r/AusPropertyChat • u/Finance_With_Piyush Property Enthusiast • 3d ago
Buying & Selling Anyone else stressing about another potential RBA rate hike this November(03/11)?
With inflation still sticking around and the big banks dropping hints, it’s looking more and more likely that the Reserve Bank of Australia (RBA) might lift the cash rate again at their November meeting(03/11)
My budget is already stretched to the absolute limit with the current mortgage repayments, and another 0.25% increase is going to hurt.
- Are you guys fixing your rates now, or just riding it out?
- For those renting, have your landlords already started hinting at another increase?
- What’s the consensus here, do we think they’ll actually pull the trigger, or hold off?
Would love to hear how everyone else is preparing for this.
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u/Nose_Beers_85 2d ago
I feel they will hold until after Christmas, it would be a massive backlash if they go up again.
I’m one of the poor bastards that bought around the peak at the start of the year. I can probably manage some increases well enough by going into hibernation, but the double blow is that the value will have dropped about 10%. It’s just a villa in Perth, next door is up for sale and very similar to mine overall, offers from $60k less than what I paid.
If I had to sell, I’d take a massive hit. This place means nothing to me, but it feels I’m going to be stuck here for a long time.
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u/Puzzleheaded-Act-761 2d ago
Hey if it’s any consolation, you’re not going through this alone.
I pulled myself up by my bootstraps to get a deposit. At the time I had the choice of a 1 bedder in the inner west of Sydney or a house in regional NSW. I bought the house and chose to rent-vest, and everyone around me told me the house was a better use of my capital.
Basically have been ploughed in the arse by tax changes and the RBA. The market conditions won’t stay like this forever. But agree it sucks to be stuck. Just keep your head up.
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u/BringTheFingerBack 2d ago
Late last year was peak FOMO for sure. I was on here comparing it to the uk 2007 housing bubble and getting laughed out of the place. I fear the drop has only began.
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u/Thick_Alps3724 3d ago
This is why I brought 200k under my max borrowing power, I feel for the people who didn't but.
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u/Spirited_Shower_5817 2d ago
I also bought 100k under my max but still feeling the pressure as a FHB. Everything feels new and scary
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u/ztrayacnt 1d ago
😂😂 100k under your max? You may as well have just maxed out. You’re farked either way.
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u/Smooth_Yard_9813 2d ago
mine was 300k under
still doing ok , getting obvious it is becoming survival mode for everyone soon2
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u/Patient_Election7492 2d ago
People gotta have that flashy house otherwise people will think differently of you.
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u/WranglesTurtles 1d ago
Someone’s limit should already factor this in. You can’t rely on people not to choose the maximum.
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u/Thick_Alps3724 1d ago
The bank told me that is the case when I brought. But I'm not really going to go off the banks word so I did my own due diligence.
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u/WranglesTurtles 1d ago
Yeah, but the point is: not every does.
It’s subjective. Some would even consider a 200k buffer decent but still too tight. Obviously it depends on price of the property.
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u/Used-History-6454 2d ago
David Pocock was very vocal about this being a terrible way to try to bring down inflation, whatever he’s planning I hope it gets taken seriously and the government pulls other levers and finally gives mortgage holders some relief, because it is bloody ridiculous.
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u/Stunning-Fill-8982 2d ago
I agree it’s a blunt instrument, but has Pocock proposed an alternative?
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u/Used-History-6454 2d ago
He’s submitting the terms of reference for a senate enquiry to look into alternatives, because he’s knows what he doesn’t know, he’s not an economist or expert on this subject so he will ask the experts. That’s what I like about him, he listens to the opinions of people who actually know these things, and pushes for the answers. He doesn’t just shrug and accept the status quo, he knows it’s unfair.
