are halving your new loans for the next 6 months, businesses excluded on non-property expansion.

Is it is simple as that?

Inflation, well **** me, I don't think this will ever be able to be controlled again.

Unless magic oil fields suddenly appear or Inidia and China get nuked, the world is headed for a melt down. Staff shortages, food shortages, Ethanol fuel driving up grain prices, fuel costs rising impacting the cost of living, transport, fish, meat, wool... you name it, everything is going up exponentially.

I can't see any end to it. Inflation is here to stay.
 
Raskolnikov said:
For me I went for a variable because I don't find my mortgage a financial burden so it doesn't matter to me if it goes up. I don't like it when interest rates rise but it's not going to put undue stress on me. However if my mortgage was more of a burden I would go for the fixed so that at least you know that you will be able to pay it.
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As I said in another thread why not split the mortgage and have some fixed and some variable.

Risk managment.
 
acker said:
As I said in another thread why not split the mortgage and have some fixed and some variable.

Risk managment.
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I bought in November 2003 and went the 5 year fixed interest option. At that point my IR was 6.59%. I am probably looking at copping a variable of about 9.15% come years end. That is going to hurt. :(
 
bullish23 said:
I bought in November 2003 and went the 5 year fixed interest option. At that point my IR was 6.59%. I am probably looking at copping a variable of about 9.15% come years end. That is going to hurt. :(
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With a bit of luck come years end hopefully it has settled and may be ready to start heading down.

I bet some of the more hawkish variable rate investors will have a strategy re think next time the rates start coming back whenever that maybe.
 
shotgun_blues said:
I fixed for 10 years @ 7% in September 05 remembering the hardship my parents suffered in the late 80's.

I thought well if rates go either way I'll take 7% over possibly 5% or 15%.
Broker thought I was crazy but time will tell.

So far the decision is saving me about $100 a week..
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When your parents were suffering in the late 80's you could buy a block for 20k, build a decent house for 110k and voile' you had a house & land package worth 140k!

Now you can't buy a piece of dirt in the outer south-eastern suburbs of Melbourne for less than 180k depending on where you're looking (150k in West, probably about 190k in North). And then the developers put ridiculous building covenants on the design guidelines that add another 30k to the building price and we wonder why there's so many mortgagee sales?
 
Kernel Sanders said:
This may sound stupid, but:

People are spending up too big on credit so Rates go up. Rather than tackling those that already have loans, can't the Govt slam the brakes on Lending Sector? Harvey Norman: No more Interest Free Loans for 6 months. CBA: you are halving your new loans for the next 6 months, businesses excluded on non-property expansion.
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Short answer is they can't directly and wouldn't want to. If interest is the price of money and the reason behind interest rate rises is that the supply of money has reduced then stopping harvey norman and CBA from lending would only exascerbate that problem. The market, rightly or wrongly will work this one out and the more the Govt interfere's for political reasons the more they will **** it up!
 
Yet another reason for the RBA to lift interest rates!!!! Job security?

It seems that a stingray will fart in the water and there'll be another reason to raise the rates? I'm fed up with this as my last letter from the bank cost me another $200 per month! :mad:
 

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Having been through the late 80's interest rate hike to 17 percent, I'm happily sitting this one out, house paid for, its interesting to watch the new rich panicking about there new found wealth thats disappearing from underneath them. Sorry for sounding heartless.
 
jozeph said:
Having been through the late 80's interest rate hike to 17 percent, I'm happily sitting this one out, house paid for, its interesting to watch the new rich panicking about there new found wealth thats disappearing from underneath them. Sorry for sounding heartless.
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It is a little heartless to gloat about the financial mess which aggressive economic growth policies have created.
 
FrediKanoute said:
It is a little heartless to gloat about the financial mess which aggressive economic growth policies have created.
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The rich & not so rich that are panicking at the moment have only themselves to blame. Living beyond their means and not factoring in at least a 5% interest rate buffer before they have to search for a second job is extremely naive & foolish.

Heaven help this nation if rates went to 12 - 15%. Half the population would be in ruins.

Sorry that this sounds heartless but thats the way I see it.
 
I am about to buy my first home.

I am going to have 2 loans. Approximately 85% will be in a fixed rate interest only loan.

15% will be in a variable rate principle and interest loan.

That way we get the shielded somewhat against rate rises as the bulk is fixed plus we are able to do extra repayments on the variable rate loan should we be able to.

After 3 years hopefully the 15% would be pretty much paid off and then as the fixed rate loan has come up for renewal, we'd take anohter 15% out and do the same again.
 
I fixed mine at a 80/20 split late last year for 5 years in which time I plan to have the 20% well and truely paid off, so fingers crossed that things have settled a bit by then.
 

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delirious1 said:
Rudd put interest rates up to make him more money!
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I take it that Pauline Hanson is your accountant.

She once asked in an interview about how she plans to increase the low Australian dollar and she responded by saying print more money.

She would have to rival Bush as being the biggest dumb arse politician.
 
SolidTiger said:
I take it that Pauline Hanson is your accountant.

She once asked in an interview about how she plans to increase the low Australian dollar and she responded by saying print more money.

She would have to rival Bush as being the biggest dumb arse politician.
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Print more money=More money for everyone
I dont see the problem:eek:
i actually didnt know she said that...The Robert Mugabe of australian politics?
 
You stupid **** heads are borrowing so much money of course the powers that be and see are going to raise interest rates.

They have been ****ing warning us for years now, “stop borrowing so much ****ing money, live within your means, even if your brain power is so mean your living must be mean.”

Now they are simply bringing a belt to your idiot assess.

Some times pain can be instructive.

Enjoy it.
 
i'm not financial expert, but i caught a snippet on the radio that interest rates could go up again in the near future because unemployment rate has hit the lowest it's been in 30 years (ie people going to spend more money.)

i think the banks are just looking for any excuse really. but i don't really know much to be honest.

i'm sure all of you would pretty much agree that a major problem in all of this is credit cards. too many people spending big on them. i know someone who is only 23, living at home and is in 100k debt. Earns $650 a week and $550 of that is repayments on credit cards and loans. off topic a little i know, but it's situations like that, that would contribute to inflation i'm guessing.
 

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