More good news ...

Thanks Euro
Been watching this and other stuff closely, this will change the playing field for investors.

Interesting times.

 

Doesn't change much

 

Phew! Locked in JUST in time. Thanks Euro.

 

Westpac have also bumped 8 basis points today...

 

No it doesnt. You're right. It's modest. But it does tell us we appear to have reached the bottom of the rate cycle... and Basel IV hasnt been priced in yet.

 

Oh No. Those bloody investors will now be claiming larger negative benefits.

The National Budget will be in even more trouble .

 

Getting pretty concerned. There goes the aggressive expansion but we did have a pretty good run and it wasn't mean to last forever.

 

Interestingly the NAB hasn't changed their fixed rates like almost everyone else. Stay tuned...

 

Bad news but lets not over react, it affects sentiment, thats all.
0.15% of 1,000,000 borrowings is $1500 per year which is less than $30 per week which is tax deductible.

 

I view it totally differently has nothing to do with how many actual points it has increased, I know this will change market sentiment, because its all to do with the psyche, savvy investors understand that the tables are turning, am I the only one that sees this? surprising

 

this will impact negatively on the market, which in turn means people don't buy due to fear, more stock comes to market so we then move onto over supply, wont happen overnight but it will impact on property prices eventually which means your net worth/equity will fall, no biggie really.......ouch

Add this with the fact that we will see the economy after 25 years falling back wont paint a pretty picture. Media yet to grab this one, time to lock in rates, or reduce debt, or access equity whatever it takes to reduce risk

 

Here's one more for good measure... Note the SMSF rates.

 

Its time to be cautious, those ignore the signs are naive at best. Watch this space in 6 months time.........

 

thanks, this has made my day....NOT

 

You are right, but I am trying to be diplomatic this afternoon MTR. Lots of ultra sensitive souls to tread carefully around.

Just delivering the facts... make of them what you will. In the space on 1 week , fixed rates and now variable rates have started to move upwards.

 

very good approach for a Monday, tell me how you feel by Friday...LOL

I would rather share my experience, 6 cycles to date but whose counting

MTR

 

And keep them coming please, it's good to be aware of these subtle changes.

My comment was is relation to the idea that small incremental movements would stop an investor's plans in relation to expanding their balance sheet. It's far from the end of the world. Market sentiment will be affected but if investors cannot withstand a couple of percent IR movements then they either are over committed or haven't been investing for very long. Or both.

 

Yeah the effects will be modest, for sure at this stage..... But the thing to watch for is the additional 30-40 bpts increase to banks funding costs off the back of BASEL IV implementation in 2017 and 18... and we all know by now that it will almost all go to I/O rather than P&I - so even without any RBA movement on the cash rate, I expect rates will effectively move upwards by an additional @ 50bpts for investors .... probably late in 2017

 

From a fiscal point of view, a few of theses modest rate rises, even up to a percent really shouldn't stress a seasoned investor. After all the rates right now are some of the lowest we have ever seen.
What concerns me the most, and what has been previously mentioned is market sediment and the psyche of buyers/investors. A few rates 'rises', especially in quick succession have the potential to completely change the attitudes of buyers and really flatten a market.