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u/yanansawelder 1d ago
The issue with this is the alternatives will be what has already been proposed:
- Limiting number of properties people can own. (will directly reduce the cost of property/ rent - the main spending contributor)
- Reduction of tax breaks for specific legal entities like discretionary trusts. (will directly reduce the money that rich people spend)
- Increase of taxes for high income earners (10m +) (will directly reduce the money that rich people spend)
- Subsidies for electricity, child care, etc. (will reduce the money families spend on necessities)
- Stronger enforcement of price gouging laws from supermarkets. (will reduce the money families spend on necessities)
Can't really do much about cost of fuel as that's entirely on the US ceasing their war, so you need to focus on bringing down the other costs.
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u/jhooolay-red 4h ago
Gem!
But do you really really think that govt can tax the rich?
They have never. They never will.
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u/yanansawelder 1h ago
Oh of course not, which is why I think it's a waste of time/ political grandstanding lol
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u/ztrayacnt 23h ago
Yeah I can ask to get a house for free from the tax payer. Will I get it? Probably not, because it’s
a bloody stupid question.
Pocock can ask what he likes, it’s a free world to ask, but what change can he actually drive? Farken none.Pocock is nothing when it comes to global influences that are driving inflation in Australia.
Prove me wrong.
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u/jhooolay-red 4h ago
Sorry to burst your bubble of hope, but David though being extremely logical, he is not gonna be taken seriously. Labor is not gonna give him pleasure of being right. If he really wants to he heard, he should start advocating the exact opposite.
Nobody is gonna bother risk and try another methods to control inflation other then the oldest trick in the book.
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u/Used-History-6454 3h ago
Labor doesn't have a majority in the Senate, they need to work with the others including David to get their shit through. He has more bargaining power than you think.
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u/jhooolay-red 2h ago
I sincerley hope that what you are saying works.
Otherwise, I have no hopes, neither with labor, nor with libs.
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u/ztrayacnt 1d ago
David Pocock is a bloody big mouth.
What options did he provide as an alternative? Tax the gas giants more? That’s all he’s got.I can’t imagine he has a mortgage either.
Give me a god damn break farken.2
u/flashi007 1d ago
He’s a very intelligent and considered bloke. Former elite athlete. Clearly working for the best interests of the people.
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u/ztrayacnt 1d ago
Yes - athlete is the key word here. He don’t know shite about running an economy.
If he is working for the best interests for the people, he would be presenting his best ideas as alternatives to what he criticises. At the moment - he aint got NOTHIN’.
Prove me wrong cob.3
u/flashi007 1d ago
Do you think athletes are dumb? The bloke has a higher degree and you think he’s an idiot because he captained the wallabies? He’s well spoken and has very reasonable ideas. In this instance he’s looking to ask economists about other ways control inflation outside of rate rises. Isn’t that the best for all people? Finding out if there’s another way so families don’t continue to suffer
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u/ztrayacnt 1d ago
Plenty of athletes are thick as bricks, yes.
Yeah we can all ask questions, especially asking different people to do different things for us. Yeah, and, what will it solve? What power does he have? What influence does he have over the reserve bank? What influence does he have on the global energy markets?
Bloody nada all-round.
Nobody outside of the rugby world, let alone outside of Australia gives a shit what his background is, he is now a politician that can do bugger all "for the people".
Give me a farken break.
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u/Used-History-6454 1d ago
Jesus what crawled up your arse today? Instead of pretending he’s an expert on everything, he goes and finds the experts, asks the right questions, then pushes for those solutions, that’s what intelligent people do, instead of having huge egos pretending they know everything. I can write slower if you have trouble understanding, let me know.
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u/ztrayacnt 1d ago
So what has he actually done for society to date since he became a politician?
You’re still whinging about how "tough" things are at the moment, right?
He’s done utterly fark all except open his mouth pretending to be there for the people.Prove me wrong.
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u/flashi007 1d ago
I’ll just refuse to engage in a battle of wits against an unarmed comrade.
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u/ztrayacnt 22h ago
You can’t handle hearing the truth, which is backed up with facts.
