Possible record low interest rate drop tmrw.

TheEnd said:
SilverPete said:
TheEnd said:
...
Surely it cant go on for much longer.

Can it??? :o
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Oh yes it can!
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O.k SilverPete, Exactly how will they keep the bubble inflated???
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How? Just like someone addicted to crack... they'll do anything for the next hit, regardless of the longer term consequences to themselves or their families.
 
Lol this makes me giggle.
"Surely it can't go on for much longer!"
How often have I heard crap like that thrown around the PM sphere!
People have been saying things like that for years and years, what a heavy opportunity cost to pay!
The answer is a lot longer than you/people can anticipate! = you can't predict it.

And if you think the Sydney RE market will collapse in the next few months, you might be in for a surprise! With interest drops on the horizon, more and more will be pilling on RE.
Sure this can't go on forever, especially at this rate (3% in March alone!), but in such large markets, it takes time for things to slow down.
With room for interest rates to drop, it doesn't look too likely in the immediate future, unless we experience sudden high unemployment. The growth slowing also does not equal to prices dropping. There are just so many people waiting in the sidelines for this to happen.
It's a very complex market with thousands of factors and predicting is a loosing proposition.
 
TheEnd said:
Well I cant wait until next month....Its about 95% chance that the RBA are going to lower rates by .25% again.

Cant wait to see the roof get blown off in the Sydney RE bubble over the rest of 2015.

Surely it cant go on for much longer.

Can it??? :o
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Lol sounds like someone who missed out the RE wagon.
RE will not collapse as there's too much cash sitting on the sideline. With the current rate environment, investors are getting better yield from rentals than deposits. Until supply out strips supply, there won't be a collapse in the near term.
 
Until rising unemployment and stagnating wage growth impacts mortgage repayments... could be soon enough.
 
smk762 said:
Until rising unemployment and stagnating wage growth impacts mortgage repayments... could be soon enough.
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Which will hit the outlying, less desirable suburbs and regional centres first and more severely. Prices around major areas of employment, around hotspots for population pressure, and where global money likes to invest, may experience some stagnation, but serious price drops should be rare.
 
All depends on how quickly the dam breaks, and if the leakage is too strong to patch up. Too many patch jobs reduce structural integrity eventually.
The death of FIFO is having an impact in the west, though it can be managed with retraining if alternative productive industry is available to grow.
The financial services sector of Sydney will last as long as the sharemarket continues, but if a house of cards grows too high on weak foundations, it will crumble too, and have a cascading effect.
There's always a fish with a fatter wallet to buy up post crash, but rental returns rely on renter income. I believe infinite growth in this sector is under threat by increasing relative income disparity.
 
RetardedMonkey said:
TheEnd said:
The main concern is about Sydney's RE market turning into a bubble.
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This is the main reason they haven't dropped rates further this year.

ASX also shot up this morning, anticipating a rate drop.

Sportsbet paying $1.75 for 0.25% drop (was $1.50) and $2.00 for staying the same (was $2.50).

Will be an interesting decision
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I'm going to put $50 or maybe even $100 on my first ever Sportsbet when next month comes around.

Should make some extra cash out of this almost garunteed bet???
 
O.k so its been nearly a month since Glenn Stevens left rates at 2.25%.

Does anyone know when this months (May) decision is being made?

I think I just read on another forum that its happening tomorrow???
 
TheEnd said:
O.k so its been nearly a month since Glenn Stevens left rates at 2.25%.

Does anyone know when this months (May) decision is being made?

I think I just read on another forum that its happening tomorrow???
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The Reserve Bank Board always meets on the first Tuesday of the month.

If you forget when the next first Tuesday of the month will be, you can look it up here: http://www.rba.gov.au/schedules-events/calendar-2015.html
 
whinfell said:
TheEnd said:
O.k so its been nearly a month since Glenn Stevens left rates at 2.25%.

Does anyone know when this months (May) decision is being made?

I think I just read on another forum that its happening tomorrow???
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The Reserve Bank Board always meets on the first Tuesday of the month.

If you forget when the next first Tuesday of the month will be, you can look it up here: http://www.rba.gov.au/schedules-events/calendar-2015.html
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O.k thanks I SERIOUSLY cannot wait for this next decision.......BIG things happening in the Oz economy and RE market right now!!! :|

I'm wrapped its tomorrow i thought i had to wait until the 8th of MAy.
 
Chubbsng said:
A lot of suggestion that it will be cut tomorrow. Hope so.... Get on board the R E train!
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Looking a lot like a mania at the moment. Auctions are quite mad.
 
havo said:
no change
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Ye I reckon there may be no change to interest rates tmrw as local data has been showing some small improvements since last month.

We may have to wait another month for a cut???
 
QUALITATIVE
The RBA has been surprisingly vocal about overheating real estate markets, but also voiced its concerns about the high Aussie dollar.

With the US Federal Reserve (System) openly hinting at an interest rate 'lift-off' mid-2015, the RBA could be relieved of 'the rock' vs. 'the hard case' merely by waiting it out.

The Australian Federal Budget, due for release on May 12th, depending on how debt and equity markets react, may also factor into their considerations.

The RBA has limited policy tools at their disposal (short of extraordinary measures, such as currency revaluation), with AUD Cash Rate already at historic lows.

QUANTITATIVE

The last interest rate drop was in February 2015, in Q1 of 2015.

Since 2008, the RBA has raised or lowered interest rates in May on three occasions:
2010 (+0.25)
2012 (-0.50)
2013 (-0.25)

RBA has left rates unchanged in May on four occasions:
2008
2009
2011
2014

Data Source: http://www.rba.gov.au/statistics/cash-rate/

Roswell's Take: Expecting NO CHANGE to Australian Dollar Cash Rate on 4th of May by the Reserve Bank of Australia
 
ASX RBA rate tracker has a 76% chance of a rate cut tomorrow http://www.asx.com.au/prices/targetratetracker.htm not that it really means jack

I really have no idea. Given the poor data coming out of the US over the past few weeks, I can't see how a 25 basis point cut is really going to push the AUD down much further until the data improves if it does improve coming out of the US to indicate the Fed will raise rates. I'm still putting Forex short-term trades on either side of the AUD/USD
 
Chubbsng said:
A lot of suggestion that it will be cut tomorrow. Hope so.... Get on board the R E train!
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Keaton.+The+General.+Bridge+2.png
 
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