Another Interest Rate Rise!!!!!

[GOTMYN]

I don't know about you guys, but these interest Rate rises, are a bit of a worry!!!

When is it going to stop??

Everyone Blamed Howard for the recent rises, and now he's gone, the Banks do it themselves!!

Time to Get my Home Loan fixed!! before its too late!!

Look at Oil Prices, we are in for hide times by the look of it....$1.50 a litre for Unleaded by next week.....????!!!!!

before you know it, we will all have two jobs and just scraping by!!

Sometimes make you wonder if buying a house was a good idea!!

What's your thoughts??

[vlv8vic]

crap happens. Doesn't matter how high it goes I'll find a way to keep the houses. I think thats just part of owning property. Don't buy if the worst case scenario will take it away.
I based it on the last interest rate high when Keating was in.

[cano1]

how are all the young kids gonna be when they grow up and start a family??its gonna be ****ed

[Bravotwozero]

Well nobody likes a rate rise so I won't say I'm stoked about it, but they can't stay at record lows forever. The folks that mortgaged themselves to the hilt when they were at record lows will be struggling soon.

[Kikki]

With the price of house's and intrest rates we literally have NO chance of buying a house any time soon.

[itsonlyme]

man everything is on the rise, I think everybody is going to either have to take it easy on the pleasure part of life and start working for a promotion

[minux]

These interest rises are only within NAB for now. It is simply because so many people are mortgaged to the hilt along with massive personal credit. The housing shortage is causing a massive drain on borrowing for institutions, somebody has to wear the costs. In the end, that is the consumer. Personally i'd like to see interest rates higher, people are spending more than they can afford, maybe higher rates will make people realise you can't keep up with the jones on a 60k salary.. I can count on one hand the people i know who wouldn't be affected by interest rate rises to 13%.

[AttaBoy]

Why would you like to see higher interest rate? What about people who don't earn much, they are going to be suffering quite badly. Since its not only interest going up , but to mention other things like fuel, food etc.... (Higher cost of living)

Higher interest probably just going to drive people away from the banks anyway.

[minux]

Why would you like to see higher interest rate? What about people who don't earn much, they are going to be suffering quite badly. Since its not only interest going up , but to mention other things like fuel, food etc.... (Higher cost of living)

Higher interest probably just going to drive people away from the banks anyway.

If people cant afford these interest rate rises they have obviously exceeded their budget anyway. As i have said many times, we budgeted for interest rates to hit 15% on every property we buy. After that we have to start dropping luxuries.

I know of people on 60k a year who own a new SS, a 400k home and live week to week. It is plain outright stupidity, not everyone can have the best of everything, sometimes you have to draw the line. With how much personal debt people have now it may just shock people back to reality. Times never will be always good, you need to allow for the bad, which obviously a lot of the population hasn't.

I also have personal reasons that benefit me, after all, the only thing i care most about is what is best for my family.

As for the banks, who will people turn to? Private lenders? They get their money fromt he banks, so ultimately they have to charge the same.

[AttaBoy]

LOl you post reminds me of my uncle who earns around 50 - 65K a year and has a half a million house with a crap box corolla and an old ford mondeo in a massive garage.

[minux]

LOl you post reminds me of my uncle who earns around 50 - 65K a year and has a half a million house with a crap box corolla and an old ford mondeo in a massive garage.

Obviously he cant afford the nice cars yet. I presume he has a stringent budget that he sticks to? If so smart man. Not everyone can have the best!!! In time though with smart planning you can. Heck i'd love to have something like a 2004/5 M5 in my shed, could i afford it? Possibly, but if interest rates went up a 1/4 % like they have i'd be filing for bankruptcy

[Bravotwozero]

If people cant afford these interest rate rises they have obviously exceeded their budget anyway. As i have said many times, we budgeted for interest rates to hit 15% on every property we buy. After that we have to start dropping luxuries.

I know of people on 60k a year who own a new SS, a 400k home and live week to week. It is plain outright stupidity, not everyone can have the best of everything, sometimes you have to draw the line. With how much personal debt people have now it may just shock people back to reality. Times never will be always good, you need to allow for the bad, which obviously a lot of the population hasn't.

I also have personal reasons that benefit me, after all, the only thing i care most about is what is best for my family.

As for the banks, who will people turn to? Private lenders? They get their money fromt he banks, so ultimately they have to charge the same.

I agree that lots of people live week to week and it is a really bad way to be.

But anybody who says that they want to see interest rates go even higher is totally full of **** imo. I could absorb quite a few more interest hikes as well before I started getting really worried. But hell, I'd rather the money in my pocket not the bank's.