You’re there with all your hopes and dreams that Pocock will be there bringing inflation down to 2%, and petrol prices back to a dollar a litre because he has the balls to ask "the hard questions". Lol.
Prove me wrong. What’s his track record? Farken zero.
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u/snowyoz 8h ago
Look, I'd concede he seems like a decent bloke, reasonably thoughtful and intelligent, asking some decent questions on the status quo.
But... I'd also agree, that asking questions doesn't put food on the table. I welcome his challenges to the norm, but yea, I haven't heard any solutions either. I get it sounds a bit like he's just "kumbayah" but I welcome the challenge.
I just hate when it's just manufactured outrage with no solutions.
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u/Comfortable_Owl_1448 7h ago
What was ridiculous was interest rates being near zero and people thinking that was normal. Rates are back to historically average levels now and punters who took out enormous mortgages thinking residential property prices could never fall are being caught with their pants down.
All you had to do was look back to the many other examples of property bubbles around the world to realise that this was no different.
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u/Used-History-6454 5h ago
Mortgages are not proportionally the same so why should we accept higher interest rates? I agree they shouldn’t be near zero but come on dude.
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u/Comfortable_Owl_1448 5h ago
It’s not about what you think is acceptable it’s driven by a whole global financial market. What you did is make a choice to buy an asset at an over inflated value and financed the purchase via a variable rate debt, apparently without realising there was a risk that the variable rate could increase in the future. You live and learn
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u/Used-History-6454 3h ago
Uhh sure man, you don't actually know me or what I did or didn't buy so nice assuming there.
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u/MerdeOnTheDanceFloor 3d ago
Unemployment is edging upwards.
I don’t think we’re going to get another rate hike as a result, but the scarier issue is - unemployment is edging upwards.
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u/dat_shibe 2d ago
Im no economist, but Im pretty sure higher unemployment would lead to lower interest rates. As bad as that sounds.
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u/MotionSmiith 2d ago
so what do you mean exactly ? when unemployment is high, they lower interest rates, and then the unemployed will rush back into the property markets and prop up prices ?
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u/dat_shibe 2d ago
Yeah when unemployment rises, spending reduces. Then inflation slows. Then cash rate reduces if it continues to slow
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u/Artistic_Attention_7 2d ago
Except inflation is being driven by other factors, household spending is down. So they can’t reduce rates as they otherwise would. Rates ain’t going down anytime soon (earliest late 2027 is currently forecast). The RBA will balance unemployment and inflation. It’s a poor blunt tool
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u/Finance_With_Piyush Property Enthusiast 3d ago
Either a rate hike or unemployment is causing worry for homeowners and even investors.
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u/MerdeOnTheDanceFloor 3d ago
I don’t think there’s much anyone can do. Offset as much as possible, refinance if you can, but realistically we’re tiny gnats being squished by the wheel of life, and we’re all lucky to be here.
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u/NoVax-Djocovid 2d ago
Dreaming. Just look around with what happened when the card surcharges got banned - random “platform fees” higher than the surcharge and small business jacking prices up left right and centre, again by more than the surcharge.
Another .25% is all but locked in
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u/Acrobatic-Word3463 2d ago
I went to my barber yesterday. They increased their prices by 5% after the ban…
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u/isafakethrowaway 2d ago
I’m a SME owner. I increased my prices in July as we are always affected by the wage increases due to our industry.
I started banging on doors of payment providers as soon as I read about the changes and it was Crickets. We wanted to make some changes to our engagements and it was so hard to get traction. A lot of gateways said hardly any SME were actually doing anything about it, in advance.
I think a lot of businesses didn’t pragmatically put up prices prior to the ban, because they just absorbed them and aren’t very savvy. I think the ban really slapped a lot of them in the head with reality and they’re piling on some of the recent costs. The straw that broke the camels back.
