RBA - Wespac tip two interest rate cuts in 2019

Discussion in 'Property Market Economics' started by MTR, 25th Feb, 2019.

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  1. sash

    sash Well-Known Member

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    Will be totally ineffective...even if there is a 50 basis point cut the banks will pass on only 40 point..issue is credit crunch!

    They need to let more credit through....I can see rents heading up 15-20% in the next 3 years which is also inflationary..if they don't change some of the APRA policies. This will be far more effective.

    Its like going back to feudal system...in OZ...people with assets returning income will be the winners. I have worked out that on portfolio...that is 75-100k of extra income. Sure not every are will be impact but I feel with 85% of my portfolio outside of Sydney (not counting regional NSW and Central Coast) even if get say 10% growth at 80% that is an additional 40%. Places like Perth, Brisbane, Adelaide, Geelong, and Melbourne are going to grow a lot quicker in rents...the signs are already there....
     
    sash, 10th Apr, 2019
    #21
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  2. AlbertWT

    AlbertWT Well-Known Member

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    Looks like CBA has already done the head start: Commonwealth Bank cuts home loan interest rates | Canstar
    Most probably, the other big lender will follow suit, especially when combined with a $2000 refinance fee.

    I never thought that this is possible given the higher USD$ (cost of borrowing).
     
    AlbertWT, 10th Apr, 2019
    #22
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  3. MTR

    MTR Well-Known Member

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    Yes.... now lets see if banks pass it on

    Watch AUD nose dive
     
    MTR, 10th Apr, 2019
    #23
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  4. mickyyyy

    mickyyyy Well-Known Member

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    Are they doing any good deals on IO?
     
    mickyyyy, 10th Apr, 2019
    #24
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  5. AlbertWT

    AlbertWT Well-Known Member

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    I have not checked the details with the bank yet.
    will let you know when I got the chance to do so.
     
    AlbertWT, 10th Apr, 2019
    #25
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  6. ChrisP73

    ChrisP73 Well-Known Member

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    Hmm not particularly imo. For investment loans sweet spot seems to be 2 years fixed P&I at 3.89 on package
     
    ChrisP73, 10th Apr, 2019
    #26
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  7. bamp

    bamp Well-Known Member

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    What makes you think this? Would love this to be the case!
     
    bamp, 10th Apr, 2019
    #27
  8. AlbertWT

    AlbertWT Well-Known Member

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    AlbertWT, 10th Apr, 2019
    #28
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  9. AlbertWT

    AlbertWT Well-Known Member

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    with the oversupply OTP property rate at the moment, it is too optimistic to reach that number.
     
    AlbertWT, 10th Apr, 2019
    #29
  10. sash

    sash Well-Known Member

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    A lot of builders not able to get projects off the ground. Once this happens...it takes awhile for supply to be turned on again...it could take years.

    The other factor is of Labor gets in rents will definitely rise..
     
    sash, 11th Apr, 2019
    #30
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  11. sash

    sash Well-Known Member

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    Maybe not Sydney but definitely Brisbane and Melbourne.
     
    sash, 11th Apr, 2019
    #31
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  12. AlbertWT

    AlbertWT Well-Known Member

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    :rolleyes: Isn't that contradicting to what the people ask for when ALP won?

    Yes, I agree with that, it does make sense.
     
    AlbertWT, 11th Apr, 2019
    #32
  13. Kangabanga

    Kangabanga Well-Known Member

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    Alp has a chance to win now that election been called. :D we'll see what happens after... Bring out de popcorn.
     
    Kangabanga, 11th Apr, 2019
    #33
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  14. mickyyyy

    mickyyyy Well-Known Member

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    mickyyyy, 11th Apr, 2019
    #34
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  15. mickyyyy

    mickyyyy Well-Known Member

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    There's 60,000 units apparently to be built in Sydney but I know for sure most of them wont get built, as prices are falling and less demand and other in the works currently...

    Commercial is growing big time thou...
     
    mickyyyy, 11th Apr, 2019
    #35
  16. rizzle

    rizzle Well-Known Member

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    Are you talking about your portfolio Sash? Do you currently have ~$500k in rental income?
     
    rizzle, 11th Apr, 2019
    #36
  17. sash

    sash Well-Known Member

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    Yes I am....subject to me finishing off one build....which will complete in 2020. Will be more but will sell one..
     
    sash, 11th Apr, 2019
    #37
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  18. MTR

    MTR Well-Known Member

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    MTR, 24th Apr, 2019
    #38
  19. Waterboy

    Waterboy Well-Known Member

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    Denial is Not a River in Egypt
    Last edited: 24th Apr, 2019
    Waterboy, 24th Apr, 2019
    #39
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  20. Waterboy

    Waterboy Well-Known Member

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    and today, swap rates are down approx 15 bps across the yield curve

    i.e. banks' funding costs are down down down, and have scope for rate cuts especially fixed rate products!
     
    Waterboy, 24th Apr, 2019
    #40
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