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/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 1d ago

It’s naive to think this wasn’t the outcome

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u/dieleicaq 15h 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/Sweet-Camera7036 20h ago

I agree. The writing was on the wall during Covid due to the unsustainable spending. We got out of an expensive mortgage 5 years ago and have zero regrets. Those who bought our house are now down $150k in value and mortgage payments up. People, please don’t get sucked into buying beyond your means and understand how macro economics works……

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u/UpbeatDimension4634 7h ago

Its hard when even Dr Lowe earning $500k/year of public money absolutely railed so many Australians