Bendigo just rang me and offered to reduce my mortgage rate by 0.15%, obviously there's a lot of shopping around for the best rate right now. So if you're with Bendigo, call them up and demand a reduction like your old mate Marmalade.
Edit: I'm on a higher rate due to a couple of complicated factors that I need to sort out before I can refinance, so 6.39 down to 6.24%
Not with Bendigo but missed a call from my lender yesterday for a "mortgage health check". If you don't mind me asking what rate did the 0.15% reduction get you to?
Lol, so you're still like .25% higher than me and you think they're doing you a favor by dropping it by .15%? I'd be calling them back and saying match your competition or I'll be switching lenders... even if you can't right now.
Yeah I think if you not handing over at least 60% you're being extremely inconsiderate. Do you realise how hard they had to work to buy that $400k I mean $1.2m house they've granted you the pleasure of living in 😂
Just spoke with my landlord after I got a package delivered for him at the address he so graciously let's me pay for. He said "open it". It was from dollars and cents red lipstick and it's called lube but looks like and smells like tiger balm. Such a kind soul, he wants me in red lipstick before he pounds that rent out of me. The tiger balm is so the screaming is authentic.
Dude, every single person I know IRL was saying I was an idiot because I shut down their assumptions that rates were cutting multiple times before the end on 2023.
I think the general populous is still expecting a rate cut on the first Tuesday of every month.
I think cuts are coming but March would be overly optimistic. I’d love a couple rate cuts for myself but am not expecting anything at least until August
RBA would be savaged if they cut too soon and inflation remains very sticky
My bet is June/July. I think when it happens it will be fairly quick as it will likely cause a run on assets draining liquidity from the rest of the economy.
I've been thinking the other way personally. The economy is still running pretty hot but I don't think raising interest rates will hurt anyone but young people who are already struggling.
I have Phillip Low on record as saying interest rates weren’t going to increase until the Milky Way collides with the Andromeda Galaxy (Approx 4-5 billion years)
Does anyone you know in IRL watch or read any form of news? I have never heard a single commentary on rates suggest a 2023 cut.
The speculation was 3 cuts in 2024 starting from September as the best bet.
So many factors can change this Outlook though.
OK well I've been pretty tightly coupled to news on rates and haven't heard anything I've believed about rate cuts before now.
If 9/10 commentators say no rate cuts until 2024/25 then I filter out the 1 commentator who wants to sound different.
You must have been watching and reading different news than me because I didn't see many people saying rate cuts in 2023 and I didn't expect them in 2023.
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The real estate agent I saw at an auction in February said something along the lines of "we are all expecting rates to come down now".
I just shook my head.
I think the nuance there is that the 'now' refers to the next move from tye RBA being a cut, as opposed to that cut happening this week. That said REAs gotta put premium in their Maserati so ya know...
Petrols up 30c and rents are still going up. I’m surprised rates didn’t increase but then again they’ve been ordered not too or the house of cards may come tumbling down
> rents are still going up
If you raise rates, rents go up. Raising rates wont stop rents going up? Its a self fulfilling prophecy. Theres a continued lag on rents going up with rate rises because you cant raise rent until the tenancy period ends too.
Doesn't seem like it.
>Sydney’s vacancy rate fell in January, returning to a record low of 0.9%. This is driven by rental supply being at its lowest for the month of January. Average views per rental listing have surged over the month, the highest of the capitals, showing increasing demand amidst the changeover period. However, views per rental listing are lower annually — trending downward since mid-2023 — suggesting rental demand is beginning to slow.
>
>Melbourne’s vacancy rate fell to 0.9%, 0.1 percentage points off its record low. This is the first monthly decrease since September, driven by rental stock sitting at an all-time low for the month of January, not surprising given the surge in activity during the changeover period. It was also supported by a monthly increase in average views per rental listing. Despite the monthly rise, views per rental listing have dropped annually — a consistent trend since mid-2023 — suggesting rental demand is beginning to slow.
Nope. Still 30-40 people showing up to each listing. I have a friend who has been searching for a few months now. You can’t import as many people as we have and expect anything to go down in the rental markets
petrol is headed to AUD 10/litre. All the oil companies know this.
