RBA Interest Rises- How is it affecting you?

[minux]

had rudd started up a commision on this yet

Nah that will come out in the second book "The next 100 days"

 

[EvoVIIIJDM]

While these rates certainly do not help us, they certainly do not push us over the edge. Having worked on site and holding a very reasonable job in mechanical engineering, housing is not out of our grasp even on a single salary which we will be for 6-12months.

I have heard alot of people reaching in for their super claiming financial hardship to keep their house, my other half is a financial planner and deals with this day to day.
People just do not research into what they borrow, or their expenditure. Its heartbraking to see this.

 

[R Photon]

My point exactly...

Your obviously not a low or middle income earner.

Figures show that people in between these income brackets spend 30% of their gross income on housing.

While rate rises benefit a minority they have a detrimental impact on a majority.

 

[Lumps of cheese]

I'm locked in for 3 years on my home loan but still without that going ok.My wife is looking to get back to work regardless of interest rates so that'll make life easier too.

 

[Rufus®]

Really at 7.25% it shouldn't be affecting anyone but it goes to show how many people have borrowed on a borderline mortgage. You cannot expect to borrow 400k and hope that interest rates will stay low forever. It just will not happen.

Why do you assume that the reason the banks are foreclosing on properties is a result of people over extending themselves?

Peoples situations change over time, jobs change, pays change, families grow, families needs grow with it.

For me personally my biggest expense, apart from my mortgage, is childcare coming in at $730+/fortnight for 2 children (and thats only for 4 days per week).

So while some people do over extend themselves, you cannot account for every change that is going to affect your living style throughout your entire life.

For those that have over extended themselves its to bad that they have lost their homes, but they should have done the math better. For those that have lost their homes due to factors that have changed their lifestyles then that is a real shame.

For me, If I had to pick between kids or a mortgage, well I wouldn't have to pick, it'd be kids hands down!

 

[minux]

Your obviously not a low or middle income earner.

Figures show that people in between these income brackets spend 30% of their gross income on housing.

While rate rises benefit a minority they have a detrimental impact on a majority.

30% of income isn't much on a house. Problem is, Show me a person on 50k a year who owns say a 200k house. It just doesn't happen.

Why do you assume that the reason the banks are foreclosing on properties is a result of people over extending themselves?

Peoples situations change over time, jobs change, pays change, families grow, families needs grow with it.

For me personally my biggest expense, apart from my mortgage, is childcare coming in at $730+/fortnight for 2 children (and thats only for 4 days per week).

So while some people do over extend themselves, you cannot account for every change that is going to affect your living style throughout your entire life.

For those that have over extended themselves its to bad that they have lost their homes, but they should have done the math better. For those that have lost their homes due to factors that have changed their lifestyles then that is a real shame.

For me, If I had to pick between kids or a mortgage, well I wouldn't have to pick, it'd be kids hands down!

Umm the reason banks are foreclosing is because people over extended themselves, just look at the figures both banks and governments are releasing. People should not be allowed a mortgage if they have not raised at least a 15% deposit. It is up to the government to try and find a way to enforce this. A deposit is the biggest money saving factor in a mortgage. Although it doesn't help much with so many people taking up their line of credit(another stupid thing to enter into). I wouldn't think raising a deposit would be that hard, considering how many kids leech off their parents these days.

As for kids or mortgage, I'll take mortgage, kids would be detrimental to both my own and my partners careers, it would also put us in a position in where we cannot provide for Children the way we want to. I must think of our future and our children's future first.

I could go on and on and on but I won't.

 

[Torquen]

taking up their line of credit(another stupid thing to enter into).

I know the genral gist of "a line of credit" and i dont see how it is risky/bad??
Is there some catches?
explain please

 

[minux]

I know the genral gist of "a line of credit" and i dont see how it is risky/bad??
Is there some catches?
explain please

Too tired to explain, off to bed, but here, just a quick link

http://www.asic.gov.au/fido/fido.nsf/byheadline/Line+of+credit+mortgages?openDocument

As you can see, in many cases people go "overboard". It is just another trap for those not as well off to pay banks more money and end up in a never ending loop.

 

[Scooter79]

We bought at the beginning of last December. As soon as we could we fixed our rate for three years. Blind freddy could have seen these interest rate hikes coming. So far we've avoided three rate rises.

If you want to get your foot in the door of the housing market be prepared to move. My wife and I were both in Sydney renting near Kellyville owned by friends. We knew we wanted to buy but we were looking at close to $500K for a suburb that wasn't littered with crime. I found a job down the south coast and my wife works from home so we moved at the start of '07. We rented a 4 bedder place overlooking the ocean and headlands for just $300p/w. Then end of last year we found our current place for just $380K. Four bedder, office, double garage, outdoor room in a decent area. Point is you've got to weigh up what sacrifices you're willing to make to get into the housing market. For us the move wasn't a sacrifice because the lifestyle is so much better than what we had in Sydney. I guess the other thing is to free yourself from any debts and save as much as possible. The greater the deposit the less the interest rate will affect you.

...and you should visit someone like Mortgage Choice and find out exactly what you can and can't get so you know where you stand.

 

[Not_An_Abba_Fan]

30% of income isn't much on a house. Problem is, Show me a person on 50k a year who owns say a 200k house. It just doesn't happen.

I live in a 400k house, one other property I have is about 200k, and the block I just bought is worth about 160k, all this on 60k a year.