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Interest Rates Up Today

Discussion in 'General Investing Discussion' started by perrycomo, 6th Oct, 2009.

  1. perrycomo

    perrycomo Member

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    Crap so i suppose i have to call the bank now and arrange moving to a fixed loan for my IP
    Can anybody talk me out of it or maybe you moved to fixed months ago
     
  2. TryHard

    TryHard Well-Known Member

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    Personally I think the horse has bolted if you want fixed rates ... what variable rate are you paying, versus what fixed rate you can secure. If it is say 20 basis points difference, how likely do you think it is there will be 8-10 increases before you even get square ... ? Might just be time to consolidate and ride it out ?
     
  3. Billv

    Billv Getting there

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    I agree, fixed rates are not attractive. I'd stay variable
     
  4. Chris C

    Chris C Well-Known Member

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    I wouldn't in good conscious try to talk you into fixing your loan, but I'd be comfortable talking you into selling...

    ;):p:rolleyes:
     
  5. JudgeDreadz

    JudgeDreadz Well-Known Member

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    haha...good one chris =)
     
  6. jrc

    jrc Active Member

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    My guess would be horse has bolted for fixed interest rates.

    St George at end of July on 3 year fixed interest was 6.49%, today after an increase a week or so ago they are 7.24% - so if your variable is say 5.5% how long will you need for the payback and how high do you think variable will go.

    I managed to fix at 6.35% a couple of months ago for about half my borrowings.
     
  7. crc_error

    crc_error The Rule of 72

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    the horse was never at the starting gate.. there never was a good time to fix rates, they never came down to attractive rates for a worth while period of fixing time.

    Probably the only rate fix worth considering was the westpac 4.99 for 3 years, but 3 years really isn't long enough to worth worrying about.
     
  8. Chris C

    Chris C Well-Known Member

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    That's because the banks aren't stupid they knew that recent low rates are not a signal of the world entering a new period of low rates (actually if anything we've probably just left that period) these low interest rates are just emergency rates that are a prelude to higher longer term interest rates.

    The point is, now is not the time to fix rates (it never was); it's time to reduce debt.
     
  9. perrycomo

    perrycomo Member

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    Save your breath ,I won't be selling now ,my ip has just been valued 45 k more than I paid for it in 2005 ,most of the growth within the last 12 months

    Bought a townhouse near Liverpool western Sydney with a 100 % loan for 180 k and now I have over 30 % equity

    That's like winning lotto for a bloke who moved to Sydney from country nsw 10 years ago with the arse out of my pants

    Go Sydney real estate you good thing
     
  10. Billv

    Billv Getting there

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    you must have got it very cheap because prices now are not higher than 2005, in fact they are still a bit lower
     
  11. Billv

    Billv Getting there

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    and here is proof
     

    Attached Files:

  12. Chris C

    Chris C Well-Known Member

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    I completely understand, and I know I definitely come from a different angle when it comes to our future economic prosperity and its effects on Australian housing prices which is very contrarian, but what can I say - I believe what I believe and only the future knows the truth.


    Just remember... Pigs get fat; hogs get slaughtered.
     
  13. JudgeDreadz

    JudgeDreadz Well-Known Member

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    thats awesome perry. i love stories like this.
     
  14. perrycomo

    perrycomo Member

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    My ip is a 3 bedroom townhouse with a nice backyard which is a bit different to a dime a dozen apartment in Liverpool

    Im not sure if townhouses are included in unit stats but even if they are i can only tell you the price i bought it for and the value the banks drive buy gave this week,if you dont believe it i cant help that
     
  15. Billv

    Billv Getting there

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    perrycomo
    You must have got it cheap and considering the current demand in the area
    there should be more growth for Liverpool this year so your figures will look even better soon
     
  16. perrycomo

    perrycomo Member

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  17. Billv

    Billv Getting there

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    Which beach is that?

    I would too but within reason.
    I was looking at units for a couple of weeks now but didn't buy any because prices have already moved.

    Also, due to increased demand & limited stock at the lower end,
    vendors and agents are not very negotiable
    so it's getting to the stage where for similar money you could buy closer to the city.
     
  18. Billv

    Billv Getting there

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