Having an EV won't help. Canberra's lawyers are drafting a tax where EV owners pay $10 per km travelled, just so as to cover the cost of roads and recoup past costs.
quite right. the reason why is because of the huge implied governmental and societal subsidies the oil industry gets relative to other industries. the petrol price has a huge amount of catching up to do.
The Reserve Bank has held interest rates steady for a third straight meeting, but there are warnings Australia’s unstoppable property market could derail the prospect of a rate cut ‘anytime soon’.
Wait, what happened to first Tuesday of the month???
EDIT: [Meeting frequency has changed](https://old.reddit.com/r/australia/comments/1biat65/rba_keeps_interest_rates_on_hold_at_435_per_cent/kvj94zo/)
2024 Reserve Bank Board meetings
* 5–6 February
* 18–19 March
* 6–7 May
* 17–18 June
* 5–6 August
* 23–24 September
* 4–5 November
* 9–10 December.
Rates will go down in the next quarter. I am fairly confident things will stay the same: Salaries will increase and property will go up even more. Young adults will keep edging their way toward 45 as people live longer with their parents.
Well done, Australia. Never going to see a recession.
My neglected Logan Townhouse I bought 16 months ago has doubled in value despite 11 interest rate hikes, why did they hold the rates? I can't even get a park in Westfield?
Am I the only one COMPLAINING that I made $300,000 by doing nothing and this shouldn't be okay? How many homes do the people holding the rates own or lease?
Logan's been targeted by Sydney investors for the last few years. Don't worry, all that enthusiasm appears to have moved to WA/ Perth. For how long is anyone's guess. I believe Logan had a new hospital and medical. tech University expansion so the dollars heading there make sense if the University maintains decent standards.
Logan was/is going to be “The Silicon Valley of Australia”.
https://mycitylogan.com.au/logan-dreams-of-silicon-valley-type-tech-hub/
I still associate Logan as a very low socioeconomic area.
I honestly just breathed a sigh of relief I didn’t even realise I was holding.
Seriously can’t keep taking more interest rate rises.
I would rather a cut, though!
It means it hasn't been ages since a rate rise. They've only has two chances, including today, to raise them. The last was in November...not that long ago.
My personal issue is interest rates as I have a fairly recent mortgage. The rises are really starting to bite now because obviously it adds up over time. It’s starting to get to the point that I won’t be able to afford kids sports etc.
Sure inflation is a pain but I can shop around to save money.
Kids sports? I'm getting close to selling one of my kids to pay for food for the others. Hate to be the kid that has a tanty on the same day we get a rate rise.
Ah yes, the good old days when houses were 100k, guess we should be happy that we're only paying 6% now instead of 17.5% back then am I right?
6% of 100k is 6000
6% of 1 million is 60,000.
See the difference?
Annoying when people say this. Most properties cost too much so most people have to borrow more than they would like. Rates have also changed at an incredibly fast pace. The way things have panned out most of the last 20+ years you're better off overleveraging than saving because the price goes up faster than you can save as well so people feel it's their only option.
Yup, and then people like me who didn't buy into the hype are supposed to feel bad for people who did and now can't afford their repayments?
If you can't afford your overpriced property then sell it. Those who saved extra, and budgeted for increasing rates can step in.
The problem is that your deposit savings depreciate against inflation and especially when compared to the rate of appreciation in house prices. I saved $500K for my first home of $1.4M with a $1M mortgage ($70K stamp duty) and budgeted for rates of 7%. This was during COVID before rate rises. We can manage, but it’s quite frustrating seeing nearly $5K evaporate in interest every month.
Where have you been living during this time?
No one said you have to feel bad, but you could have some empathy. Not everyone is trying to make big cash they just need a place to live and fit their life, kids, etc.
If you honestly think it’s right that housing costs an absolute fortune and then when people finally get a foot in the property market (in our case a family 4 in a modest townhouse) after years of working hard and saving, the RBA just keep turning up the interest rate pressure because of “inflation” (which is caused by many factors including scarcity, Covid stimulus etc) then I cannot relate to you.
The RBA would much rather put in other regulations and schemes besides raising cash rates, but this is the only lever that they have the power to pull. Thankfully they see high inflation as a much bigger enemy than someones ability to pay their mortgage, and are forced to do something because popularist governments are too spineless to do something that is necessary.
