Interest Rates

[ivanp]

The loan was so small that no one in the bank really cared about the rate?

[PTILoveYou]

How on earth did you negotiate such good terms on such a small loan?

I think the loan must have been $487,000. No way the bank would give that kind of cashback nowadays for a 50k loan.

[BigDreamer]

Watch the space, sub 4.5% rates within two months.

Within 2 months? Let us see this space in start of September. I wouldn't expect to fall that quickly within 2 months. At least no the advertised rates (?). I wish I'm wrong, however.

[PTILoveYou]

Within 2 months? Let us see this space in start of September. I wouldn't expect to fall that quickly within 2 months. At least no the advertised rates (?). I wish I'm wrong, however.

Well since economists are telling us don't trust them, I would certainly advise against trusting my prediction too.

But in the past month the rates have gone from 5.05% to now 4.7%, anything is possible in the next 6 months!!!

[quebec]

How on earth did you negotiate such good terms on such a small loan?

Sorry my bad loan amount it $487,000.00

[Wayne]

Well since economists are telling us don't trust them, I would certainly advise against trusting my prediction too.

But in the past month the rates have gone from 5.05% to now 4.7%, anything is possible in the next 6 months!!!

2 months, 6 months?
Anything is possible over the next year.

[speights boy]

What is possible is that AKL investors will be paying higher rates than owner occupiers.
Ceteris paribus.

[Wayne]

What is possible is that AKL investors will be paying higher rates than owner occupiers.
Ceteris paribus.

They can afford it.
Even without cash flow you could just sell postage stamp size bits each rates bill.

[speights boy]

When I said rates I meant interest.

[Wayne]

When I said rates I meant interest.

how much more would be the question.

[Orpheus1]

When I said rates I meant interest.

Just another tax deduction and a reason to drive up rents to cover the difference...

[speights boy]

Just another tax deduction and a reason to drive up rents to cover the difference...

Correct.
So there won't be any complaints from investors then I'm sure.

[Orpheus1]

Correct.
So there won't be any complaints from investors then I'm sure.

I personally would just like the rents covering the mortgages and expenses for the homes I provide to people that need to rent.
I don't really care to try to milk tenants.
All I really want is 5 to 7% long term capital appreciation and in 10 or 15 years Ill sell one to get the others paid off and live off some passive income.
Ill spend the next 10 to 15 years also paying down the debt on the above..
Ive worked my ass of to get 3 properties and I will purchase more when I'm ready.
People need to be accountable for there own lives, shit is hard, life is hard, deal with it and figure out the difference as early in life as possible the difference between assets and liabilities..
Red wine rant over!!
Best of luck to everyone we all deserve a crack..

[Orpheus1]

I personally would just like the rents covering the mortgages and expenses for the homes I provide to people that need to rent.
I don't really care to try to milk tenants.
All I really want is 5 to 7% long term capital appreciation and in 10 or 15 years Ill sell one to get the others paid off and live off some passive income.
Ill spend the next 10 to 15 years also paying down the debt on the above..
Ive worked my ass of to get 3 properties and I will purchase more when I'm ready.
People need to be accountable for there own lives, shit is hard, life is hard, deal with it and figure out the difference as early in life as possible the difference between assets and liabilities..
Red wine rant over!!
Best of luck to everyone we all deserve a crack..

Sorry a bit off topic with the rant but Im currently trying to roll over or refinance 400k of a loan with one bank.
I have debt with said bank of 1.2m on 2m of property.
Ive got business debt in there as well so I guess its 1.5m on 2m

Ill let you know how it goes..

[speights boy]

I don't really care to try to milk tenants.

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