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Interest Rates Cut


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Houses round by me sell quickly, one been on the market a few weeks the rest all have under offer stickers across them, so money is about.

And we have a massive new housing development (Catalina Estat) just up Marmion opening up right now so the choice is there and they are moving into those while others are still being built, again money around from somewhere.

And just the ways up from that you have Alkimos estates popping up everywhere, again more money THEY DON'T BUILD UNLESS THEY HAVE A BUYER LINED UP.

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You mentioned the dollar was over valued I didn't say it wasn't necessary as rather a fan of a strong currency. Means a strong country. If you want this country to be a westernised version of a Thai theme park where tourists from Asia come to flaunt their wealth so be it.

 

You don't seem to look at the whole picture and I don't think increased tourism is the solution nor the generally low paid lobs created. It could be a small part of a far greater sought after solution. No I have not read many positives living in a land with a weak currency.

 

Perhaps you could think of some other ideas beyond the too often cited tourism as to why I should find contentment feeling poorer living in a devalued economy. (almost said country)

 

If you are a fan of a strong currency then why we're you not jumping for joy in 2013 when the AUD was at its peak. Your posts were doom and gloom then. Strong currency, weak currency. High interest rates, low interest rates. All makes no difference to someone who is focussed solely on house prices. There is more to an economy than the cost of houses.

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If you are a fan of a strong currency then why we're you not jumping for joy in 2013 when the AUD was at its peak. Your posts were doom and gloom then. Strong currency, weak currency. High interest rates, low interest rates. All makes no difference to someone who is focussed solely on house prices. There is more to an economy than the cost of houses.

 

Exactly. The narrative is already decided the actual news doesn't matter. Someone over there needs to buy him a beer and chill him out a bit.

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You are contradicting yourself. Do you advocate no interference in the housing market or do you advocate imposing taxes to interfere with the market.

 

I should also mention that in the UK there has been close to zero bank base rates since 2009. With the exception of London (often fuelled by purchasers without any mortgage) and the south east house prices generally have been fairly stagnant over those 6 years. Proving that low base rates doesn't automatically translate to a housing boom. There are other factors at play which you seem unable to comprehend.

 

My Niece and Nephew live in Melton Mowbray. They were one of the last ones to manage to get a 100% mortgage and are still waiting for the price of the house to get back to what they paid for it. That's with interest rates at record lows for how many years now?

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Does that, in itself, put a brake on house prices then Flag? If young people can't get a mortgage to get on the market there will be houses sat unsold. It's a supply and demand issue and if there is plenty of diverse property for sale I reckon that will lead to lower prices if anything. The rate of new home building doesn't seem to have slowed down in the Northern Suburbs, every time I go up Marmion there seems to be a new suburb I've not heard of before. Immigration has slowed, if the young can't afford it whose going to buy?

 

I'm afraid you don't really get it. Yes of course if younger folk are unable or unwilling to enter the market it will impact at some stage. The rate of buildings take time to slow from what was an enormous boom especially in WA. The latest cut may well entice further investors into the market. There are plenty of 'viewers' still looking in home opens. I realise this does tend to be a hobby with some but never the less, easy credit means of course there are takers. Doesn't mean to say they can afford it come a turn around and interest rates rise.

 

Take the bait and good clean debt. What could possibly go wrong? As I always say getting into a mortgage is the easy part.

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If you are a fan of a strong currency then why we're you not jumping for joy in 2013 when the AUD was at its peak. Your posts were doom and gloom then. Strong currency, weak currency. High interest rates, low interest rates. All makes no difference to someone who is focussed solely on house prices. There is more to an economy than the cost of houses.

 

I was over joyed at the exchange rate and purchased many thousands of US $ and GBP and Euro's to prove it. I was not in favour of the high costs associated with the boom and the greed that came with that. No in Australia there is little else at the moment sustaining the economy than the housing industry and as such interest rates have a rather large impact. Tell the government out here in OZ there is more than the housing market..... actually UK over recent decades it became something of a rage as well.

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The RBA do not want to stimulate the housing market but it is an unfortunate byproduct.

The aim is to encourage business to invest, employ workers etc and reduce unemployment and boost the economy.

 

Housing is slowing anyway so I don't see a big ramp up.

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We were one of these too. We sold last Feb at a £30k loss on the price we paid just to be rid of the damn place! We'd still be waiting if we hoped to make back the purchase price and god knows when to make a profit! We cut our losses so we could rent cheap and save up some money.

 

Speculation sadly does tend to be like that. Winners and losers. Now if houses were not seen as creators of wealth and places to live with slow inflation led growth we'd all be winners.

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The RBA do not want to stimulate the housing market but it is an unfortunate byproduct.

The aim is to encourage business to invest, employ workers etc and reduce unemployment and boost the economy.