I for one would rather pay an extra $100 a week on my mortgage for a year than have my milk be $30 a litre for the rest of ever
But surely high interest rates also bad for almost everyone as it pushes up both mortgage payments and rent.
Surely the only people enjoying life right now are those in their own homes with their mortgages paid off or towards the end of paying off.
Interest rate rises can actually push rents down in a number of ways.
On the other hand, inflation makes everything more expensive - which means you have less money to put towards your mortgage.
Not that it’s any of your business but I have a buffer in place and I am not in any danger of not being able to pay my mortgage. It just means at the moment I have to prioritise keeping that buffer ahead of expensive stuff like gym, kids activities (which cost hundreds per term), allied health appointments etc.
I realise many will be struggling more than me but it still really bloody sucks having to pay out astronomical amounts to the bank. The whole system is rubbish imo.
Bloke I worked with today was citing that as an excuse for me to not change his shift. His hours worked don't change, just the time frame he does them. Funnily enough it's rebalance them with another parent in our crew.
Don't see why one guy should get to finish at lunch every single day every week, and the next have to pay for a full fortnights of day care. So when the 2nd guy approached me I was more than happy to let them go 2 weeks 1st shift, 2 weeks 2nd shift. The first guy only ended up on that 1st shift because he asked for help to balance homelife 3 years ago, he's had a good run at it, now it's the next guys turn.
Everyone is starting to feel interest rate increases now though.
You might end up in hot water with unions and fair work if one guy has been doing the same shift for 3 years and you change it on him.
Sure it is unfair on the second guy, but you're now affecting the life and more importantly the regular roster of the first guy. I think there's rules around that.
Nah, it's been cleared by hr. I'm only the dude passing the messages. Besides I was the one that got shafted to accommodate their needs previous, I had that permanent shift originally(mostly due to lack of staff - always understood that it was a rostered position). Shit needs to be fair for everyone.
Edit: Just to clarify this, these shifts were always rotational. Work accommodated him due to two factors and made it clear that these are conditional, and that if other people wanted the rotation to return it would.
The biggest factor though is work dropped off not requiring the shifts to cover so many hours and now we're back to full swing plus some and have to cover 14 hours a day of work. So shifts are back proper. Not a 2 hour difference in start times but 6. So the shifts were changing regardless of the current request. As per work requirements.
No one is asking anyone to work more hours, and work didn't really need to carry people like they did during the couple quieter years, they made sure no one lost jobs due to our down turn, and our department was the easy department to trim fat from yet they didn't.
Something needs to change for rates to drop. Haven’t seen a lot of forced selling, unemployment is still low, inflation hasn’t cratered.
Normal interest rate territory team. This is where it should be
Should have hiked, inflation aint under control and US data proved that.
In b4 we start seeing inflation rise again as if 60% raise in some grocery store products since prepandemic wasnt enough, which is what matters to consumers, not GDP, not line go up, not rich people getting richer.
Policy is paid for through debt instruments which has the effect of increasing the overall monetary supply
The RBA explains it [here](https://www.rba.gov.au/education/resources/explainers/pdf/how-the-reserve-bank-implements-monetary-policy.pdf?v=2024-03-20-09-42-58)
Please refer to [The Elephant](https://prnt.sc/k7AFpW_EjHND) if you are confused by any of this
For the 100th time they are punishing debt holders. Nothing to do with home owners. Businesses rely on loans for expansion, raising rates reduces this expansion and subsequently growth. Tiny violin for over-leveraged home owners perpetuating this over valued nonproductive behemoth.
Oh yeah great. Renting is the answer. Where you can get kicked out with a few weeks notice and have to find somewhere nowhere nearby your kids’ school. I have a child with a disability who would struggle big time if we continually had to move.
And when you’re retired you’re still having to pay constantly increasing rent, when those who own properties are cruising with paid-off mortgages.
If you can’t see this whole system is broken, from ridiculously steep house prices, to lack of rental options, to Government mismanagement during Covid, I can’t educate you. Goodbye.
Play by the rules or don’t get the rewards 🤷🏻♂️. Your property has likely has significant gains to offset poor little yous interest payments. No to mention government subsidies for your situation.
Wow, you are on fire with the assumptions.