We’re overhauling our engagements and will walk away from our payment gateway due to their lack of real engagement/coming to the proverbial table to provide any negotiation or flexibility. I think a lot of gateways are being short sighted - a lot of businesses will go belly up with these changes.
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u/MotionSmiith 3d ago
unemployment, followed by inability to repay loans, followed by bank re-possession of property, and then forced-selling of property to recover debts ...... this is the beginning of market crash.
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u/Simple_Assistance_77 3d ago
Great then inflation runs rampant, RBA are cowards.
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u/twojawas 3d ago
Rents going up sucks though. We don’t need any more rate hikes or those struggling are going to go under.
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u/OverlordDownunder 2d ago
I'm not stressing but still worried, we just bought and bought about $100k less than our max, plus the missus is going up in pay but it does worry me as a sole trader, everytime they mention interest rates, the phone stops ringing for about 2 weeks.....
So it's more the stress of work drying up, lowering my income total than not having the income to pay the mortgage if it goes up (and my income stays as it is)
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u/SydneySandwich 2d ago
If rates are going to go up anyway I hope they just do it now so we can take heat out of the economy and have capacity to cut again. We would be having rates like our peers now if we didn't have the failed narrow path approach.
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u/icecreamsandwiches1 3d ago
I’m hoping for a hold but unfortunately seems unlikely.
Shop around for a better rate if you can. It’s easy to refinance.
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u/tranbo 3d ago edited 2d ago
https://www.asx.com.au/markets/trade-our-derivatives-market/futures-market/rba-rate-tracker
ASX has it at 27% today, though it will be likely lower tomorrow as unemployment figures, released today, a bit higher than RBA predicted.
Having said that though, they expect 1 more rate increase in May
EDIT: Typo
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u/Elegant-Operation990 2d ago
No, this is the futures market driven by the market’s expectation of the cash rate. The RBA doesn’t set this probability - the market does
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u/dieleicaq 1d ago
Croissant was $7.50 before card surcharge fees and now $9 Insane!!! This is all driving inflation even higher Entire circus should be fired
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u/Finance_With_Piyush Property Enthusiast 1d ago
I have also seen this happening in my nearby shopping area and couldn’t understand how come removal of 1-2% of card surcharge is causing product price rise by 20-30%.
This Math is not Mathing at all.2
u/eucalyptus-d 1d ago
When prices are high less buyers are there to support the business expenses. If you are in the lucky group still able to buy from outside you are just watching the water rising until you are also under. Most people have already given up on those expenses. E.g. I am now buying maximum couple of coffees per month and only if meeting someone. Down from daily coffee. ☕️
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u/snowyoz 8h ago
cos 1) no one rounds up by 1-2%, 2) small businesses have been needing to hike prices for a while now due to war/fuel prices, but were scared due to competition. the RBA just gave them the get out of jail free card to hike prices.
RBA's report on cc charges acknowledged but downplayed the inflation hike as "small but negligible" - but they knew what they were doing. the cc card surcharge ban was likely a secondary measure to take more heat off the economy (everyone said they were a one trick pony with interest rates).
BUT... this is me thinking they're playing 4D chess, it could be that they're just actually clueless.
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u/Candlelight_Fant4sia 1d ago
On top of that, banks are charging additional fees for credit cards that have rewards points, while they also removed insurances and other benefits. I cancelled my Altitude Platinum card as Westpac now charges an extra $75.
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u/Toasted_Barracuda 2d ago
I have started trimming expenses - relentless now feature twice a week on the menu. I have also repaired a hole in my pants pocket and am repairing more of my own clothes.
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u/steelnie 2d ago
Look at the bond markets. Expect two to four more rises before the end of 2027. Possibly more. And no drops for years. It’s not just inflation driving this. We are in for a world of hurt over the next few years.
