@DeanCollins – I would look for a 2 or 3 year fixed rate as 5 years is a long time and a lot can happen that could trigger a sale of a property therefore incurring break-costs that could be substantial.

I see the short to medium landscape for interest rates continue to trend downwards, perhaps all the way to a zero cash rate and if correct fixed…[Read more]

@DeanCollins – I would look for a 2 or 3 year fixed rate as 5 years is a long time and a lot can happen that could trigger a sale of a property therefore incurring break-costs that could be substantial.

I see the short to medium landscape for interest rates continue to trend downwards, perhaps all the way to a zero cash rate and if correct fixed…[Read more]

@deancollins I’d say the recent jobs report is mostly smoke and mirrors – many of those new jobs are low-paying and part-time in hospitality and retail. Don’t see another Fed rate rise coming myself.

@deancollins Nice, spot on Dean.
So I guess it is for sure that RBA going to cut the interest rate again next year or even next week :-)

interesting day ahead for us investor here where the banks just increased the IR last week due to APRA ruling.

@deancollins, which means the interest rate must be lifted up to attract foreign investor buying Govt. Bond because cutting interest rate means the country is not performing very well.

@deancollins, as I’ve written here, APRA exists to regulate our banks’ exposure to risk in order to protect depositors, so all they need to do is say that’s what they’re doing even if what they are really doing is carrying out monetary policy for the government. None of this would be necessary if the RBA wasn’t artificially suppressing interest…[Read more]

Interesting indeed @deancollins. The reason is because Glenn Stevens left the impression that there would be no more rate reductions by removing an easing bias from his statement Tuesday. I reckon he was showing caution to get a desired currency response without fueling more property speculation long term. But stay tuned for tomorrow’s…[Read more]

@DeanCollins – Sorry, but would you please elaborate how the government steals money by way of inflation?

Inflation is caused by all sorts of things / people increasing their incomes, fluctuation of AUD exchange rates, supply and demand impacting price of goods & services, etc, etc – all ups and downs are summed up and are usually causing…[Read more]

That’s definitely a concern @deancollins. Rates will eventually revert to their historical mean. Once we hit the bottom, whenever that is, we will have attracted more and more speculators into the market which will make the inevitable pull back all the more painful. This is why I think the Austrian economists were onto something. Like @charliex…[Read more]