WESTPAC, ING and National Australia Bank increase interest rates

Discussion in 'Property Market Economics' started by Air_Bender, 25th Nov, 2016.

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  1. Air_Bender

    Air_Bender Well-Known Member

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  2. +men

    +men Well-Known Member

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    will this cool down the heat of the sydney and melbourne market?
     
  3. Air_Bender

    Air_Bender Well-Known Member

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    No idea mate but this is the first time in quite a while I have seen a rate rise.

    It'll be interesting to see what the other major banks do.
     
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  4. Ald

    Ald Well-Known Member

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    The govt will cut the rate, the banks will increase the rate, notice one thing it's the biggest elephant in the biggest room ever.

    The banks raised their interest rates when the govt did not.

    That my friends is because of the economic terrorism of allowing cheap credit from foreign income printing presses to be used to pay for Australian property.

    Soon all of you will wake up with your hand in the bedpan and you will be voting for an Australian Trump to be pulling you out of the mess.
     
  5. Luka

    Luka Well-Known Member

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  6. Ald

    Ald Well-Known Member

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    So all Australians must suffer so that a few billionaire investors don't loose their money.

    Well done, now I now the country is doomed.
     
  7. Perthguy

    Perthguy Well-Known Member

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    *lose*

    *know*
     
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  8. Cactus

    Cactus Well-Known Member

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    Nothing to do with the jobs at stake in one of the only industries holding up the economy.
     
  9. Hodor

    Hodor Well-Known Member

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    Was just trying to fix with nab. Hope I haven't missed the 3.99% for 4 years.
     
  10. dabbler

    dabbler Well-Known Member

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    Careful, alleged esteemed Academic your correcting.
     
  11. Ald

    Ald Well-Known Member

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    Autocorrect on an iPad sucks.

    I don't usually make spelling mistakes
     
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  12. Ald

    Ald Well-Known Member

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    There is truth in your statement. Real estate and associated businesses made far more then mining in the last year.

    But that is actually a symptom of economic cancer that you are viewing as a positive.

    If you throw the entire wealth of the country into real estate and mortgages, who is going to invest in everything that is not real estate and not stock exchange?

    Will there be anything to invest in?

    Do you think that Australia will afford to pay for Chinese goods when they inflate the yuan, own all the mines and ship iron ore and coal out of the country for free. I think Australia gets between 25 cents a ton to $3 a ton in royalties. Depending on the price of iron ore.

    What will make the Australian dollar strong?

    Real estate is an unproductive asset.
     
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  13. Cactus

    Cactus Well-Known Member

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    As someone who has made a living from real estate I'd disagree. Incidentally so would everyone And everything I (read: my wife) spend money on from the baker to the candlestick maker.
     
    Last edited: 26th Nov, 2016
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  14. humptydumpty

    humptydumpty Active Member

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    You made very valid points.

    Irony is that our politicians do not understand the importance of job / industry creation via other ways. I was highly disappointed to read statements by PM ( both current and past ) about how they worry about value of own homes more than worrying about economy of nation.

    Australia needs to encourage industries setup , if we want to have something to do in future. A simple mechanism is to give industry tax breaks for setting up in remote areas where there is no population yet.

    Setup High speed trains like in Japan which will shorten the time to move. And if Government wants , give tax benefits to people living in those remote areas.

    The exact same 2 things are used by India and China.

    This will ease population growth in few cities , create jobs.

    People needs jobs so that is why they live in Sydney / Melbourne. Otherwise who wants to pay such a huge debt payments for most of the life span.
     
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  15. Fargo

    Fargo Well-Known Member

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    That's the silliest thing I ever heard. You just contradicted yourself when you said the Chinese will own the mines, mines are real estate ! Where do you think your cheap food energy and every thing else you use comes from, and how it gets to you ?. There are plenty of foreigners wanting to buy real estate because of its productive capacity so much so that the government puts restrictions on who can buy.
     
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  16. Tenex

    Tenex Well-Known Member

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    Of all the banks mentioned in that article ING direct (at least in Australia) is a joke not a bank. I have dealt with them as a client.

    The other ones is UBank (and not Nab) that's increasing so this just leave Westpac.

    If anything interest rates should go down in Australia because our economy consists of 25% finance and agriculture products and the remaining 75% is held together by sticky tapes and chewing gums period
     
  17. Dean Collins

    Dean Collins Well-Known Member

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    The irony is that St George reduced their term deposits last month from 2% to 1.5%......
     
  18. jins13

    jins13 Well-Known Member

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    As enticing as it is for me to fix my loans, I think I'll still keep it variable for the time being because I still want to have the flexibility and not sure how things are going to turn out in my personal and professional life for the next 5 years. My feeling is that the increase in rates wouldn't hammer buyer's confidence because it's still pretty low.
     
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  19. Barny

    Barny Well-Known Member

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    So am I understanding this correct?

    Fixed rates are going up cause everyone thinks Mr trump is going to spend heaps on building, which should see inflation so to counter the inflation interest rates need to go up.

    Australia could lose the triple AAA rating if budget isn't in check so the cost of foreign money will cost us more.

    Has any of the above happened yet for rates to go up?
     
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  20. C-mac

    C-mac Well-Known Member

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    There is some truth in the idea that foreign "printing press" money coming in to Aus is causing our banks' rates to increase, independent of any Reserve Bank increase.

    Folks you need to remember what the Reserve Bank actually is. People (including me for a very long time) make the incorrect assumption that because the name 'sounds' official/government, doesnt mean that it is! For some god-awful reason, The Reserve Bank of Australia (being, effectively a private bank just like all the others i.e. big-4 banks; having vested interests and commercial profit goals to hit) was given the responsibility many moons ago (1998 if I'm not mistaken? Maybe it was earlier than that perhaps...) to be the 'police' for the other commercial banks by effectively being allowed to set/control interest rates.

    This to me is a massive conflict of interest but what can us plebs do to change that? To me, a Gov department, not the Reserve Bank, ought to be responsible for setting interest rates. Gov has interest in the general economic prosperity of the nation. RB has commercial vested interest in making profit.
     
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