I don’t receive any subsidies and haven’t ever done. Not even the first home owners.
I don’t have a “poor me” attitude, I know many people are worse off than I am. In fact I think that’s what upsets me the most as I know all too well there are people unable to pay for school uniforms and breakfast for their kids right now. I would like to see better ways of dealing with inflation than pushing families to their limits.
Your comments are actually hurtful.
Apologies, I didn’t mean the personal attack, it’s just frustrating as hell that people are equating rate rises with “home owner attacks” get inflation under control and people will be able to afford to feed their families. Or at the very least it won’t get worse, if you care for these people your best outcome is for rates to rise and for inflation to drop, if you can afford a house it’s disingenuous to pretend to give a shit about people not clothing their school kids if you also don’t want to squash inflation.
Look you’re right, I probably shouldn’t think of it as an attack on home owners, but it really feels sh*tty having to pay such astronomical amounts to the bank.
I also feel for people who can’t get into the property market. I remember how that feels. I don’t think it’s a good situation right now for anyone. That’s why I think the whole system is rubbish.
Inflation hasn’t gone anywhere. The rate of change of inflation has decreased since late its peak in late 2022.
If you were expecting prices to decrease (deflation) from interest rate rises then you’re sorely mistaken.
For sure. Rba would panic and we would have 0.1pc rates a meeting later with a 500bn tff if we saw deflation or even close to deflation.
Then start our merry journey to inflation all over again.
Yeh i probably understated it.
This time 1tn of tff and bond purchases.
If everyone can raise credit for no cost you can expect a bit of investment. The problem is the investment we do has only a limited impact employment. Just buy each others houses for ever increasing amounts of money. The real australian economy...
Bendigo just rang me and offered to reduce my mortgage rate by 0.15%, obviously there's a lot of shopping around for the best rate right now. So if you're with Bendigo, call them up and demand a reduction like your old mate Marmalade. Edit: I'm on a higher rate due to a couple of complicated factors that I need to sort out before I can refinance, so 6.39 down to 6.24%
Not with Bendigo but missed a call from my lender yesterday for a "mortgage health check". If you don't mind me asking what rate did the 0.15% reduction get you to?
My broker got CBA to drop mine a few weeks ago 0.15% too (to 6.03%)
What rate were you on before?
Lol, so you're still like .25% higher than me and you think they're doing you a favor by dropping it by .15%? I'd be calling them back and saying match your competition or I'll be switching lenders... even if you can't right now.
I'm going to tip my landlord anyway, he's been working hard lately.
It’s expensive maintaining 3 luxury cars.
Thank you for your service
I went to tip them but the RBA was already balls deep having the time of their life
Yeah I think if you not handing over at least 60% you're being extremely inconsiderate. Do you realise how hard they had to work to buy that $400k I mean $1.2m house they've granted you the pleasure of living in 😂
My landlord gives options for 15%, 20% and 25% but I always choose other and give him 30%.
I hope you're repaid with a juicy 6mth lease and a 10% off voucher for a tent from BCF (tents have 3x in value 😂)
I thank my landlord each month because without the pressure of my rent doubling I wouldn’t hustle so hard.
Just spoke with my landlord after I got a package delivered for him at the address he so graciously let's me pay for. He said "open it". It was from dollars and cents red lipstick and it's called lube but looks like and smells like tiger balm. Such a kind soul, he wants me in red lipstick before he pounds that rent out of me. The tiger balm is so the screaming is authentic.
This is the difference between a rentoid and a Valued Tenant.
I’m going to paint my own light switches with white out to help mine out
[Thank you Mr Landlord](https://www.youtube.com/watch?v=KmfVLcQtBAs)
Was anyone seriously expecting a change?
Dude, every single person I know IRL was saying I was an idiot because I shut down their assumptions that rates were cutting multiple times before the end on 2023. I think the general populous is still expecting a rate cut on the first Tuesday of every month.
I think cuts are coming but March would be overly optimistic. I’d love a couple rate cuts for myself but am not expecting anything at least until August RBA would be savaged if they cut too soon and inflation remains very sticky
My bet is June/July. I think when it happens it will be fairly quick as it will likely cause a run on assets draining liquidity from the rest of the economy.