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u/Anxious_Spirit4153 2d ago
Australian federal reserve said unemployment needed to be be somewhere between 4.5 and 5% to ease pressure on inflation. Based on the most recent data (4.7%) we are middle of the road for that range. Thats a potential 45k more layoffs before we reach 5%
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u/scifi4ever45 2d ago
I’ve been paying a mortgage for about 15 years. Don’t care any more. It comes up, then comes down, then up and down, then up…… you get the point. If I need to work more for a while, I will. This will pass. It always does.
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u/Error404-Unavailable 3d ago
I fixed mine in May at 5.44. I wish I fixed longer at 5.79. I really think this is only the beginning
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u/Finance_With_Piyush Property Enthusiast 3d ago
In the first half of the year, some people got it fixed in the range of 5.3 - 5.5%, I'm not seeing that level again in next 12-18 months I guess.
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u/Error404-Unavailable 3d ago
I don’t either, if not longer. If I thought about it at the time I would’ve fixed so it ended a while after the next election
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u/mrstarfish3 3d ago
You can’t have known. In Jan everyone was calling rate cuts. when Feb hit so did the Iran war, after that the rates just went straight up. I was someone who fixed the rates in Jan for 2 years at 5.29% and even then my bank was like “are you sure? The rates are coming down…”
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u/AlwaysAirCooled-1979 3d ago
I locked in with CBA in Jan, 2 years at 5.29. Mortgage person said I was crazy because rates were going to drop this year 🤦🏻♀️
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u/SydneySandwich 2d ago
Rates were going up before that, it was clear that by the tail end of last year the next move was up as all the fixed rates started moving. I fixed at 4.85 in december with rate lock and next morning it went up.
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u/dat_shibe 2d ago
Hindsight is always 20/20
Fixing your rate is essentially betting against the banks. I figure they know the market better than me, so I don't fix.
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u/Stunning-Fill-8982 3d ago
I’m getting concerned that there’ll be several more.
I have a bit of fat in the budget can so I could stomach another 4 or 5 rises without too much pain, but it’s not ideal.
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u/mrstarfish3 3d ago
Not really. I fixed mine in January this year 2026 for two years, one of my properties is 5.49% and the other 5.29%. After the time is up who knows where we will be…
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u/mrstarfish3 3d ago
Unlike you I don’t have a victim mentality, so I don’t care and I don’t want your sympathy. Also, I have 3 properties. Go on your eat the rich tirade for people and companies with millions of dollars of networth, I’m not one of them.
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u/poofyeyebags 2d ago
Did you fix the third property rate as well or is that on variable ?
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u/mrstarfish3 2d ago
Fixed but at 6.00% - did it a bit later and higher LVR. I’m ok with it
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u/Puzzleheaded-Act-761 2d ago
Reddit can be a nasty place. Best of luck to you. I hope things turn around for all of us soon. This decade was not the 2020s any of us had envisioned.
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u/ztrayacnt 23h ago
lolololol. Farken 6%. Mate, what do you anticipate to earn from these "investments"?
"Look at me, my personal income tax is less than yours because I have investments running at a continuous loss", where’s the capital growth story gone?……Up-in-smoke.I look forward to your sob stories in a few years.
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u/ztrayacnt 19h ago
Lol - nah brus, I own my own place, got my own investments, don’t rent nothing.
Keep laughing "all the way to the bank" 😂😂😂1
u/mrstarfish3 19h ago
I see you like to invent things on Reddit. You must have such an amazing life to try and troll people on Reddit on a Saturday about their mortgage.
Don’t worry everyone’s special and maybe one day I’ll let you rent my house so you’re not homeless ;)
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u/ztrayacnt 19h ago
You’re the fool spending your own Saturday night taking offence to someone you don’t even know and replying near instantaneously.
Keeping on worrying about how to tackle those interest rates 😬😬😬→ More replies (0)2
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u/ztrayacnt 1d ago
Lol, what an "investment".
Please enlighten us as to how much interest you’ll be paying on your "investment" properties over the life of the loans? I swear to god the numbers will be gross.
In your situation, I wouldn’t be mentioning (subtly bragging) online that I have more than one property.
