Interest rates increasing!

If there is one thing most members on here can agree on, it is that higher interest rates cause property prices to go down...

The bond market is like a tinder box with interest rates at 5000yr lows.

Donald Trump's tax policy good for shares but a disaster for interest rates


Will Trump's tax policy spark a market meltdown?

 

Next week RBA increasing rates....15% minimum.

 

15% of 1.5 is 22.5 basis points... yep close enough to a quarter point increase... a tad conservative forecast

 

15%.

 

Egyptian, sumerian or chinese interest rates?

 

Dogs and cats living together! Mass hysteria!

 

Do you know something about NK dropping nukes that we don't.

 

There is NO WAY the RBA will raise in the next 6 months at least.
The AUD is way too high, and with competitive pressures elsewhere, the RBA needs to keep itself in the game.

 

Sell your houses and invest in mattresses to store the cash under

 

Rather than type here, you can just go the market and make 25-35% on making that call with real money considering your confidence!

 

Are interest rate rises of 1-2% really that SCARY?

 

true...but id prefer the betting sites- bet on interest rate movements. Easier and quicker id say.

 

you can do that in a separate window on the same computer these days. Its 2017!

 

I don't agree with that. It depends.

In the late 80's, early 90's, before the "recession we had to have", interest rate increases did not cause property prices to go down.

The economic conditions at the time were high inflation, housing boom, stock market boom, low wage growth, high unemployment (I think, going from memory here). Interest rate increases did not stop the property market boom until rates hit 18% or so.

The economic conditions now are low inflation, housing boom, stock market stagnant, no wage growth, low unemployment. I would expect interest rate increases would affect property prices now because of the other economic conditions. However, why would the RBA increase rates? RBA generally increases rates to combat high inflation? Do we have high inflation?

 

You seem to think you know something. Did you happen to miss out on Sydney boom?

 

Why all the Sydney anti-Spruiking? I'm guessing either:

-missed out on buying in pre boom
-priced out and hoping for falls to allow a chance to buy
-jealous of gains/success of others
-perma bear on property
-general internet troll
-combination of above

Where are you putting your $ currently @DowntownBlock, would be keen to hear your investment strategy and goals?

 

If North Korea drop nukes, our response to the international crisis wont be to raise investment loans by .25%

 

I think ive heard about something like that

 

But it will be an uphill battle to get the tax policy over the line, may never happen

 

The above reasoning re RBA moves is based on domestic economic conditions. The above article indicates that an EXTERNAL shock such as US Tax reform, bond yield spike, direct mechanism links AUD interest rates with US interest rates, which is 60% of our ultimate borrowing comes from offshore lenders . . .

Therefore I agree on the domestic front, not many potential catalysts one can identify, however an external shock highlighted in this article presents more sensible outcome, and it could happen quickly depending on sequence of events OS.

Thought this point (article) useful... If you disagree just go the other way! Buy lots of long dated fixed bonds yielding 1-3% as rates will go down right?!