The next Rate Hike could be...

Discussion in 'Property Market Economics' started by Waterboy, 1st Nov, 2019.

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  1. Waterboy

    Waterboy Well-Known Member

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    ...NEVER

    Why the RBA will keep cutting rates

    "...the need for low rates is not a temporary phenomenon, but rather a powerful long-term dynamic driven by a fundamental excess of savings over the desire to invest in productive assets....
    "
     
  2. mues

    mues Well-Known Member

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    Can we accept in general - nobody has any idea what’s coming next?

    Buy when you can. Sell when you need to. Have a flexible strategy.

    I locked in half my home loan at half fixed half variable 9 months back because rates were going up. Everyone knew that. Except they didn’t. We are all guessing.
     
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  3. Beano

    Beano Well-Known Member

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    Yes you will always be half right and half wrong no matter which way it goes :)
     
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  4. kierank

    kierank Well-Known Member

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    ... and have plenty of cash stashed as your reserve/offset accounts
     
  5. marmot

    marmot Well-Known Member

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    The U.S fed are certainly not doing us any favours by dropping rates again and really nullifies the latest rate drop by the RBA as it tries to create jobs with the latest rise in the AUD causing the opposite to happen.
     
  6. Andrewjh

    Andrewjh Well-Known Member

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    Yes so RBA would have to cut again to get the same effect.

    good news for property owners. More petrol on the fire
     
  7. marmot

    marmot Well-Known Member

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    Its not good news for property owners if the country goes into recession, with the current state of the economy thats quite possible especially when you look at consumer spending and for the RBA to stimulate wage growth it needs to create lots of jobs.
    If the U.S fed drop their rates and our dollar rises , it does the opposite for our economy and for job creation ,it like lifting interest rates, it destroys jobs.
    With our extremely high debt levels, all in one asset class, it creates a lot of problems if unemployment starts going in the wrong direction.
    At the same time immigration slows right down if the jobs aren't here, especially in a recession.
     
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  8. Angel

    Angel Well-Known Member

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    LNP in QLd wants to create jobs through massive infrastructure building.
     
  9. d_walsh

    d_walsh Well-Known Member

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    Chris has a good track record. A few bold predictions over the last 3 years which proved to be ahead of the curve as ultimately came to fruition.
     
  10. Peter2013

    Peter2013 Well-Known Member

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    Yes, doesn't Australia have the second highest level of household debt in the world!! It's not clear if Australians will be able to service this during a recession.

    We are already seeing increasing numbers of Mortgagee In Possession sales:
    For example:
    61 LANCASTER Avenue, Punchbowl, NSW 2196
    373 West Botany Street, Rockdale, NSW 2216
    https://www.realestate.com.au/property/unit-3-45-yerrick-rd-lakemba-nsw-2195
    1 Mitchell Road, Mosman, NSW 2088
     
  11. TSK

    TSK Well-Known Member

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    might be other ways of doing it BUT if you get that annoying subscribe thing that hides the content and you are using chrome:
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    4. F8 to pause the javascript so the subscribe overlay does fire
    5. Read content