And I call bull**** on the example you gave as well. No bank is going to give someone with an income of 60k a $400,000 mortgage. Sure this "person you know" might have a 400k property but clearly they're not mortgaged to the hilt or they have other sources of income as well.

[AttaBoy]

Yes, he is good with financial side of things but he is also a risk taker. That guy is full of surprises!!
He is not really interested in cars though but he soon considering getting a decent second hand car to replace the corolla this year.

[AttaBoy]

I agree that lots of people live week to week and it is a really bad way to be.

But anybody who says that they want to see interest rates go even higher is totally full of **** imo. I could absorb quite a few more interest hikes as well before I started getting really worried. But hell, I'd rather the money in my pocket not the bank's.

And I call bull**** on the example you gave as well. No bank is going to give someone with an income of 60k a $400,000 mortgage. Sure this "person you know" might have a 400k property but clearly they're not mortgaged to the hilt or they have other sources of income as well.

Maybe depends on how much money have been saved before getting a loan? Its possible I think.

[MaN|aC]

oh well, interest rates doesnt really bother me. I've only got 10 grand fixed loan and a house with the mortage paid off.

All this and im 21 years old

[Bravotwozero]

Maybe depends on how much money have been saved before getting a loan? Its possible I think.

In case you're not aware, but weekly repayments on a $400,000 mortgage would be approximately $720 a week over 30 years. a 25 year mortgage would bump that up to about $750 a week. Someone on 60k would bring home about $900 after tax. Not gonna happen!

[minux]

I agree that lots of people live week to week and it is a really bad way to be.

But anybody who says that they want to see interest rates go even higher is totally full of **** imo. I could absorb quite a few more interest hikes as well before I started getting really worried. But hell, I'd rather the money in my pocket not the bank's.

And I call bull**** on the example you gave as well. No bank is going to give someone with an income of 60k a $400,000 mortgage. Sure this "person you know" might have a 400k property but clearly they're not mortgaged to the hilt or they have other sources of income as well.

I know quite a few people who want interest rates driven up, it will kill demand and ultimately bring property prices down(maybe not much but enought o make a few key investments). Not much different to what happened in the 80's and early 90's. Do you really think property would sustain such high value if there is no demand?

As for calling bull**** on the example i gave, say what you will, i am speaking from fact on what this person has. He is paying around $3200(bumped up) a month on his mortgage. 60k base salary around 9k travel allowance. I guess i am just imagining this persons wages and the fact his property is 3 doors down from me. Just for you, when i visit there tomorrow i will make sure i am not confusing his house with a tent.

[minux]

In case you're not aware, but weekly repayments on a $400,000 mortgage would be approximately $720 a week over 30 years. a 25 year mortgage would bump that up to about $750 a week. Someone on 60k would bring home about $900 after tax. Not gonna happen!

I see your presuming that a 400k home means that's how much you mortgage...Why we are presuming, lets presume said person had a large deposit, and has been making excess payments after getting a home loan. As i said, he lives week to week, never did i mention how much debt this person had.

[mattgreen]

my rates are going up on my loan for my car -.- mother ****ers im 17 its allready hard enough paying it off + doing my HSC at school!! hope the banks die.
also to add petrols going up to 1.50 where i live tomorrow i think and thats just ****ed!!
i filled my baby up at 1.40 a litre! hurt my pocket =[ especialy when you earn around 80-160 a week!

[Wombat]

We were only just lucky to buy our house back in 2000 when house prices were at the bottom of the slump...$70,000 for a three bedroom house in a popular area of town, which is now worth about $260,000+...rediculous, but does make for a nice little amount of home equity...

We might be dipping into the home equity again quite soon for a new car...sorry to say it, but it most likely won't be a Holden, but rather a brand new Ford Focus six speed turbo diesel...fuel economy like my motorbike, a decent amount of kilowatts, and torque like a V8...

With oil at $100 a barrel, and the only hope of it going down being "political stability coming to Pakistan" and some African country (yeah right...), it will most likely only go up. I would guess petrol will be up around $1.50 in our area within maybe a couple of weeks, and unless political stability comes miraculously to the places mentioned in the news, and oil keeps rising, it could climb up to $2 a liter by maybe the middle of the year.