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u/mrstarfish3 1d ago
Oh look a troll who doesn’t understand investment and cashflow. I’ll do what I like thanks. Won’t be wasting any time on you that’s for sure.
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u/ztrayacnt 1d ago
Ah sorry my friend, I didn’t realise you were an economics professor, and not some one who got onto the "property investment" bandwagon.
You’ll be the first one whinging about how tough it was when you realise that your "investment" was more bother than what it should have been.
What’s the next train you’ll board?
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u/Pain9gain7 3d ago
Highly doubt we will see an increase this time. But idk worlds a pre fkd place rn anything possinle
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u/Finance_With_Piyush Property Enthusiast 3d ago
Well, that's true. I'm seeing lots of open homes lately that aren't clearing, and arrears are rising in some suburbs across Melbourne. It feels like a tougher time ahead, or like I need to think about another strategy to deal with this mortgage stress.
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u/Rude_Lead4814 3d ago edited 3d ago
No, when the loan was established in 2023 the minimum repayment was $3170, I paid extra every month since then so even with higher rates it’s only $3079 now.
It’d be disappointing but I could probably weather 15+ raises because I purposefully didn’t overextend.
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u/MotionSmiith 3d ago
this is because after three years of repayments, your loan principle has decreased, and so it looks like you were not affected by interest rate rises.
have you ever tried to calculate, for the amount you have borrowed, after repayments over X number of years, what is the final total amount you have paid ?
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u/corvettefixer 1d ago
Two words cause rate rises !
Government spending 😡😡
But what do they care ?
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u/AdministrativeFly489 1d ago
Responsible people would have factored in higher rates when they took out a mortgage, especially when borrowing at lower than average rates. I got mine when rates were 2% and ran my numbers assuming 7% rates. I've always expected rates to sit at 5% long term. None of this will be a shock to anyone with a bit of financial literacy and discipline to not borrow beyond their ability to service the loan. At the end of the day, those are the guys that pumped up the property prices so I have little sympathy.
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u/dieleicaq 1d ago
What a naive thing to say. Not when you bought 5 years ago when the government made all sorts of promises including driving up spend and inflation with subsidies and offers and now we're in a 15 year high. We were all misled.
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u/Unknown_User6543 19h ago
It’s naive to think this wasn’t the outcome
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u/dieleicaq 5h ago
Yes ,silly us trusting the government...should have known better. The Forward Guidance: During the COVID-19 pandemic, the RBA signaled that the official cash rate would likely remain at record lows until 2024 to support economic recovery.
The Apology: During a Senate estimates hearing in November 2022, Lowe apologized to Australians who took on heavy debt based on the bank's conditional forecasts, stating: "I’m certainly sorry if people acted on what we’d said and now regret what they had done.
Stupid me for trusting them and listening to what their guidance was.
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u/vrkrk007 2d ago
I think we are staring at 4 more hikes before a long hold. A full percentage point higher rates for quite some time.
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u/theonedzflash 3d ago
The traders at our firm reckons no rate hike before the year end, potentially a hike early next year.
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u/Vegemetzger 3d ago
The next Inflation figures are out at the end of the month. If it is up again, there is a high chance cash rate will go up early Nov. RBA have the difficult job of trying to get in front of inflation and the compounding effect is starting to run away from us.
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u/Smooth_Commercial793 3d ago
You can fix your rates? Banks let you do that? What kind of periods are you getting?
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u/poofyeyebags 2d ago
Not that stressed as I had a big portion of my loan fixed earlier in the year at a good rate. The small variable portion is currently 80% offset against.. trying to build that offset balance before the end of the year as buffer
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u/MomoNoHanna1986 2d ago
You should be stressing about the possible third … Majority of people can ride out a second.
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u/Finance_With_Piyush Property Enthusiast 2d ago
Market is full of surprises lately, so I’m literally pondering what next can come.