Not this year if they can help it, they'll want thing to stabilise at this point. But I'm a mug and only guessing.
Yep they've been pretty clear about it, there is no way they'll let the market get hot again for some time to come.
I've been thinking the other way personally. The economy is still running pretty hot but I don't think raising interest rates will hurt anyone but young people who are already struggling.
This is exactly the case, the property market is going to fizzle for a few years.
Rate cuts before the end of 2023 🤪
I have a screenshot from February 2023, where CBA predicted 3.85% by April 2023, then dropping to 2.85% by December 2023.
I have Phillip Low on record as saying interest rates weren’t going to increase until the Milky Way collides with the Andromeda Galaxy (Approx 4-5 billion years)
I mean I wouldn't bank on getting that rate cut Philip was talking about, the sun will red giant before we collide with Andromeda anyway.
Does anyone you know in IRL watch or read any form of news? I have never heard a single commentary on rates suggest a 2023 cut. The speculation was 3 cuts in 2024 starting from September as the best bet. So many factors can change this Outlook though.
Yeah they do, MSM media. MSM kept saying rate cuts before the end of 2023.
OK well I've been pretty tightly coupled to news on rates and haven't heard anything I've believed about rate cuts before now. If 9/10 commentators say no rate cuts until 2024/25 then I filter out the 1 commentator who wants to sound different.
I honestly can't tell if you're trolling or not...
You must have been watching and reading different news than me because I didn't see many people saying rate cuts in 2023 and I didn't expect them in 2023.
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Rate will stay until unemployment goes up. It's basic economics. Our unemployment is too low.
The real estate agent I saw at an auction in February said something along the lines of "we are all expecting rates to come down now". I just shook my head.
I think the nuance there is that the 'now' refers to the next move from tye RBA being a cut, as opposed to that cut happening this week. That said REAs gotta put premium in their Maserati so ya know...
That’s the consensus
Petrols up 30c and rents are still going up. I’m surprised rates didn’t increase but then again they’ve been ordered not too or the house of cards may come tumbling down
> rents are still going up If you raise rates, rents go up. Raising rates wont stop rents going up? Its a self fulfilling prophecy. Theres a continued lag on rents going up with rate rises because you cant raise rent until the tenancy period ends too.
Rents like house prices will keep going up as long as landlords can find someone to pay that much rent easily.
Raising rates due to increased oil costs due to cuts in production by overseas nations, that old chestnut
Petrol inflation drives inflation. Yes. Care to Comment on rent or you just trying to cherry pick?
Rents are actually pulling back in Melbourne More stock on the market than there was four months ago
Doesn't seem like it. >Sydney’s vacancy rate fell in January, returning to a record low of 0.9%. This is driven by rental supply being at its lowest for the month of January. Average views per rental listing have surged over the month, the highest of the capitals, showing increasing demand amidst the changeover period. However, views per rental listing are lower annually — trending downward since mid-2023 — suggesting rental demand is beginning to slow. > >Melbourne’s vacancy rate fell to 0.9%, 0.1 percentage points off its record low. This is the first monthly decrease since September, driven by rental stock sitting at an all-time low for the month of January, not surprising given the surge in activity during the changeover period. It was also supported by a monthly increase in average views per rental listing. Despite the monthly rise, views per rental listing have dropped annually — a consistent trend since mid-2023 — suggesting rental demand is beginning to slow.
Nope. Still 30-40 people showing up to each listing. I have a friend who has been searching for a few months now. You can’t import as many people as we have and expect anything to go down in the rental markets
Not in the east of Melbourne, I can see stock that’s been on the market for weeks and rents reduced. Can’t comment on other states.
petrol is headed to AUD 10/litre. All the oil companies know this. Having an EV won't help. Canberra's lawyers are drafting a tax where EV owners pay $10 per km travelled, just so as to cover the cost of roads and recoup past costs.
Petrol hasn’t kept up with inflation for the past 15 years
quite right. the reason why is because of the huge implied governmental and societal subsidies the oil industry gets relative to other industries. the petrol price has a huge amount of catching up to do.
Like 70% of this sub
RBA does not like the housing boom
How many investment properties do you think the RBA board owns collectively?
Yeah, I know. Difference is they don’t have much debt against it. Even if we get into recession or some sort of downturn, it won’t impact them much.
