Rates set to rise eight times

Rates may rise eight times in two years

Bad news...

 

Thanks for the heart attack, John. Seriously though I wouldn't be surprised, I guess, and could afford it. I suppose a lot will depend on economic performance.

 

Duplicate thread

 

Preparing for the worst

 

And in the same article...they may not. I guess that covers all bases

 

Mine went down by 0.05% today - the end is nigh!

 

These rates look like they are rising faster than sea levels.

Interest rate hedges or floaties?

What to do?

 

You must be P&I

 

Deleverage, manage risk

 

If one has one PPOR and 1 IP, it's not a concern unless that IP bleeds cashflow like crazy. It seems to be that deleveraging is more relevant for those with more IPs and more debt than the average, and LVR above 90. Does that make sense? What are the ways to aid deleveraging?

1. Pay down debt but wage earners only have so much to pay down debt. There are living expenses.

2. Sell IP but that may come with a cost and out one backwards.

3. Getting a cheaper rate.

4. Get pay rise.

5. Get second job.

6. Sell depreciating "assets" like cars or use car next door to earn extra cash.

 

I can sense panic on this forum after reading threads in the last few days.

 

panic for highly leveraged entities

 

And it sells papers.

 

And the rebuke
Sorry, I doubt the RBA will be raising interest rates eight times over the next two years

 

I don't know whether its panic ? However, interest rates have been rising for some time now and markets such as Syd and Melb have been booming since 2013, perhaps we are getting close to peak. Auction clearances have fallen back. Spring may bring too much supply on market? I don't know.

Its just about managing debt. Investors on this forum do have multiple properties or continue to accumulate, interest rates have been at historical lows, but its changing.

I think smart investors should have already sorted out buffers, sold down..... manage debt, this can be a killer.

Also its not getting easier to source finance.

I don't think there is any need to panic, just manage the risk/debt.

 

I like how these "former" public servants and politicians making airwaves... never amazes me they keep writing memoirs and speak in public meetings... why?

 

I just ignored this, but you cant ignore the fact that regardless of RBA, interest rates are on the rise. Times are changing and its happening very quickly.

 

So true that it's not a big concern for some people, but do agree that with people with more than 10 properties, it will be an issue to manage the differences. Even if all my loans became P+I, I am pretty confident that I can weather the storm and fortunately due to the sharing economy, there are ways to make additional income. It's bad that we need to work additional hours at work but prefer doing that to still hold onto the properties as long term, I still believe in the properties that I hold and rental increases each year.

 

I'm not panicked.. just mildly p!ssed off that APRA once again takes a CAT D11 to crack a nut.

Taking measures thanks to an over-hyped market around Sydney, which only affects about 18% of the Australian population!

I can easily cover my debts even with P&I, and have been fortunate enough to secure some IO loans for the next few years.. but I'd much rather be putting my capital to better use than paying down deductible debt!

 

Good to know. You know what you're doing. A lot of noises and I'm not sure if it's helping FHB with rates set to increase 8 times. Psychology plays a bit part. Whilst I appreciate other forumites' intention to warn others, it transcends into fear invariably and I think some on this forum are already thinking of selling... just my gut feel.