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u/MomoNoHanna1986 2d ago
I can ride the second. But I borrowed very little. Third one might be pushing it. Provided you didn’t borrow your max you should be fine.
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u/Finance_With_Piyush Property Enthusiast 2d ago
I still have some cushion after Refi few deals to handle this upcoming rate blow, though I’m more into reassessing my risk appetite and strategy nowadays.
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u/Signal-Treacle-5512 2d ago edited 2d ago
No not really I'll just eat out less. We got 1k a fornight buffer after bills and 100k in offset as ww borrowed what we could afford.
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u/CurvyBathtub67 2d ago
Broker recommended that I use 9% to be conservative, glad I listened, borrowed 200k below my max.
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u/Super_Ad7719 2d ago
Mate rates are going higher short term, I doubt November they will raise but after that I believe they will, over the next 12-18 months I wouldn’t be surprised if we seen at least 2-3 rate rises.
We sold and are currently renting looking to buy again in the near future when the dust settles, all I can say is renting has helped us get back on our feet, owning a home now isn’t what it used to be, having repayments of over a thousand dollars a week, not including insurances, rates, maintenance costs etc consumes your life.
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u/Slight-Radish-5846 2d ago
Currently renting but pre-approved and looking, no sign of rent increase from LL but has definitely got me considering revising my purchase price so I've got a buffer.
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u/Monfari 2d ago
Bought a house at the peak too - only constellation is we sold our apartment at the peak to upgrade.
Although we stretched our budget, the increases haven’t changed our lives yet. I’m an avid saver so future hikes will mean I’ll need to start reducing what I put in savings.
I do worry about increases in 2027 as we will have just put our kid in childcare then.. that will change things.
I’d say the only thing currently in our favour is the unemployment rate is at a long time high this month. So that will likely keep things stable for the next month.
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u/Exact_Theory3902 2d ago
I just had a look at ORPI and it is showing a 64.5% chance of a hold: https://ourtop10.com.au/rba-index/
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u/BarbaricGlueHuffee 2d ago
My landlord already notified us in Jun what our Dec increase would be. Not that I think it makes a difference.
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u/DamnSpamFilter 2d ago
Yes, Stretched myself, bought in Feb, and have copped 4 hikes already, killing me.
Luckily have a buffer built up already in the offset, but we are pulling money out before pay day every fortnight.
I had limited options of lenders when purchasing due some personal financial situations. The plan was always to refinance around now, issue is I can't get a loan for the amount I have borrowed at current rates.
Luckily I have a tonne of equity in the property, but I feel for those who do not, or are negative.
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u/icchill007 2d ago
Well a friend just got their car insurance renewal notice and it's up 12% and Coles put the cost of paper bags up 20% so inflation is still strong so probably more interest rate pain to come ....
Can businesses please stop putting prices up and break the cycle ....
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u/Draco_TGx 1d ago
No, because at the end of the day, I’m glad I’m not paying off someone else’s house anymore.
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u/interrogumption 1d ago
I'm fine because I got rid of a car and switched to riding a bike. Transport is #3 in most people's highest expenses. Not everyone can do it but for those who can, it's all upside and no downside.
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u/RoyalOtherwise950 1d ago
I fixed back in Feb (for stability when changing jobs) and im so glad i did now, even if the intention was completely unrelated. I just got lucky.
But if it wasnt fixed id be really struggling with that on top of how much utilities and groceries and fuel have all gone up. Its tight now... hopefully by early 2028 we arnt in an even worse situation....
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u/BeyondTheRoadWA 1d ago
Riding it out at the moment. Better to be still than making it worse by selling now
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u/Real-Direction1045 9h ago
Not stressed at all, looking forward to it, this economy is too hot, then before you know it we will back in the good times.
Swings and roundabouts.
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u/jhooolay-red 4h ago
I think I can handle two more before stressing out.