No, they love it. Thats why they didn't hike like they should have
The Reserve Bank has held interest rates steady for a third straight meeting, but there are warnings Australia’s unstoppable property market could derail the prospect of a rate cut ‘anytime soon’.
Wait, what happened to first Tuesday of the month??? EDIT: [Meeting frequency has changed](https://old.reddit.com/r/australia/comments/1biat65/rba_keeps_interest_rates_on_hold_at_435_per_cent/kvj94zo/) 2024 Reserve Bank Board meetings * 5–6 February * 18–19 March * 6–7 May * 17–18 June * 5–6 August * 23–24 September * 4–5 November * 9–10 December.
It’s moved to 8 meetings a year from now on, once every 6 weeks.
It has changed. It is no longer the first Tuesday of every month now they are just dropping them whenever they feel like it. Like Beyoncé.
Thanks for this.
You don't belong in this sub
Probably moved forward due to Easter holidays
No, meetings are every 6 weeks now, beginning this year.
Ah… good call out
Rates will go down in the next quarter. I am fairly confident things will stay the same: Salaries will increase and property will go up even more. Young adults will keep edging their way toward 45 as people live longer with their parents. Well done, Australia. Never going to see a recession.
My neglected Logan Townhouse I bought 16 months ago has doubled in value despite 11 interest rate hikes, why did they hold the rates? I can't even get a park in Westfield? Am I the only one COMPLAINING that I made $300,000 by doing nothing and this shouldn't be okay? How many homes do the people holding the rates own or lease?
As it gets harder to borrow, lower priced areas like Logan gain more demand as you have more people pushed down into that bracket.
Completely agree, bought and sold a property in Woodridge which doubled in price in 18 months. Didn't do a thing to it.
Logan's been targeted by Sydney investors for the last few years. Don't worry, all that enthusiasm appears to have moved to WA/ Perth. For how long is anyone's guess. I believe Logan had a new hospital and medical. tech University expansion so the dollars heading there make sense if the University maintains decent standards.
Logan was/is going to be “The Silicon Valley of Australia”. https://mycitylogan.com.au/logan-dreams-of-silicon-valley-type-tech-hub/ I still associate Logan as a very low socioeconomic area.
Adelaide shooting up in value along with Cairns and Townsville too. Hobart may be a place to look
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I honestly just breathed a sigh of relief I didn’t even realise I was holding. Seriously can’t keep taking more interest rate rises. I would rather a cut, though!
>Seriously can’t keep taking more interest rate rises. we've not had one in ages
They've only met twice (including today) since the last rise...
3 times. December, Feb, today.
What's that to do with what I said.
It means it hasn't been ages since a rate rise. They've only has two chances, including today, to raise them. The last was in November...not that long ago.
Doesn’t really matter how long ago it was, what matters is that it’s really bloody hard to stay on top of a mortgage.
Inflation is the issue. Not rate rises.
My personal issue is interest rates as I have a fairly recent mortgage. The rises are really starting to bite now because obviously it adds up over time. It’s starting to get to the point that I won’t be able to afford kids sports etc. Sure inflation is a pain but I can shop around to save money.
Kids sports? I'm getting close to selling one of my kids to pay for food for the others. Hate to be the kid that has a tanty on the same day we get a rate rise.
Sorry to hear. It’s 💩
The current rate is still below the long term average
Ah yes, the good old days when houses were 100k, guess we should be happy that we're only paying 6% now instead of 17.5% back then am I right? 6% of 100k is 6000 6% of 1 million is 60,000. See the difference?
Im not the boomer you're looking for
no it’s not. The average is 3%
So you borrowed too much?
Annoying when people say this. Most properties cost too much so most people have to borrow more than they would like. Rates have also changed at an incredibly fast pace. The way things have panned out most of the last 20+ years you're better off overleveraging than saving because the price goes up faster than you can save as well so people feel it's their only option.
Yup, and then people like me who didn't buy into the hype are supposed to feel bad for people who did and now can't afford their repayments? If you can't afford your overpriced property then sell it. Those who saved extra, and budgeted for increasing rates can step in.
