Interest Rates to 7.25% by February?

[Surly]

Just for the record:

I am 32, have a $200,000 mortgage on my own 3 bedroom house, and an investment property that I own outright. I have been doing build and sells since 2001 to 'get ahead'

I am speaking on behalf of my friends, work mates and others in SOCIETY who are trapped in this cycle.

I just don't like people who engage in finger pointing at the misfortune of others' mortgage situations when they can barely help it.

Although I am savvy with my money, I, unlike Howard and Rudd, still cling to the idea that we live in a SOCIETY as CITIZENS, rather than ECONOMIC subjects divided into haves and have-nots.

I am good with money. But my parents are NOT, and what if my daughter does not have great skills in this area? Is she a 'loser' who has to put up high mortgages and gets spoken down to whenever rates go up as if she is being called into the principals office?

We need to think about what kind of a society we want to live in very carefully, as I think we are at the cross roads. Not really where most investors or share traders heads are at... but I'm entitled to my opinion.

Cheers
Brad

Sounds like you are doing well Brad. Out of interest how many of your family and friends have you farmed into the buy and sells to help you both out?

cheers
Surly

 

[BradK]

Surly,

I did the first few by myself, but the current project is actually with a brother in law to help him and his new wife raise a deposit for their new home.

My two brother in laws are also throwing in together now, and we are all working out quickly about synergy.

I guess the future will be families helping each other out out of necessity rather than just a good idea.

Welcome to John Howard's Australia

Brad

 

[son of baglimit]

i wonder, i just wonder, how many of these poor folk with mortgages about to explode their dreams ever, ever considered that interest rates DO GO UP.....its not always 5 point something, 6 point something or 7 point something...........when i bought my first house, rates were coming down from their 17% highs of the late 80s, but were threatening to charge up again. so what did i do - i budgeted for 16% rates before i jumped into the home owning game. thankfully, rates soon dropped again, and kept dropping to those 5 point something rates. now did i use this time to enjoy the extra freedom that extra spare cash brings - NO - i pumped the mortgage harder, cos it was never gonna stay that way - surely - but hey it nearly did.......till the last 2 years.
well mortgage is paid now, but i wonder how many of these poor folk EVER considered what rates would be 2,3,4,5,10 years AFTER they began the jump into home ownership....somehow many did not id say. they grabbed onto the dream, borrowed to the max (cos the banks etc let them) using the home buyers grant as a deposit, fully furnished the place in "only the best for me'' brands so they could spruik to friends etc, and then as rates remained low, thought "gee i CAN afford that investment property costing whatever hundred thousand dollars, cos mr bank said i could.......again no thought to ''what if rates go higher?"............and now we have the dilemma.....poor mr and/or ms average, on 1 or 2 incomes, trying to pay just the interest on 2 properties, a margin loan for their share portfolio full of ''great tips"..... and crying foul, cos its not their fault, its howards, or rudds, or glenn stevens, or the merkans, or china, or whoever but THEM.

who do i blame...........a current affair/today tonight, for one night they show some twit who has borrowed against the increased value of their rental properties that now number 15 and keep buying more and more, the next they show some poor down & out getting evicted cos they cant pay the bills, who is more than happy to blame everyone else but themselves.

the great australian dream isnt the problem, its the ''i want it too'' attitude of so many out there.

rant over

 

[BradK]

Fair rant S of B.

It is an extremely difficult issue in my opinion, and not one where you can blame or tar everyone with the same brush.

The banks have a lot to answer for, as does Howard with his promise at the last election to the gullible who continue to think there is any DIRECT relatoinship between the government of the day and interest rates.

Interest rate rises will cause a lot of pain out there, and contribute to the general drift between a two-tiered society.

Welcome to John Howard's Australia

Brad

 

[robots]

hello,

john howard's australia is awesome,

tell me one thing wrong about it?

thankyou

robots

 

[BradK]

Oh Robots,

I dont know... ask Dr. Haneef and one of the 90% fall in foreign doctors who refuse to come here now, which hurts our hospitals even further.

Oh wait - that is probably Labor state governments...

Australia is GREAT if you are white!

Cheers
Brad

 

[Flying Fish]

Fair rant S of B.

It is an extremely difficult issue in my opinion, and not one where you can blame or tar everyone with the same brush.

The banks have a lot to answer for, as does Howard with his promise at the last election to the gullible who continue to think there is any DIRECT relatoinship between the government of the day and interest rates.