Having said that, your situation is EXACTLY what RBA is looking for. They are gonna keep squeezing you until you either give up and book a loss (yay! Told ya "we" will control propery prices- moment) or you end up eating one meal a day (hoping that everyone does that so that inflation slows down).
RBA exactly wants everyone to suffer like you. And they are doing this not because they hate common people - it is becase it is the only option they have.
I am really sorry to write this, but please know that I am in the same boat.
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u/broccolini-zucchini 3d ago
I’m not stressed but only because we bought a house well below the amount we were approved for. If we had borrowed the full amount the banks were prepared to lend us a few years ago, then we’d be absolutely screwed now.
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u/KluzyKoala 3d ago
We did the same so not stressing but agreed if we got our full amount would be stressed.
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u/Over_Tha_Rainbow 3d ago
I’m torn because on the one hand I don’t have a mortgage anymore so I appreciate the increase to my savings interest rate.
But on the other hand I’m trying to sell and downsize, and the market is already struggling with a lack of buyers. Raising interest rates will just make it even harder to sell.
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u/MotionSmiith 3d ago
in my opinion, sell now and you will realise it is the best decision you have made. you can buy low later.
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u/Inevitable-Jacket348 2d ago
they did say they are trying to
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u/MotionSmiith 2d ago
yes, what i really meant to say is, sell but do not buy, yet. if you are going to sell and then buy at the same time, doing it when market is up or down will have no difference.
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u/Over_Tha_Rainbow 2d ago
Yes I’m trying to sell
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u/MotionSmiith 2d ago
i have always maintained that the price of any property is the cost of building it plus the value of the land it is built on, as per city council valuation. work out the valuation of your property for yourself and see how much you think you want for it. it is not hard to sell, but it might be hard to accept what people are willing to pay for it, especially if it is far from the value you have in mind.
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u/Over_Tha_Rainbow 2d ago
I don’t really care what price I get so long as the property I’m buying is also discounted.
Currently on the market priced slightly under the comparables but it’s a two storey house on smaller block which narrows down the buyer pool.
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u/Carbonfencer 3d ago
No? It's just money.
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u/Expectations1 3d ago
Trump will end war randomly, oil prices plummett, but our economy and productivity will be shite, so they will cut soon enough, its just about hanging in there about 1 year.
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u/Shek-O- 3d ago
Curious as to why the straight suddenly opens when trump ends the war though?
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u/One_Tip1928 3d ago
Yes, I have the feeling that Iran won't just open the straight and it will be just like it used to be (free) just because Trump gets tired of playing (or impeached or something else). They know how much power they have now to cause chaos.
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u/racyLacy456 2d ago
And everyone will have to turn to America for oil since trump already has a tone of it and more so after stealing from Venezuela
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u/One_Tip1928 2d ago
Yep - all that lovely heavy crude that's hard to get out of the ground and even more difficult to refine. He really is the crappy gift that keeps on giving.
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u/Velo3x10e8 3d ago
If memory serves it was only closed as a reaction to the US attack.
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u/das_kapital_1980 3d ago
Most of my leases have already rolled over this year so I just factored it into the rental increase preemptively.
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u/MotionSmiith 3d ago
i think the whole idea of the rate rises is to create pressure on people who are trying to stretch their budgets to 'encourage' them to sell their property now, esp when property prices are still high. if they try to 'hang in there', any future rate rises is going to be unbearable. the flood of property coming out for sale would cause a market collapse. one should only take out a mortgage to buy property only if they are comfortable.
FIRST TO SELL, WINS.
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u/Candid_Fisherman3731 2d ago
I am stressed as I just finished a place and have to set the rent higher than I estimated to help with the loan. Meanwhile the poxy govt just keeps spending on corrupt schemes like the ndis and solar schemes. The rba needs another control mechanism.
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u/Naphitali 2d ago
As a FHB finally entering the Sydney property market in 2025. It’s been a wild mental ride. 😭 Probably best to hunker down and just stop reading about it haha. I’m laughing so I don’t cry !