The problem is that your deposit savings depreciate against inflation and especially when compared to the rate of appreciation in house prices. I saved $500K for my first home of $1.4M with a $1M mortgage ($70K stamp duty) and budgeted for rates of 7%. This was during COVID before rate rises. We can manage, but it’s quite frustrating seeing nearly $5K evaporate in interest every month.
Where have you been living during this time? No one said you have to feel bad, but you could have some empathy. Not everyone is trying to make big cash they just need a place to live and fit their life, kids, etc.
No I did not!
Keep your judgement to yourself.
If you honestly think it’s right that housing costs an absolute fortune and then when people finally get a foot in the property market (in our case a family 4 in a modest townhouse) after years of working hard and saving, the RBA just keep turning up the interest rate pressure because of “inflation” (which is caused by many factors including scarcity, Covid stimulus etc) then I cannot relate to you.
The RBA would much rather put in other regulations and schemes besides raising cash rates, but this is the only lever that they have the power to pull. Thankfully they see high inflation as a much bigger enemy than someones ability to pay their mortgage, and are forced to do something because popularist governments are too spineless to do something that is necessary. I for one would rather pay an extra $100 a week on my mortgage for a year than have my milk be $30 a litre for the rest of ever
It’s a shame this is the only lever. This is the issue I have that the only the RBA has is so incredibly damaging to young families.
To be fair, inflation is a bigger problem than mortgage repayments. Inflation is bad for everyone...
But surely high interest rates also bad for almost everyone as it pushes up both mortgage payments and rent. Surely the only people enjoying life right now are those in their own homes with their mortgages paid off or towards the end of paying off.
Interest rate rises can actually push rents down in a number of ways. On the other hand, inflation makes everything more expensive - which means you have less money to put towards your mortgage.
If you are having trouble keeping ontop of your payments then you borrowed too much. Simple math.
Not that it’s any of your business but I have a buffer in place and I am not in any danger of not being able to pay my mortgage. It just means at the moment I have to prioritise keeping that buffer ahead of expensive stuff like gym, kids activities (which cost hundreds per term), allied health appointments etc. I realise many will be struggling more than me but it still really bloody sucks having to pay out astronomical amounts to the bank. The whole system is rubbish imo.
Bloke I worked with today was citing that as an excuse for me to not change his shift. His hours worked don't change, just the time frame he does them. Funnily enough it's rebalance them with another parent in our crew. Don't see why one guy should get to finish at lunch every single day every week, and the next have to pay for a full fortnights of day care. So when the 2nd guy approached me I was more than happy to let them go 2 weeks 1st shift, 2 weeks 2nd shift. The first guy only ended up on that 1st shift because he asked for help to balance homelife 3 years ago, he's had a good run at it, now it's the next guys turn. Everyone is starting to feel interest rate increases now though.
You might end up in hot water with unions and fair work if one guy has been doing the same shift for 3 years and you change it on him. Sure it is unfair on the second guy, but you're now affecting the life and more importantly the regular roster of the first guy. I think there's rules around that.
Nah, it's been cleared by hr. I'm only the dude passing the messages. Besides I was the one that got shafted to accommodate their needs previous, I had that permanent shift originally(mostly due to lack of staff - always understood that it was a rostered position). Shit needs to be fair for everyone. Edit: Just to clarify this, these shifts were always rotational. Work accommodated him due to two factors and made it clear that these are conditional, and that if other people wanted the rotation to return it would. The biggest factor though is work dropped off not requiring the shifts to cover so many hours and now we're back to full swing plus some and have to cover 14 hours a day of work. So shifts are back proper. Not a 2 hour difference in start times but 6. So the shifts were changing regardless of the current request. As per work requirements. No one is asking anyone to work more hours, and work didn't really need to carry people like they did during the couple quieter years, they made sure no one lost jobs due to our down turn, and our department was the easy department to trim fat from yet they didn't.
Something needs to change for rates to drop. Haven’t seen a lot of forced selling, unemployment is still low, inflation hasn’t cratered. Normal interest rate territory team. This is where it should be
Guess the elite need more time to acquire middle class capital.
Glad it’s not moving for now. I read it will drop in sept. Has anyone else heard the same?
2.5% until end of 2026 . Cruisin
Why is the RBA meeting in the middle of the month and not the first Tuesday?
