- superhoops wrote:Scamp wrote:attrill wrote:I have 2 loans fixed at 6.65% until 2009 when they will revert to the prevailing rate. In the last few years the rents have risen to a point where these properties will still be cash neutral. This is more a case of luck than astute financial planning.
Many are in your situation Attrill. Buyers know this, and are now waiting for people like you to tumble over, and foreclosures some on the market for 50% of today's price. It's what is happening in USA now, it will happen in Australia too. January 2009 will give more insight in the real trouble people are in. But if your bank devaluates your house by 20%, and you are negatively geared, then you will have to borrow at the variable interest rates of 10% to 11% ( if not higher by that time, there's already talks about raising interest again this month ).
Why don't you fix your interest now for 5 years ? At least you won't be one of the foreclosed ones.
Closing your eyes or putting your head in the sand won't let the problem go away : act now, fix your interest at 8.75% ( yes , you can still do this with your bank ) before you HAVE to do anything.
Interest at this moment will only go up , because Rudd wants to fight off inflation at all costs ( that's what he says anyway ) Just read the news, and make up your mind. I would not be surprised to see another 0.25 interest increase in June and one more in September.
Remember the 17% interest rates ?… they're coming back.
Glad I didn't take this persons advice about fixing interest rates at 8.75%.
LOL. That the same person who after our 1% rate cut was advising people on another forum to move their savings into a high yield saving account with banks in Iceland. That was the day before they went belly up.
I'm wondering if he followed his own advice and if so then what does he think of his government's effort (or lack of it) to recover his savings.
Quote:http://news.xinhuanet.com/english/2008-10/09/content_10171484.htm
Dutch gov't refuses to guarantee Dutch savings at Icelandic bankBRUSSELS, Oct. 9 (Xinhua) — The 120,000 Dutch savers who have deposits with the troubled Icelandic bank of Icesave are facing uncertainty as the Dutch government has expressed reluctance to guarantee their savings.
Dutch Finance Minister Wouter Bos said Wednesday that the government does not want to fully guarantee the savings of Dutch consumers with Icesave if Iceland fails to meet its obligations under the deposit guarantee scheme, Dutch daily De Volkskrant reported Thursday.
"If I advance the money there is no longer any pressure on Iceland's government," he was quoted as saying during a Dutch parliamentary debate on the nationalization of Fortis and ABN Amro.
Internet savings bank Icesave stopped to honor its accounts on Monday and its parent company Landsbanki, the second biggest bank in Iceland, was put under government protection on Tuesday. Dutch savers have a combined 1.7 billion euros (2.3 billion U.S. dollars) of deposits with the bank.
The British government said Wednesday it would compensate all British savers for their deposits with Icesave if the Icelandic government fails to do so. About 300,000 British customers have some 4 billion pounds (6.9 billion dollars) deposited in Icesave accounts.
Bos said Wednesday that the Dutch government is doing everything it can to get the Icelandic authorities to meet their obligations to Dutch people. "They signed a contract with us," Bos said, insisting that the Icelandic government must fulfill its responsibilities.
"We have not yet managed to get assurance from Iceland that it will take responsibility. But we are applying pressure through legal and diplomatic channels and through the supervisory bodies for the financial services sector," Bos told Dutch lawmakers.
He said taking over the Dutch savings in Icesave would be a serious option.
Icesave's Dutch office has been closed and the 30 staff members sent home, Dutch paper Financieele Dagblad reported Thursday. The Dutch central bank has been flooded with calls from worried savers and its website has been extremely busy.
The RBA knows what's going on
Kevin Rudd has no clue…………one term wonder. He may graduate from sock puppet to muppet in this turmoil. It's embarrassing watching him on TV.
1% reduction was to stop us plunging into recession.I like how key board heroes have all the answers to our problems. I know our top boys may not be the best but i trust that when they listen to all there advisers and take note of all the info WE DONT HAVE, they are able to come to a conclusion that is better for us than what the majority of us can come up with.
Every bit of information at the moment is getting torn apart on these forums and offered to those reading with a new spin. Its like reading one verse out of the bible and then creating a story from it that lasts hours( This happens with cults a lot. see the similarities) property is long term people.And for f@#k sake. Can some one please show me where there is a big group of people saying PROPERTY NEVER GOES DOWN IT ONLY GOES UP. I have never heard people say this exept for long term which i believe still holds true.
I believe the people saying this are sitting next to a unicorn and a few other mythical creatures that dont exist.devo76,
I think you are referring to real estate agents!I was a little suprised last night at the US market. I just hope the media do not push the fear. Fantastic time to make money though.
blogs wrote:Scamp wrote:The truth about the australian housing market :The risks are huge, and will soon become more than clear to a lot of households when their
lowest-ever 5-year-fixed mortgages will go up from 6% to 10% interest rates this september 2008.
This huge increase results in average monthly mortgage repayments increasing from 850$ to 2650$.In september 2008 : 1.000.000 households will be in severe trouble. And this is just the start.
Be prepared and be afraid , this crash will dwarf the 1929 crash.
Agree 100000% mate!!! This post is going into the 'I told you so' file to be brought out in a year or two. Funny how greed and ignorance can blind people to the real story. Your point about people coming out of fixed rate mortgages is what Ive been saying ofr ages-no body listens. Thats o.k, the less they listen the more it will crash and the better value I will be able to buy:)
Bump.
What has happened to these 'experts' – such as scamp and blogs. Where are they now?
LOL – seems to me they were completely wrong in their predictions regarding the property market.
….. Included the property and economic experts throughout the Australia and WORLD
superhoops wrote:blogs wrote:Scamp wrote:The truth about the australian housing market :The risks are huge, and will soon become more than clear to a lot of households when their
lowest-ever 5-year-fixed mortgages will go up from 6% to 10% interest rates this september 2008.
This huge increase results in average monthly mortgage repayments increasing from 850$ to 2650$.In september 2008 : 1.000.000 households will be in severe trouble. And this is just the start.
Be prepared and be afraid , this crash will dwarf the 1929 crash.
Agree 100000% mate!!! This post is going into the 'I told you so' file to be brought out in a year or two. Funny how greed and ignorance can blind people to the real story. Your point about people coming out of fixed rate mortgages is what Ive been saying ofr ages-no body listens. Thats o.k, the less they listen the more it will crash and the better value I will be able to buy:)
Bump.
What has happened to these 'experts' – such as scamp and blogs. Where are they now?
LOL – seems to me they were completely wrong in their predictions regarding the property market.
Isn't the mortage interest rate rising every quarter since Q4 2009??? The experts might not get it right at the exact timing (i.e. Sep 2008) due to goverment interventions during GPC. However, the interest rate needs to go up after the GFC due to the shortage of credits in global debt markets. If the mortgage rate becomes 10% in Sep 2010, the experts might turn up when their predictions come true! Let's hope the interest rate never ever reach 10%, otherwise, first-home-buyer mortgage defaults could mark the collapse of Australia property market, thank to government' first home buyer incentives…
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