Interest Rates

[Orpheus1]

I'm sure you don't.
Out of interest (pun intended) what happens to rents when interest rates fall significantly ?

Hmmm
Not sure as I've never been in that situation?
I guess I would take advise from my Property managers and set rent accordingly to make sure I get some kind of solid occupancy...

[Meehole]

Well Im feeling suspicious cause I approached business banker about loan for commercial property and he has rung me asking how things are going. Never dealt with him before, but offered a good deal using rental equity as a deposit. Anyone watch the interview with Robert Kiyosaki (however its spelt - Rich Dad Poor Dad) on Facebook about his new book 2nd chance?
The world is going to hell in a handbag between 2016 - 2020 so make the most of it now I guess?

[Wayne]

Hmmm
Not sure as I've never been in that situation?
I guess I would take advise from my Property managers and set rent accordingly to make sure I get some kind of solid occupancy...

So you haven't had property for long then - not when interest rates were 10%?
Or even 7.5%

Are you saying if costs go up you will raise rents and if they go down you will set rents to meet the market?

[Wayne]

The world is going to hell in a handbag between 2016 - 2020 so make the most of it now I guess?

Not sure about the specific dates (years) but things are really out of whack at the moment so something has to change.

[elguapo]

Well Im feeling suspicious cause I approached business banker about loan for commercial property and he has rung me asking how things are going. Never dealt with him before, but offered a good deal using rental equity as a deposit. Anyone watch the interview with Robert Kiyosaki (however its spelt - Rich Dad Poor Dad) on Facebook about his new book 2nd chance?
The world is going to hell in a handbag between 2016 - 2020 so make the most of it now I guess?

Is this the book where he goes all gold, tinned food and shotguns?

[speights boy]

Just another tax deduction .........

Meanwhile in the UK

Budget 2015: Buy-to-let tax break to be cut

Buy-to-let landlords face cuts in the amount of tax relief they can claim on mortgage interest payments, the government has said.

The amount that landlords will be able to claim will be set at the basic rate of tax, which is currently 20%.

The move is aimed at creating a "level playing field" between homeowners and investors, chancellor George Osborne said.

http://www.bbc.co.uk/news/business-33447991

[Orpheus1]

So you haven't had property for long then - not when interest rates were 10%?
Or even 7.5%

Are you saying if costs go up you will raise rents and if they go down you will set rents to meet the market?

5 years on two properties and 3 years on the other.
6.5% when I started and now around 5.4%
on PM's advice rents have ticked up from $380 to $500 and $430 to $600, other is a ppor..
living the dream man!

[Wayne]

5 years on two properties and 3 years on the other.
6.5% when I started and now around 5.4%
on PM's advice rents have ticked up from $380 to $500 and $430 to $600, other is a ppor..
living the dream man!

So your rents have little to do with costs then?
But you'd still expect them to go up if your costs went up.
Seems like having your cake and eating it too.

[PTILoveYou]

SBS Bank has set their 18 month 'special' at 4.85%

http://www.interest.co.nz/news/76478/challenger-bank-cuts-key-mortgage-rate-making-it-lowest-any-term-new-zealand-market

This morning, Westpac has launched a two year 'special' at 4.89%

http://www.interest.co.nz/news/76489/red-bank-joins-rate-cutting-party-special-rate-lower-its-rivals

[PTILoveYou]

Refixed a 100k loan at 6 months 4.85% with Westpac.

[BigDreamer]

Nice - I only managed to fix 6 months at 4.95% with BNZ this morning. A tad disappointment as I was hoping 4.89% (4.85% would have been a bonus). Oh well, it is only for 6 months afterall.

[BigDreamer]

This is for a $328k loan by the way.

[PTILoveYou]

My 100k loan is out of a total of 1.1mil, so I may have some better negotiation power?

This was done through my trusted broker.

[BigDreamer]

My 100k loan is out of a total of 1.1mil, so I may have some better negotiation power?

This was done through my trusted broker.

Likewise (total loan just over $1.1mil with BNZ). I am not all that disappointed as I still managed to get a decent 3 years rate (5.85%).

[ivanp]

Likewise (total loan just over $1.1mil with BNZ). I am not all that disappointed as I still managed to get a decent 3 years rate (5.85%).

5.85? maybe 4.85?