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Interest rate rises good for property; Why rates rising may push prices up rather than down.
Topic Started: 11 Jan 2017, 10:17 AM (1,868 Views)
Chris
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Simon_S
11 Jan 2017, 11:46 AM
If Interest rates were good for Property then lets put them all the way up to 10%.....

Should be even better.....
If things really head south I think they will go higher than that
silverman47
11 Jan 2017, 05:03 PM
If people are employed, and the banks flood the real estate market and wider economy with cash in new loans, wages, goods and the price of pretty much everything has to rise. Inflation saves the day as it always does.

I was reading another post something like "reasons why the property market will crash in australia" in this forum, its on the main page. The post started in 2011 !!! and its 50 something pages long ! so at what point, are you guys going to say, look maybe ive been wrong about the last 5 - 6 years? You have to cut your losses at some point.
Yep, inflation saved the in the late eighties and it explains why the world went to record low IRs as we ride the GFC.

I admire your willingness to run with a difficult debate topic
Edited by Chris, 11 Jan 2017, 05:24 PM.
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silverman47
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Chris
11 Jan 2017, 05:22 PM
If things really head south I think they will go higher than that

Yep, inflation saved the in the late eighties and it explains why the world went to record low IRs as we ride the GFC.

I admire your willingness to run with a difficult debate topic



Banks will not willingly bankrupt themselves with 10%+ interest rates, thats what your talking about, every bank in australia being insolvent. NOT GOING TO HAPPEN.
Edited by silverman47, 11 Jan 2017, 05:53 PM.
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Chris
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silverman47
11 Jan 2017, 05:53 PM


Banks will not willingly bankrupt themselves with 10%+ interest rates, thats what your talking about, every bank in australia being insolvent. NOT GOING TO HAPPEN.
So if RBA rise to 17% as they did in 1990 recession we had to have the big four will fight this and remain under 10%?

Are you on the same planet?
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silverman47
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Chris
11 Jan 2017, 05:56 PM
So if RBA rise to 17% as they did in 1990 recession we had to have the big four will fight this and remain under 10%?

Are you on the same planet?
Do you understand the implications if the RBA raises rates to 17%, with these prices? They are not out to collapse the market, at no point in time.

The RBA / Government have a responsibility to maintain stability, full employment etc. One of the main drivers for employment, if not the main driver is the housing market. They need inflation, deficit spending, growth etc.

Edited by silverman47, 11 Jan 2017, 06:08 PM.
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Chris
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silverman47
11 Jan 2017, 06:07 PM
Do you understand the implications if the RBA raises rates to 17%, with these prices? They are not out to collapse the market, at no point in time.

The RBA / Government have a responsibility to maintain stability, full employment etc. One of the main drivers for employment, if not the main driver is the housing market. They need inflation, deficit spending, growth etc.
Do you understand basic economics? Once they start to rise compounding inflation makes them almost impossible to stop, RBA and Gov had no choice in the 90's and given they are happy to let this ship sail into ice bergs they may not have a choice now.
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Rufus
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silverman47
11 Jan 2017, 06:07 PM
Do you understand the implications if the RBA raises rates to 17%, with these prices? They are not out to collapse the market, at no point in time.

The RBA / Government have a responsibility to maintain stability, full employment etc. One of the main drivers for employment, if not the main driver is the housing market. They need inflation, deficit spending, growth etc.
No they don't understand, they just have this idea that something bad is going to happen and it will happen when they buy a house. In fact they will be disappointed if something bad doesn't happen to them.

They actually believe that interest rates of 17% are possible right now.

Give up before they bring you down to their level, where the will beat you senseless with stupidity.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Chris
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Rufus
11 Jan 2017, 06:46 PM
No they don't understand, they just have this idea that something bad is going to happen and it will happen when they buy a house. In fact they will be disappointed if something bad doesn't happen to them.

They actually believe that interest rates of 17% are possible right now.

Give up before they bring you down to their level, where the will beat you senseless with stupidity.
Is it your position that interest rates will NEVER be 17% or above in Australia post 1990?

And yes, I think it has finally dawned on you there is an entire generation that don't want to be stuck with your debt burden when the music stops.
Edited by Chris, 11 Jan 2017, 07:18 PM.
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silverman47
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Rufus
11 Jan 2017, 06:46 PM
No they don't understand, they just have this idea that something bad is going to happen and it will happen when they buy a house. In fact they will be disappointed if something bad doesn't happen to them.

They actually believe that interest rates of 17% are possible right now.

Give up before they bring you down to their level, where the will beat you senseless with stupidity.
I think your right mate.

Try to help people only so much you can do.
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Trollie
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Chris
11 Jan 2017, 07:16 PM
when the music stops.
It stopped, but the game wasn't being played the way you thought.
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herbie
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I've seen house prices go up in a recession - A LOT - As in WAY more than any of tha penny ante shit wot's gettin' cried about here now - Man, double in 5 yrs! ('N in Shitvegas where I am!!! - LOL) Now THOSE were tha days! ... :)

But it remains my impression (in hindsight), that woz because interest rates fell rather than went up.

'Course, who knows, maybe Silverman's right 'n house prices just pretty much go up these days regardless of wot interest rates do? (By 'n large - 'Cause that's wot 'the economy' needs house prices ta do.)

Anyways, 'spect a comment I read here a few yrs back (by b_b if I recall correct - 'n I surely reckons I do - 'Cause it woz a comment that burned his handle inta me head as one of tha smart dude's here who I'd be sensible ta listen too ... As opposed ta lotsa other dumb f***s here [including meself]), is that wot will most likely eventually turn things 'round (as in give bears a bit of a break?) is for tha numptie builders ta overbuild.
Edited by herbie, 11 Jan 2017, 07:55 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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