Interest rates just gone up.

[smac]

Sorry boon, wasn't targetting my last comment specifically at you - it was more my unrequested opinion on the topic.

The research I did for a credit union a couple of years ago indicated that a 3 year fixed rate, followed by a 3 year fixed rate (and so on, for the life of a loan) would finish up paying less interest overall than someone who had a variable rate loan.

Also (IMHO) those people who fix their loans when some bloke on the TV tells them to are WAY TOO LATE to take action.

[TroyGFC]

Simple fact.
When Interest rates go up it is meant to stop Inflation going up.
Politicians will constantly remind you of this.

Simple for pollies though, vote on a new pay rise!!

[Punk Rooster]

The only people it will have an adverse effect on, are those who've put themselves i debt to the eyeballs!
There are couples out there who think it's compulsory to purchase a brand new car each, with their new home, new plasma tv etc....

[MW]

The only people it will have an adverse effect on, are those who've put themselves i debt to the eyeballs!
There are couples out there who think it's compulsory to purchase a brand new car each, with their new home, new plasma tv etc....

You are looking at min. $300,000+ for a first home these days so you have no choice to put yourselves in "debt to the eyeballs!".

I agree that 2 x new cars + plasma screen is not necessary however a modest loan is $250,000+ nowadays without that

[another grub]

doesnt affect me..... the only way I will get a plazma is if one falls of a truck or Mrs Grub carks it!!!

[PhilG]

..

[MW]

Current housing prices are just as damaging to buyers than the 18% interest rate anyway...add petrol prices to that and we are clearly worse off than we were under a labor gov.

[another grub]

who you voting for next election.... Im with Beefy Beazley

[PhilG]

..

[MW]

Labor for sure....under Liberal the rich get richer is all

[mighty_tiger_79]

Just tunes into the tv and it said interest rates now 6.25% up about a quater of a %. Well cheers Little Johnny Howard you liar for the extra $27 through your crappy IR rules you little weasle!!! Hope when your laying down to rest someone pisses on your grave!!
End of my soapbox spill.

my question is how does the IR laws affect the interest rates??

[Punk Rooster]

The only people it will have an adverse effect on, are those who've put themselves i debt to the eyeballs!
There are couples out there who think it's compulsory to purchase a brand new car each, with their new home, new plasma tv etc....

You are looking at min. $300,000+ for a first home these days so you have no choice to put yourselves in "debt to the eyeballs!".

I agree that 2 x new cars + plasma screen is not necessary however a modest loan is $250,000+ nowadays without that

I would think that a couple earning a 80K between them would be able to afford a home loan of 300K- it's when you add in the 2 x new cars, new furniture throughout the house, every mod con + maxed out credit cards on top of that, the debt becomes a burden erring on the side of disaster.

[TroyGFC]

Its time for Labour to get this country back on track before more manufactering jobs suffer.

As for the IR its just another crap thing from the libs, along with free trade agreements which is turning this great country into an American clone. Fair enuff 17% was alot under Keating but a week wage was better and most good cheaper and medicare much better. Howard is stuffing up this country which the workers tried so hard to build.

[Dutchy]

Its time for Labour to get this country back on track before more manufactering jobs suffer.

As for the IR its just another crap thing from the libs, along with free trade agreements which is turning this great country into an American clone. Fair enuff 17% was alot under Keating but a week wage was better and most good cheaper and medicare much better. Howard is stuffing up this country which the workers tried so hard to build.

in your opinion

[Dutchy]

The only people it will have an adverse effect on, are those who've put themselves i debt to the eyeballs!
There are couples out there who think it's compulsory to purchase a brand new car each, with their new home, new plasma tv etc....

You are looking at min. $300,000+ for a first home these days so you have no choice to put yourselves in "debt to the eyeballs!".

I agree that 2 x new cars + plasma screen is not necessary however a modest loan is $250,000+ nowadays without that

I would think that a couple earning a 80K between them would be able to afford a home loan of 300K- it's when you add in the 2 x new cars, new furniture throughout the house, every mod con + maxed out credit cards on top of that, the debt becomes a burden erring on the side of disaster.

well said Punk...at the end of the day we all have choices...easy option is to blame others

[ORDoubleBlues]

Just tunes into the tv and it said interest rates now 6.25% up about a quater of a %. Well cheers Little Johnny Howard you liar for the extra $27 through your crappy IR rules you little weasle!!! Hope when your laying down to rest someone pisses on your grave!!
End of my soapbox spill.

No one should be surprised. They have lured everyone into buying property and there is only one thing that is going to happen after that.

[Wedgie]

I would think that a couple earning a 80K between them would be able to afford a home loan of 300K- it's when you add in the 2 x new cars, new furniture throughout the house, every mod con + maxed out credit cards on top of that, the debt becomes a burden erring on the side of disaster.

Agreed! The Missus and I are both on very nice wages having been with the same company for 18 years, we got a 95k loan about 7 years ago to buy our house at Happy Valley. Not a mansion, just your typical 3 bedroom house on a nice block, in a nice area close to the shops and transport with ducted air/con, etc.
Even on our current wages I wouldn't even consider getting a loan for more than 200k, I'd rent.
Stupid people stretch themselves to follow "the Great Australian dream" when they'd be better off renting.
A couple stretched by their mortgage only needs a gas heater to go, termites to invade or their car to blow an engine and they're stuffed.
We were lucky in getting a house when they were low (didn't have to be Einstein to work out they were going up big time) but even at the great price we got our house if I had my time again I'd seriously consider renting.

Each interest rise puts our mortgage up about $10 per fortnight. Pfft, one less pack of smokes or 2 less pints at the pub.

[Booney]

In the same boat Wedgie,my mortgage is well under the $100k mark,thus a rise does very little to my week to week living.Im more interested in the next time I go to upgrade my house (the one I am in will service my growing (2) kids for a few years yet,but it will not be the last house I buy) what sort of wage will I be earning? What will the rate be at? How much will I be able to borrow? (With out over borrowing,of course)

I too agree that too many people place an inflated amount of importance on home ownership,young newly weds and couples the most likely to fall into this group.As Punky said,2 new cars,a surround sound system,it all adds up,then your monthly repayments are such that you can only live on credit,making the hole even deeper that you have dug for yourself.

[PhilG]

..

[Punk Rooster]

We were lucky in getting a house when they were low (didn't have to be Einstein to work out they were going up big time) but even at the great price we got our house if I had my time again I'd seriously consider renting.

I weighed up my situation 6 months ago- I could either get a mortgage for a 2 bedroom unit @ $300+/week, or keep renting my 2 bedroom house, with lounge, dining etc on a large block where I keep a dog & 2 cars for $230 a week- I still have a landlord....