Interest Rates

[Frezzinghot]

Do you still think this will happen?

Yeah id be right in about 12 months.

[donna]

I cant see any point in fixing long atm. Most of the loans are coming off in August this year, and buy the time they come off another year I expect them to flatten or decline. Hopefully

Do you still think this will happen?

[Perry]

My loans or melons? Ahhh, the wonders of predictive / phone-dictated text.

[Frezzinghot]

Interesting update from WestPac economist. So OCR could go to 4% - house prices drop 15% by end of 2023. As you say here - peaking in 2023 and an easing back - but by how much is the unknown.

cheers,

Donna

I cant see any point in fixing long atm. Most of the loans are coming off in August this year, and buy the time they come off another year I expect them to flatten or decline. Hopefully

[donna]

A 15% drop seems very large compared to history, but to put it in context, it would only take average prices back to where they were at the start of 2021.

Fixed-term mortgages were closer to the peak than the trough of this cycle but shorter fixed terms in particular still had some way to rise.

Interesting update from WestPac economist. So OCR could go to 4% - house prices drop 15% by end of 2023. As you say here - peaking in 2023 and an easing back - but by how much is the unknown.

cheers,

Donna

[McDuck]

Pay real tax, then inflation 'tax.' (Also known as eroded / diminished purchasing power.)

Ha!

I like it.

I totally agree.

Debt causes inflation, inflation is a secret tax.

As it takes a collusion between Treasury, the Reserve Bank and the Trading Banks to make happen.

You'll have to give them full points for misdirecting the attention away from themselves and towards workers asking for more money or supermarkets scalping on prices.

Such an beautiful bit of misdirection.

[Perry]

Yes ... Buy real assets that give strong returns

Returns of any sort predicate that someone can pay for them. That caveat said, I generally agree.

Money in the bank is a total waste. Pay real tax, then inflation 'tax.' (Also known as eroded / diminished purchasing power.)

Just under three years ago, I spent $40k on a bit of "real assets" stuff.

Said 'stuff' has gone up in cost price by over 50%. If it can be obtained at all.

And in the meantime, it's hired and earning one helluva lot more than would the money in the bank.

[McDuck]

Yes ... I understand Bankrupting many nations and populations could well be the Global Agenda reset plan ..as no way many of these massively in-debt nations can continue to pay interest and roll over Debts as they move well north of GDP of nations.. Its all just going one way .. Buy real assets that give strong returns

It's my idea, and it's just a gut instinct, that they are going to try something totally new this time around.
All you need to know that they need to unwind all that "extra money" they put into the system.

That "extra money" was what was pumping bitcoin and stocks and houses.

Was.

You'll be looking at a totally new financial landscape.
But with totally new opportunities too.

[JBM]

Yes ... I understand Bankrupting many nations and populations could well be the Global Agenda reset plan ..as no way many of these massively in-debt nations can continue to pay interest and roll over Debts as they move well north of GDP of nations.. Its all just going one way .. Buy real assets that give strong returns

[McDuck]

I think we will be forced to halt the major rising in rates going forward as far too many kiwis hit the wall and default

How many is too many?

Rates may keep going up,.... because central bankers are playing a larger scale game than you imagine.
(They're playing for the survival of an empire).

How's that for a cryptic titbit...

[JBM]

If you had a loan coming off a 1yr fix in July - what would you do Jeffa?

Move to variable and wait for interest rates to drop

or

Fix short term

or

Fix long term

cheers,

Donna

I'm in the same boat ... two loans coming of 1 Yr Fixed term 2.19%!!!!!!!! .... playing on paying them either completely off(I've been trading the ASX resources space making big $$$) or just re-fixed 6m-1yr as I think we will be forced to halt the major rising in rates going forward as far too many kiwis hit the wall and default

[Jeffa]

2 year NZ bond yields down on news Russian troops moving into Eastern Ukraine.

[Jeffa]

Market not liking Putins decision to recognize 2 separatists controlled Ukraine regions, This enables Russia to put Russian peace keeping forces within the Eastern Ukraine.

Asian futures market have begun to sell off along with the NZX50.

Yes this is or will be tied to interest rates.

[Jeffa]

If you had a loan coming off a 1yr fix in July - what would you do Jeffa?

Move to variable and wait for interest rates to drop

or

Fix short term

or

Fix long term

cheers,

Donna

I've got a few properties coming off the same time

I'm going 1year or the best available rate and increasing rents to recover what shortfall I can .

My mortgages aren't very large so everyone is different.

I have old credit lines sitting on each property which haven't been used so I may dip in to them to cover extra costs until rates do eventually come down as history shows that, but that could be some time in 2023 onwards.

[donna]

If you had a loan coming off a 1yr fix in July - what would you do Jeffa?

Move to variable and wait for interest rates to drop

or

Fix short term

or

Fix long term

cheers,

Donna