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Let's hurt those evil investors

Discussion in 'Property Finance' started by Bayview, 25th Jul, 2015.

  1. Bayview

    Bayview Well-Known Member

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    So, just went to log on to my online banking, and there was a slogan at the top of the screen saying;

    "Our standard variable rate for investor home loans will increase by 0.27% on August 10, 2015."

    Which Bank, you ask?
     
  2. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    great. reality. check. for. investors.

    you. have. been. warned.
     
  3. Darren A

    Darren A Well-Known Member

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    Are you one of those MacroBusiness goons?
     
  4. Coota9

    Coota9 Well-Known Member Premium Member

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    That's easy...all of them!!!:mad:
     
  5. Bayview

    Bayview Well-Known Member

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    Indeed.

    Your warning is; PLEASE DO NOT MAKE ANY EFFORT TO BETTER YOUR LIFE. RETIRE ON A PENSION AND BE A BURDEN ON SOCIETY'S PURSE STRINGS, AND LET THOSE FHB'S BUY A HOUSE.
     
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  6. DanW

    DanW Well-Known Member

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    Why isn't there a "dislike" button.. Damn 2015, the old days were better where I could rate things on the internet with 1 star
     
  7. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    It's not rocket science. The RBA has been warning us since they first cut rates early this year.

    http://www.rba.gov.au/media-releases/2015/mr-15-01.html

    "The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market." - Statement by Glenn Stevens: Monetary Policy Decision 03.02.15

    They have warned us, but many have chosen to stick their proverbial head in the proverbial sand.

    They would have wanted to cut rates further, if only the housing dragon wasn't crazy.

    Perhaps in the next RBA rate cut it will be a case of the banks passing it only to owner-occupier loans, and the media won't care, in fact the tabloids will love it.
     
  8. Darren A

    Darren A Well-Known Member

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    And then owner occupiers might take up the baton and increase real estate prices.
     
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  9. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    I doubt it very much. And if it will help FHBs, Stevens will be happy because he sees it as a social problem.

    "A week after cutting interest rates to historic lows, Reserve Bank governor Glenn Stevens faced a House of Representatives committee on Friday and told them affordable housing has become a 'major' social issue in Australia."

    http://www.smh.com.au/business/rba-...rty-market-20150213-13eakh.html#ixzz3grzXZe4O
     
  10. DanW

    DanW Well-Known Member

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    I'm getting scared now

    *calling CBA for 15 year fixed rate*
     
  11. beachgurl

    beachgurl Well-Known Member

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    It still doesn't make sense to me. The majority of people affected are multiple property investors. In my position, I'm positive geared enough that my rental income covers my PPR mortgage. Our portfolio is at around 70pc LVR and we havent borrowed over 80pc for years now.

    Based on today's figures, the entirety of my husband's income is disposable income. Yet we've now hit our serviceability limit with the majority of lenders and tightening further.

    Why are we more of a risk than a double income no kids first home buyer borrowing to their eyeballs and their repayments being the husband's full take home pay, or a first time investor purchasing a property at 90pc LVR in the peak of the Sydney market and having a rental yield of 3pc?
     
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  12. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    8%
     
  13. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    What kind of crazy person would fix for 15 years..

    ..oh, wait.

    ...

    @Bayview, don't worry. We're looking good for another cut or two which will basically bring us back to square one.
     
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  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    well no.

    generalisations such as this are part of the challenge.

    less than 30 to 40 % of the population doesnt a majority make.

    Targetted and specific action to interfere with global economic trends and improve financial system stability may help, but broad bulldozer policy and guidance provides for many unintended and unexpected outcomes for those at the margins. Improved housing affordability is not one of them..................

    ta
    rolf



    Ta
    rolf
     
  15. Darren A

    Darren A Well-Known Member

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    @Till Kingdom Come - are you a struggling FHB or a uni student with way too much time on your hands?

    The 8% you are referring to sounds like that's what you hope or expect interest rates to go to so us property investors suffer. I don't mind because I'll just move the money I have made out of property investment in these last few years to make use of the higher interest rates.
     
  16. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    Maybe increasing housing supply would be a better approach. But that could be slightly vested interest :D
     
  17. jaybean

    jaybean Well-Known Member

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    This.
     
  18. Marg4000

    Marg4000 Well-Known Member

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    When we started investing in the 1980s investment loans were always at a higher rate to home loans. And not a measly 27 points - usually at least 1% or 2% higher. That is, if you could actually talk the bank into lending you the money as they had quotas for each type of lending.
    Marg.
     
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  19. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    What makes you think the banks will pass on rate cuts to IPs? They can choose to pass it on to OwnOccs only.
     
  20. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    Well No. I am a property owner myself. ;)

    Ask CBA. The 8% is what they have for IP loans 15y fixed.