Of course, this will have other effects on the economy...namely our beloved cars. We will be trading in the Lumina if we get another car, while it still has some value. I already know two guys who have had lower trade-in values made on thier immaculate cars purely because they are V8's (one a '97 Statesman, the other a 2000 SS for gods sake!), and this accelerate, and then move on to other large cars, such as plain old V6 Commodores as the petrol price rises.
In the second hand yards, if you have the dough, you will be able to pick up bargains...remember back in 2001 when the war in Afghanistan started, when oil shot up and petrol rose to a then-shocking $1.30 a liter? V8's dropped in price alarmingly on the second hand lots, and couldn;t be given away at some places. Look at the difference between older Land Rover Discovery's...you can pick up a very nice V8 one for prices down around the $6000 to maybe $9000 range, yet the exact same model with the excellent five cylinder turbo diesel starts at around $12,000 upwards.

High oil prices have a nasty way of affecting all sorts of unforseen things.

[mattgreen]

We were only just lucky to buy our house back in 2000 when house prices were at the bottom of the slump...$70,000 for a three bedroom house in a popular area of town, which is now worth about $260,000+...rediculous, but does make for a nice little amount of home equity...

We might be dipping into the home equity again quite soon for a new car...sorry to say it, but it most likely won't be a Holden, but rather a brand new Ford Focus six speed turbo diesel...fuel economy like my motorbike, a decent amount of kilowatts, and torque like a V8...

With oil at $100 a barrel, and the only hope of it going down being "political stability coming to Pakistan" and some African country (yeah right...), it will most likely only go up. I would guess petrol will be up around $1.50 in our area within maybe a couple of weeks, and unless political stability comes miraculously to the places mentioned in the news, and oil keeps rising, it could climb up to $2 a liter by maybe the middle of the year.

Of course, this will have other effects on the economy...namely our beloved cars. We will be trading in the Lumina if we get another car, while it still has some value. I already know two guys who have had lower trade-in values made on thier immaculate cars purely because they are V8's (one a '97 Statesman, the other a 2000 SS for gods sake!), and this accelerate, and then move on to other large cars, such as plain old V6 Commodores as the petrol price rises.
In the second hand yards, if you have the dough, you will be able to pick up bargains...remember back in 2001 when the war in Afghanistan started, when oil shot up and petrol rose to a then-shocking $1.30 a liter? V8's dropped in price alarmingly on the second hand lots, and couldn;t be given away at some places. Look at the difference between older Land Rover Discovery's...you can pick up a very nice V8 one for prices down around the $6000 to maybe $9000 range, yet the exact same model with the excellent five cylinder turbo diesel starts at around $12,000 upwards.

High oil prices have a nasty way of affecting all sorts of unforseen things.

2.00$ a litre!! **** THAT **** ill convery my beloved vs into a 4 cyl =D hummm rip my excell 1.4 litr engine out and put it in the vs? gutless!! but with the petrol prices =[ seems like itll be parked for a while! or i could just syphone the assholes in my years petrol haha payback + i gain out of it!!
#adds to notebook..

[Cane_It]

my rates are going up on my loan for my car -.- mother ****ers im 17 its allready hard enough paying it off + doing my HSC at school!! hope the banks die.
also to add petrols going up to 1.50 where i live tomorrow i think and thats just ****ed!!
i filled my baby up at 1.40 a litre! hurt my pocket =[ especialy when you earn around 80-160 a week!

sorry mate but at 17 years of age a car loan on a 80-160 a week is asking to get keestered, unless mum and dad bail you out, most people I knew when I was that age saved from working ****ty jobs and bought the best car they could afford outright.

but then again if you get by and get away with it without too much going wrong financially good luck to ya.

[Swordsy]

i think that this thread is getting off topic!!

The truth is that if you can't afford something, don't f#&%img get it!!!! house car or anything!!! Stick to a reasonable budget with a bit of leway, and you should be right. That is the sensible thing to do, or am i just an idoit..........

[Bravotwozero]

I see your presuming that a 400k home means that's how much you mortgage...Why we are presuming, lets presume said person had a large deposit, and has been making excess payments after getting a home loan. As i said, he lives week to week, never did i mention how much debt this person had.

Clearly they did have a large deposit because I've already stated that someone on that salary would never be able to borrow that much. But now I see this person suddenly now earns 70K? So he's got a 400k home with equity and you want to use this person(s) as an example in a negative way?

I still call bull****!

[1991_Vn2nV]

Well when will the aussie public learn? The interest rates continually go up because we are continually spending at record highs.

The australian public needs to learn to be more responsible with their money... Stop borrowing everything and spending the rest of your life paying off interest.

A house is a massive purchase.. Anyone that enters into such a purchase without weighing up all their options and being prepared for the worst, simply shouldn't be buying a house.