I think 1/3 the population have mortgages, 1/3 have savings, and 1/3 have SFA. So we pander to a minority! My take now is the AUD will go down a bit, PM's will go up slightly, the banks will drop savings accounts to bugger all, and we'll go on pontificating.
Yes how lucky am I!!!! I'm 24, homeloan gets cheaper, only investment is 20k in super, so not really worried about getting undermined by lower rates. But I do feel sorry for people with bigger investments and people who have to live off their savings at this point in time, but doesnt lower rates also put an upward pressure on house prices? Isn't it ment to promote growth by making lending cheaper for businesses? What other good and bad does lowering interest rates do?
Virtually no room to move now. And supposedly all is well with the Australian banks and financial system.... Artificially moving rates is always just robbing Peter to pay Paul. There is no net gain or loss. Some win at the expense of others.
I am no expert in the property market, but saw that whenver there is an interest rate drop, the price of property would go higher, so it kind of offset the drop! Not good for new entrants!
But the payments stay the same! And we all know having affordable payments is the most important thing when considering a 30 year mortgage. /sarcasm
^ Not only that it also reduces the value of the Aussie dollar so anything the pensioner buys that is imported now costs more.
more than maybe, when interest rates go down = mortgage cheaper + rent stays the same = more attractive for first home buyers and investors.