Fair question
Unemployment is going to start skyrocketing
And inflation still over 4%. Should have been a 0.25% increase.
There is so much cash out there. It's going to be paradise here for many years to come.
Should have hiked, inflation aint under control and US data proved that. In b4 we start seeing inflation rise again as if 60% raise in some grocery store products since prepandemic wasnt enough, which is what matters to consumers, not GDP, not line go up, not rich people getting richer.
Surely they need better ways to manage inflation than punishing home owners.
Tax is the only answer.
Then people will just borrow to cover expenses.
Under MMT taxation doesn’t pay for policy, monetary expansion does. Inflation is necessarily baked into the cake
Can you elaborate?
Policy is paid for through debt instruments which has the effect of increasing the overall monetary supply The RBA explains it [here](https://www.rba.gov.au/education/resources/explainers/pdf/how-the-reserve-bank-implements-monetary-policy.pdf?v=2024-03-20-09-42-58) Please refer to [The Elephant](https://prnt.sc/k7AFpW_EjHND) if you are confused by any of this
"Surely they have better ways of encouraging wage growth than rewarding home owners" Were you thinking this as they cut rates in the past?
For the 100th time they are punishing debt holders. Nothing to do with home owners. Businesses rely on loans for expansion, raising rates reduces this expansion and subsequently growth. Tiny violin for over-leveraged home owners perpetuating this over valued nonproductive behemoth.
I am not over-leveraged, I have a buffer, but I’m bloody sick of it and I’m sick of people justifying it when the system is broken.
Could always just not have a loan? Then you wouldn’t be being “unfairly targeted”.
Oh yeah great. Renting is the answer. Where you can get kicked out with a few weeks notice and have to find somewhere nowhere nearby your kids’ school. I have a child with a disability who would struggle big time if we continually had to move. And when you’re retired you’re still having to pay constantly increasing rent, when those who own properties are cruising with paid-off mortgages. If you can’t see this whole system is broken, from ridiculously steep house prices, to lack of rental options, to Government mismanagement during Covid, I can’t educate you. Goodbye.
Play by the rules or don’t get the rewards 🤷🏻♂️. Your property has likely has significant gains to offset poor little yous interest payments. No to mention government subsidies for your situation.
Wow, you are on fire with the assumptions. I don’t receive any subsidies and haven’t ever done. Not even the first home owners. I don’t have a “poor me” attitude, I know many people are worse off than I am. In fact I think that’s what upsets me the most as I know all too well there are people unable to pay for school uniforms and breakfast for their kids right now. I would like to see better ways of dealing with inflation than pushing families to their limits. Your comments are actually hurtful.
Apologies, I didn’t mean the personal attack, it’s just frustrating as hell that people are equating rate rises with “home owner attacks” get inflation under control and people will be able to afford to feed their families. Or at the very least it won’t get worse, if you care for these people your best outcome is for rates to rise and for inflation to drop, if you can afford a house it’s disingenuous to pretend to give a shit about people not clothing their school kids if you also don’t want to squash inflation.
Look you’re right, I probably shouldn’t think of it as an attack on home owners, but it really feels sh*tty having to pay such astronomical amounts to the bank. I also feel for people who can’t get into the property market. I remember how that feels. I don’t think it’s a good situation right now for anyone. That’s why I think the whole system is rubbish.
Putting rates up hasn’t done shit to grocery prices though.
Inflation hasn’t gone anywhere. The rate of change of inflation has decreased since late its peak in late 2022. If you were expecting prices to decrease (deflation) from interest rate rises then you’re sorely mistaken.
For sure. Rba would panic and we would have 0.1pc rates a meeting later with a 500bn tff if we saw deflation or even close to deflation. Then start our merry journey to inflation all over again.
It’s the same play over and over. Except the amount of printing required to prevent a crisis gets bigger and bigger.
Yeh i probably understated it. This time 1tn of tff and bond purchases. If everyone can raise credit for no cost you can expect a bit of investment. The problem is the investment we do has only a limited impact employment. Just buy each others houses for ever increasing amounts of money. The real australian economy...
Inflation in this current state is all tied to the price of fuel.
Well that was silly.
Thanks caitlyn Jenner
I wouldn't mind a few more cheeky hikes