 

Housing is slowing anyway so I don't see a big ramp up.

 

The RBA? How long have they been twiddling thumbs with a loss to know what to do? Next you'll be quoting our finance minister, yes the one that owns several houses and goes by the name Hockey. No doubt confirming the rise in house prices is creating wealth within the nation.

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The RBA? How long have they been twiddling thumbs with a loss to know what to do? Next you'll be quoting our finance minister, yes the one that owns several houses and goes by the name Hockey. No doubt confirming the rise in house prices is creating wealth within the nation.

 

Sorry to correct you again but the Finance minister is Mathias Cormann.

 

Joe Hockey is the Treasurer.

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My Niece and Nephew live in Melton Mowbray. They were one of the last ones to manage to get a 100% mortgage and are still waiting for the price of the house to get back to what they paid for it. That's with interest rates at record lows for how many years now?

 

What a bank racket that was 100% mortgages. /What people don't realise or chose to ignore is the encouragement of consumers to take loans and increase debt, even in the case of Australia where pay has largely stagnated and jobless on the increase. It is their business with little to lose with the burden on the punter taking out a loan.

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I was over joyed at the exchange rate and purchased many thousands of US $ and GBP and Euro's to prove it. I was not in favour of the high costs associated with the boom and the greed that came with that. No in Australia there is little else at the moment sustaining the economy than the housing industry and as such interest rates have a rather large impact. Tell the government out here in OZ there is more than the housing market..... actually UK over recent decades it became something of a rage as well.

 

So a strong dollar is good for you personally then. This should not be the primary factor when determining Australia's economic policy though. If the AUD is too strong long term it damages exports, stokes up imports thereby making local producers uncompetitive, and damages tourism. All of these are bad news for jobs. A weak dollar has different disadvantages. I think you will find that a balance is trying to be struck here. As you seem to know about these things what do you think the base rate that the RBA should be setting now and what should the AUD be worth against other major currencies.

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About 40 percent of Aussies own their homes outright and 30 percent rent. What about interest rates for renters who are saving a deposit or the many who have paid off their homes. To listen to the media you'd think everyone had a huge mortgage. Many have none or would benefit from higher interest rates to be able to save. As usual the indebted benefit!

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About 40 percent of Aussies own their homes outright and 30 percent rent. What about interest rates for renters who are saving a deposit or the many who have paid off their homes. To listen to the media you'd think everyone had a huge mortgage. Many have none or would benefit from higher interest rates to be able to save. As usual the indebted benefit!

 

True. It has been that way in the UK for years now. Lucky if you get more than 1% interest on savings. It also encourages people to take their money and invest in property (or something else that might achieve a better return)

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I'm surprised too....are interest rates at a historic low? I guess it lulls you into some kind of false security and when they go up you really feel the pinch....I welcome it as someone with a mortgage though! Unfortunately my bank always adjusts our payments so I need to keep paying the original amount for maximum benefit but that entails a phonecall and I never get around to it

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In the here and now I can only see it being a good thing.

 

I know people reading this thread may latch onto any doubt.

 

but honestly we have a certain poster, who can see doom in whatever light, and has for many a year:confused:

 

From ground level its all ok, Perth is doing fine. It's not a boom city anymore, but its doing good.

 

For anyone thinking of moving over, please don't be put off by the scared tactics of some.

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That block of land in Mullaloo would be worth about $800,000 now Jockintas. Have you still got it?

 

Dunnit want to make you spit??!!

 

Could have bought land at Avalon Drive, Mandurah in 1963 for £250 :cry:

 

Alan Bond bought 2 side by side in Perth, about the same time; that's how he started off...

 

Cheers, Bobj.

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Dunnit want to make you spit??!!

 

Could have bought land at Avalon Drive, Mandurah in 1963 for £250 :cry:

 

Alan Bond bought 2 side by side in Perth, about the same time; that's how he started off...

 

Cheers, Bobj.

 

Or in a more accurate context the beginning of the end!:wink:

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We are only two months away from it being three years since you first called the imminent collapse of Australia's economy...

 

Yes, If you are making me look back, not a bad prediction. If only our wiser men and ladies had vision and conviction, this could of been maybe different. Peachy Ald lad, you can't argue I was pretty accurate after what was said by the treasury. I didnt know at the time for sure, but the signs were there for all to see.

Shame you feel as though I was negative rather than just being factual and opening a discussion to help others coming over know what was in store. That's what I thought this forum was for. Get over it Ald lad and look to the future to see whats in store. Stop looking backwards.

 

Ps I was only commenting on a previous post but again get attacked from yourself. You make people want to quit this forum forever. I hope all that come over benefit and add to the strengths of Australia. They also need to know what the economy is like.

 

see ya Ald lad

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