Interest rate rises will cause a lot of pain out there, and contribute to the general drift between a two-tiered society.

Welcome to John Howard's Australia

Brad

Oh come off it. o you really belive any governement of this country can control the world economy. He just got lucky at the right time. doesn't matter what jokers are in power, they are all muppets

 

[BradK]

Flying fish,

On the contrary, I do NOT believe that Howard can control the world economy nor any other leader - especially not Bob Brown :

Which is my point exactly. You are GULLIBLE if you believe Howard's claim to keep interest rates lower at the 2004 election. And gullible the electorate was.

Howard has been given a GIFT in the resources boom - but the architect of the Australian economy was Keating.

You can start abusing me now. But, read economic history and weep.

Cheers
Brad

 

[Flying Fish]

Flying fish,

On the contrary, I do NOT believe that Howard can control the world economy nor any other leader - especially not Bob Brown :

Which is my point exactly. You are GULLIBLE if you believe Howard's claim to keep interest rates lower at the 2004 election. And gullible the electorate was.

Howard has been given a GIFT in the resources boom - but the architect of the Australian economy was Keating.

You can start abusing me now. But, read economic history and weep.

Cheers
Brad

lol you surely gest. so he is now to blame for are upcoming woes and people will adore him.

bring on 17% + it'll sort the whimps out from the boozers

 

[damorgs]

Oh Robots,

I dont know... ask Dr. Haneef and one of the 90% fall in foreign doctors who refuse to come here now, which hurts our hospitals even further.

Oh wait - that is probably Labor state governments...

Australia is GREAT if you are white!

Cheers
Brad

Am i mistaken, or wasn't Dr.Haneef kicked out of our country for planning terrorist acts? Then didn't he re-apply for a VISA and got rejected? He WANTS to come back into the country.The way you are making it out it's like he had a choice?

I think the whole D&G about the liberal government is a bit old. I think both parties talk crap and their promises are empty. We have all established that you are a labour supporter, let everyone else make up their mind.

Darren.

 

[BradK]

Yes Darren,

You are mistaken.

a) I am not a Labor supporter - but I am not a Green's or Howard supporter either.

b) I think the most truthful comment out of this election has come from Peter Costello - "If Rudd or Howard were any closer, they'd have to ask Jeanette for permission"

I am a citizen who is sick of politicians in our country for the reasons outlined in the next paragraph.

Dr. Haneef. Putting aside political partisanship for a moment - was he? wasn't he? - three words - RULE OF LAW. Let's put that back into the centre of civic life - just ask Pakistani judges right now.

Brad

 

[nioka]

hello,

john howard's australia is awesome,

tell me one thing wrong about it?

thankyou

robots

I'd like to answer your request but the list is too long for me now and I would not like to sort just one out except to say it is NOT John Howard's Australia. He only thinks it is.

 

[hangseng]

Interest need to go to 20% before it affect me because I don't leverage that much.

High debt level or leverage can bring higher return
but it can probably bankrupt you as well so I take it nice and slow.

Exactly

I also plan well ahead, I have 3 mortgages and all on fixed interest so once again this has no affect on me at all. I do feel for those without the understanding that get caught in the cycle though.

I accept my rental returns will increase and part of why I invest, but landlords need to be mindful of excessive increases. People will begin to hurt, don't add to the pain with greed.

 

[Shane Baker]

Never forget ...The Right Honourable John Howard (federal treasurer in 1982 under Fraser when interest rates peaked at 22%) ..I hear tell he dances a mean Polka himself.. :beat:
Cheers
..........Kauri

I think you'll find they were short term money market rates. From memory the long term (read home loan) rates were closer to 15% at the time.

 

[glenn_r]

So you think me too and his Union buddies will keep interest rates down, what is their policy on reducing rates, adding to the costs of employing people??

IMHO rate rises are a normal organic part of the economic cycle and it appears the "I want it now and pay later" generation will be in for a financial lesson.

When I bought my first house in 1983, I had to come up with at least a 20% deposit and have a proven savings history with the lender also before they would even talk to me about a loan, nowadays they lend 110% to anyone who walks in off the street.

