Browse Forums Home Finance Re: Interest rates above 10%? 13Feb 20, 2008 11:50 am Peter Clarkson - AusDesign Australia www.ausdesign.com.au This information is intended to provide general information only. It does not purport to be a comprehensive advice. Re: Interest rates above 10%? 14Apr 11, 2008 9:33 pm At the rate the increases are going, it'll be well over 10% by the end of this year! I got my statement this week and there are three rises in just as many months, increasing a total of 0.8% - the last rise was 0.35% It will probably mean that I'll have to wait a few more years before I can start seriously considering doing our KDR, and by then, hopefully property prices will go up again so we have more equity to re-borrow against. Re: Interest rates above 10%? 15Apr 11, 2008 9:48 pm installation inspector At the rate the increases are going, it'll be well over 10% by the end of this year! I got my statement this week and there are three rises in just as many months, increasing a total of 0.8% - the last rise was 0.35% It will probably mean that I'll have to wait a few more years before I can start seriously considering doing our KDR, and by then, hopefully property prices will go up again so we have more equity to re-borrow against. There is no way property prices will go up, for a very long time. Australian house prices are some of the most inflated in the world. These prices are unsustainable. You can see that, by the mere fact that the majority of our population can no longer afford to buy a house or is suffering mortgage stress. Just wait & see the increase in loan defaults. Twenty years ago it took 5 times (sorry 2 times)the average annual salary to buy a house. It's now 10 times that . Absolutely crazy. I feel sad for our children, if a major correction doesn't happen in the next 2 to 3 years. Re: Interest rates above 10%? 16Apr 11, 2008 11:11 pm Quote: ausdesign Posted: Wed Feb 20, 2008 12:50 pm Post subject: -------------------------------------------------------------------------------- I'll be a 'party pooper' & go for 12.5 to 13 by the end of 2010. s**t Paula Re: Interest rates above 10%? 17Apr 12, 2008 1:49 pm So is the traditional theory that "property prices double in value every 7-10 years" now also out the window? Re: Interest rates above 10%? 18Apr 12, 2008 1:58 pm radds Twenty years ago it took 5 times the average annual salary to buy a house. It's now 10 times that . Absolutely crazy. I feel sad for our children, if a major correction doesn't happen in the next 2 to 3 years. What would people consider an "average annual salary"? I'd say $50K would be average. Times that by 5 and you have $250K. You can still buy a house for $250K. A $500K house is a SERIOUS house, and generally not your entry level house. The problem is mortgage repayments. My dad reckons that it used to be (30+ years ago) that 30% of your take home pay should go towards mortgage payments - in a time where mostly the male worked and female was at home. Now I'm sure over 1/2 the time people are spending more than this - or 2 people have to work to pay it, as is the case for us. Ray. Second Time 'Round Re: Interest rates above 10%? 19Apr 12, 2008 2:27 pm First_Timer_Ray What would people consider an "average annual salary"? I'd say $50K would be average. Times that by 5 and you have $250K. You can still buy a house for $250K. A $500K house is a SERIOUS house, and generally not your entry level house. Not in Sydney! You'd be lucky to get a house under $350k - even in lower-priced suburbs. My 2-bedroom unit in a lower-priced suburb sold for $285k a few years ago. A $500k house in Sydney suburbs is probably around the average price. Do those "income VS property/mortgage value" figures change for different cities? As of next month, we will be spending about 3/4 of the house-hold after-tax income on our mortgage. Re: Interest rates above 10%? 20Apr 12, 2008 4:56 pm Sorry First_Timer_Ray
I should have stated that I'm talking about SYDNEY!!!! Fast-becoming the most unpleasant Australian city to live in.........property-wise & lifestyle-wise. Prices are beyond the average household, if you want to live in an average suburb. You can look at a minimum $500,000 (that's 1/2 a million !) for a 3 bedroom fibro job in a "reasonable" area. $250,000/$300,000 if you want to start out in a western Sydney suburb. 20 years ago we paid $100,000 for a 3 bed **** Edwardian squat in an affluent area in teh innerwest of Sydney- our loan was $30,000 at 17%. My husband was earning about $50,000. The same house today in teh same condition( if you can find one) , in the same area would sell for about $750,000. You work out the maths - horrendous!!! I would suggest to all - pay off your loan as fast as possible. Every extra cent that comes your way should be put towards your debt. Yes, you'll have to forego some "wants" but what would you prefer : to lose your home? I've seen it all before, back in '87. The economy is just like anything else - it works like a pendulum. We've had a great boom over the last few years. The pendulum is now starting to swing the other way - PAY OFF YOUR DEBTS ASAP. Have look at your house plans and you will probably find that brick articulation joint has been missed. Maximum allowable spacing is 6M or 5.5M for a wall with window… 17 20625 Hi everyone, Looking for some advise. We are about to build an above ground pool in our backyard. There is a private sewer line running under the pool at 1.6m… 0 11770 |