Heise Says
#interestrates #housingmarket #heisesays
Will you miss the interest rate peak?
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Don't forget Philip will be gone in September. The new RBA board made up of labour hacks will drop the rates and fuel inflation
Florian PIETÀ!! Please PIETÀ!! do you want to understand that these is a demolition of dollar currency under a controlled environment? It is evident, it is so clear, it is so obvious that even a kids can see it. They will Impoverishing little by little, drop by drop. They are using the boiled frog technique, do you know it? Very simple, put a frog in a pot with warm water, and little by little increase flame… When the frog realizes that the water is boiling it will be too late for her to jump out… Capisci ??
Benefit of high rates.. is if you pay double the minimum repayment on a 10% loan, you pay off a 30y loan in 6.6y. On 1% interest, doubling your paying only takes you down to 14y.
Heinz beans were 1.04€ in 2020 in Ireland now they're 1.90€ in 2023
Apostolic Nuncios of the Vatican Catholic bank were appointed in Protestant UK for the first time ever in 1982, in Protestant USA in 1984, and Australia in 1998 after the Vatican run EU was formed. Things have gone down hill since then!!
Deluded people. Do you even remember the 1990s? 20% unemployment, 19% interest rates. Wake up! Downsize yr debt now. Sell the car, the jet ski, and find the kids a half decent Indy school, holiday in Bermugui. Adjust now and the Bank won't repossess. Put some cash in a Term deposit so you can pay yr Council Rates with the interest. Capital is emergency money in case one of you loses hours. Peak oil, war, foreign capital to Australia means croupier is coming for us, AI/Digital means Boards are restructuring businesses now. Want to be angry at someone? Sell the McMansion and the jet ski and spare yourselves lining up rentals going for $700 per week if yr in Sydney or $600 elsewhere.
Banks are are a bunch of greedy pricks responsible for the problems we are living with today they are just hoping it’s going to work out for them in reality they shouldn’t have been giving out $1 million loans to people who couldn’t afford it in the first place
If they really believe this then fixed rates should average over the period
Where is the guaranty that this isn't just wishful thinking? What about inflation after a pivot?
Then there will be cuts 🤣🤣🤣🤣🤣🤣🤣🤣
Rubbish. Rates need to stay around 3-4% not only to tame inflation but to keep it under control in the long run. The RBA are pretty stupid, we all know that. But I doubt even they are so stupid as to destroy rates yet again after just managing to get them back to normal levels.
Australians have a lot of money but it's generationally split. There is a lot of wealth spent in the boomers and older gen X. They the ones spending and causing inflation as they have the spare cash. They bought property when it was cheaper, have oodles in retirement and savings and dont care about saving. So younger, less flush people are competing for limited resources using debt. It's a dangerous situation because younger people will become angry instead of tightening their belts….. both generations are contributing to this pain but they have different outcomes…..personally I'm gen x, with a mortgage so am lying low this year, waiting for 3 years for my low rate to come off and hoping to pay down my loan….
Boomers had it easy. 7%-16% is a 154% increase…..0.1% to 3.5% is 3400% increase. Rate of change and speed of change is what matters and has greatest effect. The level isn't as important as the relative change
Please stop saying the rates aren't REALLY high, because once upon a time they were double digit. Once upon a time you could buy a house and raise kids with only one parent working. Housing is so much more expensive now that 4% may well feel as unaffordable as 15% once did with a much smaller mortgage.
Mr Shiff has said 4.1% by Christmas. If and when they start to cut rates. The system has failed and they will let the system crash. Clincher is, the USA estimates that 1.2 million new houses will be built in the next 12 months. builders are already cutting new house and land packages on finished homes by $100k to get rid of them.. It will take 12 months for the USA market to hits us, as it did in 2010 /2011.. 🙂
Those with fixed rates ending this year will have had 12-18 months to prepare by saving and having a buffer. Those who didn't have themselves to blame, those who couldn't were always going to struggle regardless.
Keep dreaming if you think rates will come down soon 🙂
Bullsh1t, they need to go to 6 and also stay above 4 to stop inflation going nuts again.
I don’t care about Australia after my forced vaccine injury, hopefully it crashes and burns!
Watch all the businesses go broke and everyone becomes jobless….watch these politicians flee like roaches in the light.
Exciting times, sitting and watching the shit show!
Oh no poor boomer had a 150% rise from 7.8%-19% with property prices of $60k-$80k
Today’s people have a rate rise of 3500% from 0.1% to 3.5% with property prices at $1 million?
Start telling the truth and stop manipulating the data?
Or are you being part of the financial system propaganda to try and convince people to not be in the streets rioting?
4-7% are historical averages. If they left them at that then this mess could have easily been prevented.
Another dose of hopium for home owners. A prediction of 2 ~ 3% inflation mid 2025 is a ridiculous fairy tale.
Is there anything more immoral than central banking?
I do find it funny when people compare paying 18% interest rates with 4% and are like "I HAD IT WORSE DURP DE DURP"
It's all relative to other factors, something a number of boomers and the likes cant seem to quite grasp.
Sure, you were paying 18% (and decreasing) on a median $80,000 loan (That's $1200 a month), Well I'm paying 5% (and increasing) on a median $680,000 loan (That's $3660 a month).
That's 205% more (and increasing) than what you were paying when interest rates hit 18%.
Now contrast that against wages, the median wage in the early 90's (for metropolitan areas) was $30,000. The median wage now is $65,000. That's 116% more than what they were in 1990.
If the difference between those two numbers doesn't clearly show that 5% now is worse than 18% then.. well… perhaps try using your fingers.
It doesn't only stop at the disparity between interest rates and wages growth; the price of essential goods and services have increased by a large margin too, take petrol/diesel for instance.
Petrol in 1990 cost an average $0.60/L, petrol in 2023 costs $1.78. That's 196% MORE than what it cost in 1990, and given the affordable parts of the city are on the outskirts you're now using more petrol to get to the city center for that median wage.
The fact of the matter is inflation of everything has not kept paces with wages; yes they may have been a "Goldilocks" artificially low rate period (further driving property price inflation) but that time has come to an end and anybody that bought in it is now suffering.
You can blame the people who bought during this time, but I bet you will be the first to winge about how the younger generations are staying at home longer (because what else are they supposed to do… I mean really…) while they wait out the property storm we are seeing.
TLDR;
According to boomers it's all your fault despite they were the ones who fostered this economic environment in the first place.
Mathematically it's quite easy to prove things are harder financially now relatively speaking than it was in 1990.
Why cut it? 4% should be normal. How about they raise it to 4% and just leave it alone and let the "free" market adapt to it. The rba is a failure at all its tasks so just get rid of them.
How many people haven’t woken up to the fact they have been duped..
y’all in debt prison people!
Strap in it’s going to be a hard 5-10 years.
4% is high. The % number is just a number. It's the effect it has that makes it high.
It's the banks fault. The fuelled the property bubble to the point that a normal person has to get a loan that is 7 or 8 multiples of their incomes, to afford an average house
They trying to give people hope,lol.
You can’t trust anything the Banksters say!
I locked in for 5 years because you can’t trust them.
Damn three bean mix is good in a tomato salad.
something will break in the economy and that's all the rba will be able to do but by then most will have lost their jobs so they still won't be able to take advantage of the low prices.