 

[robots]

I'd like to answer your request but the list is too long for me now and I would not like to sort just one out except to say it is NOT John Howard's Australia. He only thinks it is.

hello,

yes understand,

please tell what is wrong with AUS?

more than likely it will be embarrassing when you do write the list and observe how trivial those items are

thankyou
robots

 

[chops_a_must]

hello,

yes understand,

please tell what is wrong with AUS?

more than likely it will be embarrassing when you do write the list and observe how trivial those items are

thankyou
robots

Yeah, agreeing to illegally invade a sovereign country is incredibly trivial.

 

[Smurf1976]

Just for the record:

I am 32, have a $200,000 mortgage on my own 3 bedroom house, and an investment property that I own outright. I have been doing build and sells since 2001 to 'get ahead'

I am speaking on behalf of my friends, work mates and others in SOCIETY who are trapped in this cycle.

I just don't like people who engage in finger pointing at the misfortune of others' mortgage situations when they can barely help it.

Although I am savvy with my money, I, unlike Howard and Rudd, still cling to the idea that we live in a SOCIETY as CITIZENS, rather than ECONOMIC subjects divided into haves and have-nots.

I am good with money. But my parents are NOT, and what if my daughter does not have great skills in this area? Is she a 'loser' who has to put up high mortgages and gets spoken down to whenever rates go up as if she is being called into the principals office?

We need to think about what kind of a society we want to live in very carefully, as I think we are at the cross roads. Not really where most investors or share traders heads are at... but I'm entitled to my opinion.

Cheers
Brad

Totally agreed.

But do you acknowledge the practical reality that it is the boom in house prices that has caused the situation?

The sooner we go back to thinking of a house as a place to live and stop worrying about its value the better off we'll be as a society. Bread, milk or meat go up and most consider that to be a bad thing. It's no different when house prices go up - it's not good in the long term even though it creates a spectactular boom in the short term.

Tomorrow has now arrived and it's time to pay (with increasing amounts of interest) for the boom. Some profited but ordinary families just wanting a roof over their heads aren't among them.

Sadly, I think inflation (wage inflation) will be the only way out of this mess. Just remember to blame not the unions but loose credit when it comes. That's what fuelled this mess - too much easy credit. The unions etc would be quite justified in wanting wages to catch up and odds are they'll push for that no matter who wins the election. And if unemployment stays low they'll get it.

My best guess is we're about to see some serious inflation worldwide over the next decade no matter who is in government either here or overseas.

 

[Smurf1976]

When I bought my first house in 1983, I had to come up with at least a 20% deposit and have a proven savings history with the lender also before they would even talk to me about a loan, nowadays they lend 110% to anyone who walks in off the street.

That is precisely what we need to go back to. There were sound reasons why banks didn't lend 110, 120 etc % and didn't lend to those with no savings record.

 

[nioka]

hello,

yes understand,

please tell what is wrong with AUS?

more than likely it will be embarrassing when you do write the list and observe how trivial those items are

thankyou
robots

List;
1. Having recently spent a couple on months in hospital following a boat explosion I can assure you our hospitals leave a lot to be desired. Following the accident I went to the local hospital where the doctor decided he could not do much for me. I was transferred to a base hospital where I got the same result. I was then transferred by helicopter to Brisbane where I waited in cas for a couple of hours before being seen by a doctor. That was 12 hrs after the accident.
I was not too bad off compared to others I saw during my stay in the burns ward. At on stage one of the surgeons told me that my stay may have been 2 weeks less had they had some equipment they have been trying to get funds for. In the end I was discharged early and in a hurry because someone else needed the bed.
I have friends who have waited for 2 years for a hip replacement. I know a pensioner who has a mouth full of rotten teeth and is told to wait a year or so for any treatment apart from emergency extractions.
I could go on and on these are examples. I look after myself with top level health insurance. Those that can't afford it are in deep !!!. Even with top level insurance if the doctors and beds aren't there you are in just as much trouble.
2. Australia's debt. All the government has done to get rid of Government debt is to either sell valuable assets (our assets-we paid for) or transfer the debt to the private sector. Each month we have to sell another aussie icon to help finance it.
3. Howard took us to an illegal war on a LIE. A war that can't be won.
4. Howard introduced gun laws that disarmed the country but still left the crims have guns.
5. Howard has the average working man working hard to compete with third world wages and is trying to drive them even harder.
6. Howard lied about the GST. Remember he said it was dead in the water and would not be revisited.
7. Howard lied about the boat people.
8. National infrastructure. Falling behind. A disgrace.
9. Education. Falling behind. Also a disgrace.
10.etc etc. ( They are there if you really need more convincing.)
Are any of these trivial?