Westpac are offering to take my existing variable loan (5.46%) and fix whatever amount I want at 4.99%. I realise I may be able to get a basis point or 2 lower eleswhere, but then there would the hassle of new application processes and fees. In the macro view, I am keen on fixing with my current provider.
I think that you will find Westpac following the CBA down very shortly. Maybe that won't mean much to you if you don't have a large loan. IMHO every little but helps.
Any expressed market opinion is my own and is not to be taken as financial advice
Similarly, just fixed a portion for 3 years at 4.83%(IO in arrears) and another portion for 5 years at 5.35% (IO in advance). It may not quite be the bottom of the cycle, although my expectation is that 5-year rates will not go down further because the long end of the yield curve is rocketing up internationally.
I don't believe that, on average, you will do better on rates by fixing, but I now have certainty about a big portion of my interest expenses for the next 3-5 years which gives me more flexibility about what to do with my other assets and liabilities. That's worth money too.
Sorry, don't mean to derail the thread. Just looked at BBSW (http://www.afma.com.au/data/bbsw.html) and it looks like either term premia is returning to credit markets, or there is a flight to safety going on. Either way, it might be a good idea to fix.
Sorry, don't mean to derail the thread. Just looked at BBSW (http://www.afma.com.au/data/bbsw.html) and it looks like either term premia is returning to credit markets, or there is a flight to safety going on. Either way, it might be a good idea to fix.
Yeah. I've been watching that as well. At the 5-year term, the spread between 5-year swaps and typical 5-year fixed rates seems to have contracted by about 30bp since April, suggesting to me that the next move is up for the 5-year fixed.
On the other hand it looks as if 3-year fixed might have one more leg down with a lot of providers.
But mostly I look at 10-year US treasuries. They gyrate a lot, but they are definitely on the up. That has to feed through to term funding costs.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Yeah. I've been watching that as well. At the 5-year term, the spread between 5-year swaps and typical 5-year fixed rates seems to have contracted by about 30bp since April, suggesting to me that the next move is up for the 5-year fixed.
On the other hand it looks as if 3-year fixed might have one more leg down with a lot of providers.
I was looking today at houses for sale/rent in Armidale. It has a lot going for it and it has NBN. Saw a few places that were positively geared at 90%LVR (not sure what the vacancy rate is like there though, guess it might be seasonal with UNE students vacating in October). Anyway, looked at 3Y fixed, they cheapest all seem about 170-200bps over swap. I didn't think their margins could go much lower than that but you could be right.
Quote:
But mostly I look at 10-year US treasuries. They gyrate a lot, but they are definitely on the up. That has to feed through to term funding costs.
I was looking today at houses for sale/rent in Armidale. It has a lot going for it and it has NBN. Saw a few places that were positively geared at 90%LVR (not sure what the vacancy rate is like there though, guess it might be seasonal with UNE students vacating in October). Anyway, looked at 3Y fixed, they cheapest all seem about 170-200bps over swap. I didn't think their margins could go much lower than that but you could be right.
Go out into the boonies and you will find a lot of places sporting very high yields. Rentals are typically tight and prices low, but people are loth to invest because the risk of having values plummet because demographics turn on you are high.
If you really want to take the risk, I like Toowoomba. It has a number of industries supporting it. Mind you, Armidale is pretty good with all that wheat, wool and education it has going for it.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Looks like Peter was on the money, CBA now at 4.79% for one year, 4.89% for two and stable at 4.99% for three. I locked in one of my loans for 3 years last month, so not kicking myself yet :-)
Go out into the boonies and you will find a lot of places sporting very high yields.
Yep, pretty much been the case for as long as I can remember.
Quote:
Rentals are typically tight and prices low, but people are loth to invest because the risk of having values plummet because demographics turn on you are high.
My position is that the NBN will have demographics turn toward me, but all positions are opinions.
Quote:
If you really want to take the risk, I like Toowoomba. It has a number of industries supporting it. Mind you, Armidale is pretty good with all that wheat, wool and education it has going for it.
Whenever I hear the name Toowoomba I am reminded of a song by a band named 'The Pineapples from the Dawn of Time' called 'Toowoomba City'. Basically the lyrics go along the lines of, 'Toowoomba City, no way, Toowoomba City, never again,Toowoomba City, it's hell on earth' etc. But I digress. Checking the NBN rollout map (http://www.nbnco.com.au/when-do-i-get-it/rollout-map.html?icid=pub:hme:rollout:hro:img) it would appear that parts of Toowoomba already have fibre available, so you might be on to something there.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy
