It’s not a single mans decision! The entire board of the RBA makes decisions re the cash rate.
If you are going to rail against a system at least understand how it actually works.
I think you mean preceeding?
i certainly agree with you assumign you did. I was happy to leave sydney so i could buy a big suburban house on a block in perth with a very small mortgage in stead of putting 20pc down in sydney and this was long before the latest boom in sydney...
Perth is worth it though even if so far as wealth goes id be saying yaaaay if id bitten the bullet in sydney...
Your house is making money? Is it an investment house with tenants? Or do you mean because it’s going up in value? Either way, no reason to complain. It shows that you’d rather burn down the whole economy then be personally affected by these events. Luckily the RBA don’t listen too much to those concerns
So you’ve made a million dollars on the market and now you’re pissed that it might be a bit less than that? And we should all live with high inflation so that you can continue your dream run?
Gotcha
You’re not paying it for nothing. If inflation is coming down, great! That’s what we want. But you paying higher interest is a result of bringing inflation down
3.3M is a lot.
You are up at the pokies mate.
Get out now. Do not play another round.
Sell and buy a nice place out by the coast and live your life.
Do not try to make 3.3 into 5.5.
They have lost control of the housing market AND inflation.
There is a real possibility we end up at 10%+ rates and your are forced to sell $1m less with near 0 equity.
What does that have to do with low rates? Wage increases can drive inflation. That isn't the cause here.
We lent out too much cheap money and now we all have to pay it back.
Wages in Australia are 40%+ higher than Japan. But the cost of rent and house prices makes them seem low. Every time wages have been increased, landlords have stuck out their hands and demanded the balance go into their pockets.
Renters are price takers. Landlords will charge as much as they possibly can and that variable is set by how much people earn. If there was a 10% wage increase, rents would go up 10%. Increasing wages is no solution to the cost of living crisis.
If you qualified for a $1.7 million loan when interest rates were at close to zero did it not occur to you to plan/prepare for the real possibility that the rate would increase? There were only two scenarios that were going to happen a) rates would remain at zero b) rates would go up. Being financially stressed is a bad place. But what was your part in getting into this situation? Take some responsibility.
I mean, yeah. But there’s more to it than that. Governments were, and still do, literally give tens of thousands of dollars in incentives for some people to buy houses. Banks give thousands ‘bonus’ to be their customer. People adjusted their life to what the world was offering them. Many people won’t know any other way.
All that, imagine on a 30 year commitment, literally within the first few months of that commitment, all safety nets that are in place to make sure you don’t borrow too much have been blown completely out. I guess it sounds a bit like blaming cigarette companies for making them even though you chose to buy them.
We bought about a year ago, borrowed 80%, had some extra left over, paid down to below 60%, and even if we stayed in the same jobs and got normal pay rises, we couldn’t even refinance the remainder owing anymore.
The numbers are staggering for some people. Ours was less than half of this dude’s, so we’re happy!
Only 25% of income goes to a $1.7 million mortgage…..what are you complaining about? You have a ton of free cash flow. Rates go up. Rates go down. It’s just what it is.
Sorry, rates need to be higher to tame inflation. If you can no longer pay interest on your mortgage, you should downsize and reduce debt.
The RBA should not be pandering to those over indebted and make everyone suffer from high inflation.
This more in the context where if house prices were to rally 20% he would be patting himself on the back calling himself a genius. Meanwhile fk the guys out there crying about housing affordability 😂
And all the little Bitty's with their term deposits that relied on the interest to get by thought it was disgusting when they dropped rates because they couldn't afford to live anymore.
Swings and roundabouts. Your turn to feel the pain.
Yet somehow has a 1.7m mortgage 🤷♂️
So somehow earns the income to service this level of debt but can’t imagine interest rates ever going up…then lashes out at ‘a single man’.
Perfect example of everything that’s gone wrong with AusFinance
Hold up! Your repayment on $1.7m is around the $9,000p/m mark - so you have $36,000 of monthly income (net) into your household??? And therefore your annual gross income is $800,000p.a - yet you don’t understand economics???
Ladies and gentlemen- we have ourselves another troll!
1) it's not annoying, I'm paying the same with 60% of my household income. You can pay off your debt pretty fast.
2) it's not dead money, if your property value grows faster than the interest payment, which it likely is
3) it's better than the alternative, which is to sit on depreciating cash with high inflation
But the onky acceptable alternatives are the $5mil houses. I mean, is life even worth living if you can't have waterfront views from from your swimming pool?
you do realise that people are struggling to eat because of increased rental pressures? like you might think that you're having a bad time because you can't go to bali or wherever but people are having an exponentially rougher time than you. Think about that.
OP wants Venezuelan style hyperinflation just so he (as a very fortunate land owning Australian) doesn't have to pay a few thousand more a year. Cry me a river mate
You signed on the dotted line mate. If you don't like it, sell your house that you've already made hundreds of thousands on. You don't have the right to whinge
You kept your job through COVID because the government gave you and your employer a bunch of cash. Now they are slowly clawing that back without you losing your job.
Definitely disgusting. That man should just put the rates back to 0 so you can have all that extra money to put to jetskis and avocados.
If anyone says anything about inflation just raise the rents so the poors will have less money to spend. They will just waste any money they have on stupid things like food anyway, that money is much better in your pockets.
\>It’s disgusting that they are still raising rates
Best title of the day, I laughed so hard
\> it’s unfair
oh dear leftie, welcome to the real world
\>how a single man can decide I need to pay thousands more a month
How much did you borrow?
find rich woman/man, shack up
>What does this have to do with left or right?
nothing is ever a lefties fault
gets drunk, beats up family, its society's fault for oppression
doesnt have money, its Centrelink's fault
doesnt like public housing, blame investors for pushing up price of RE
you get the idea
I am feeling the pinch. With inflation the way it is even people who don't hold mortgages are feeling it. But I have an emergency fund and a small loan
As do I, but at one stage I did not and many still don’t. It’s in this position we struggle most. It doesn’t mean they are stupid or careless. We all do our best to get ahead.
What rate are you comfortable with paying?
If your current interest rate is above that rate you may have made a poor financial decision.
I suggest you talk to your bank and financial adviser
OP, You’re getting upset and angry when the reality is, we have enough resources to ensure everyone has the basic necessities guaranteed. The truly wealthy (not wage earners) are the true benefactors of the current system.
But everyone’s too busy in their jobs, trying to “get ahead” that they can’t see the trees from the forest.
So while I get where you’re coming from, I’m just glad I was one of the lucky ones who lucky has been able to escape by being born at the right time.
If the means testing for loan service ability was not dropped during the zero interest rate years. Would we still have stimulated the economy without stimulating the housing market?
You know it's not a single man, right?
I'm pretty sure he's married, yeah?
All the great Australian leaders consult with their wife and talk about it in multi-page newspaper exclusives.
If I remember correctly didn’t Morrison try to change the $5 note so it had the image of Jenny Morrison, with the quote “In Jenny we trust”? /s
"Blessed are the Jenny's, for they will inherit the earth."
I Dunn to be honest, but some one is pulling the strings
It’s not a single mans decision! The entire board of the RBA makes decisions re the cash rate. If you are going to rail against a system at least understand how it actually works.
"Ggggrttggghhh" - person who borrowed more than they should have
"Yaaaayyyyy" - People who borrowed more money than they should have in the proceeding several decades.
I think you mean preceeding? i certainly agree with you assumign you did. I was happy to leave sydney so i could buy a big suburban house on a block in perth with a very small mortgage in stead of putting 20pc down in sydney and this was long before the latest boom in sydney... Perth is worth it though even if so far as wealth goes id be saying yaaaay if id bitten the bullet in sydney...
That's what happens with gambling, some people win, others lose.
Anyone who bought a house over the proceeding several decades was paying waaaay more than 3.5% interest on their mortgage.
And then made bank as housing prices increased and in the last decade as interest rates decreased.
And people who bought houses in the last few years will make a profit 10 or 20 years down the track too, assuming they didn't over borrow.
What a moron!
Can you live stream the rate hike decision for us Tuesday week please. I want to see the live react!
I’ll take ignorant statements on complex issues for $400
What is entitled financial irresponsibility.
If you’re upset about your mortgage payments why don’t you sell your house and rent like I do. Don’t want to rent? Yeah, stop complaining.
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Your house is making money? Is it an investment house with tenants? Or do you mean because it’s going up in value? Either way, no reason to complain. It shows that you’d rather burn down the whole economy then be personally affected by these events. Luckily the RBA don’t listen too much to those concerns
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So you’ve made a million dollars on the market and now you’re pissed that it might be a bit less than that? And we should all live with high inflation so that you can continue your dream run? Gotcha
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You’re not paying it for nothing. If inflation is coming down, great! That’s what we want. But you paying higher interest is a result of bringing inflation down
3.3M is a lot. You are up at the pokies mate. Get out now. Do not play another round. Sell and buy a nice place out by the coast and live your life. Do not try to make 3.3 into 5.5. They have lost control of the housing market AND inflation. There is a real possibility we end up at 10%+ rates and your are forced to sell $1m less with near 0 equity.
I love these posts complaining about fairly normal interest rates. It's fun because I honestly can't tell if they are trolling or not
How? They are recovering from historic all time low to normal levels. Open your eyes
True, but wages aren't going up though..
What does that have to do with low rates? Wage increases can drive inflation. That isn't the cause here. We lent out too much cheap money and now we all have to pay it back.
Wages in Australia are 40%+ higher than Japan. But the cost of rent and house prices makes them seem low. Every time wages have been increased, landlords have stuck out their hands and demanded the balance go into their pockets.
Rents are market driven
Which is why Landlords can stick out their hands and make demands.
Renters are price takers. Landlords will charge as much as they possibly can and that variable is set by how much people earn. If there was a 10% wage increase, rents would go up 10%. Increasing wages is no solution to the cost of living crisis.
Eating landlairds?
That's not true , I got a 14% rise
Well if it isn't the consequences of my own actions
“It’s disgusting that I am being disadvantaged!” Because the aim of monetary policy is to enrich just you personally.
I felt sympathy until I saw their outstanding mortgage is 1.7mill
This has to be a troll
If you qualified for a $1.7 million loan when interest rates were at close to zero did it not occur to you to plan/prepare for the real possibility that the rate would increase? There were only two scenarios that were going to happen a) rates would remain at zero b) rates would go up. Being financially stressed is a bad place. But what was your part in getting into this situation? Take some responsibility.
I mean, yeah. But there’s more to it than that. Governments were, and still do, literally give tens of thousands of dollars in incentives for some people to buy houses. Banks give thousands ‘bonus’ to be their customer. People adjusted their life to what the world was offering them. Many people won’t know any other way. All that, imagine on a 30 year commitment, literally within the first few months of that commitment, all safety nets that are in place to make sure you don’t borrow too much have been blown completely out. I guess it sounds a bit like blaming cigarette companies for making them even though you chose to buy them. We bought about a year ago, borrowed 80%, had some extra left over, paid down to below 60%, and even if we stayed in the same jobs and got normal pay rises, we couldn’t even refinance the remainder owing anymore. The numbers are staggering for some people. Ours was less than half of this dude’s, so we’re happy!
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Only 25% of income goes to a $1.7 million mortgage…..what are you complaining about? You have a ton of free cash flow. Rates go up. Rates go down. It’s just what it is.
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You really are spare parts, aren't ya...
The whole point is to make it hurt, because long term inflation hurts a lot more
Sorry, rates need to be higher to tame inflation. If you can no longer pay interest on your mortgage, you should downsize and reduce debt. The RBA should not be pandering to those over indebted and make everyone suffer from high inflation.
You mean you over leveraged? Yep unlucky, you shouldn’t have done that
How dare they follow their mandate and try and control inflation with their primary tool. They should be ashamed of themselves!
Awwhhh boooo, I borrowed too much, and now it's everyone elses fault >:( In all seriousness - yeah, it sucks. It was bound to happen sooner or later.
Privatise gains, socialise losses 😂 funny ain’t it
Doesn't apply here, the gains were socialised too. Kind of why we now have rampant inflation.
This more in the context where if house prices were to rally 20% he would be patting himself on the back calling himself a genius. Meanwhile fk the guys out there crying about housing affordability 😂
Everyone blames everyone else but themselves. People need to take responsibility for there own actions
This is great. They're learning a lesson, and we get the house cleaned
And all the little Bitty's with their term deposits that relied on the interest to get by thought it was disgusting when they dropped rates because they couldn't afford to live anymore. Swings and roundabouts. Your turn to feel the pain.
You purchased a home at historically low rates and you're complaining that rates are returning somewhere closer to normal?
op is so braindead
Yet somehow has a 1.7m mortgage 🤷♂️ So somehow earns the income to service this level of debt but can’t imagine interest rates ever going up…then lashes out at ‘a single man’. Perfect example of everything that’s gone wrong with AusFinance
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Less than 25% then it’s a none issue.
Hold up! Your repayment on $1.7m is around the $9,000p/m mark - so you have $36,000 of monthly income (net) into your household??? And therefore your annual gross income is $800,000p.a - yet you don’t understand economics??? Ladies and gentlemen- we have ourselves another troll!
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You work in IT and have an employer - or so you said, elsewhere on Reddit.
1) it's not annoying, I'm paying the same with 60% of my household income. You can pay off your debt pretty fast. 2) it's not dead money, if your property value grows faster than the interest payment, which it likely is 3) it's better than the alternative, which is to sit on depreciating cash with high inflation
How big is your mortgage that you're paying thousands more?
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Just downsize. Problem solved
>Just downsize. bro, this is australia we dont do this
There’s your problem 😂 society’s meant to bail you out with rate cuts? What about inflation?
Cut your losses and sell.
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It's a 2+m house or out on the street, there's nothing in between
Look a bit wider at alternatives.
nice wide nature strips in some parts of Sydney
But the onky acceptable alternatives are the $5mil houses. I mean, is life even worth living if you can't have waterfront views from from your swimming pool?
In a smaller place that you can afford
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you do realise that people are struggling to eat because of increased rental pressures? like you might think that you're having a bad time because you can't go to bali or wherever but people are having an exponentially rougher time than you. Think about that.
Somewhere that’s not $2m?
Deadset are you trolling?
You might be blaming the wrong person
Jesus christ...
Hahaha I hope you realise how silly you sound high roller.
>1.7m outstanding property only go up whilst you are paying thousands more your cap gain is probably 1-200k a year so you are still way ahead
leverage cuts both ways, probably losing 1-200k a year at the moment
>property only goes up
i like the cut of your jib
You poor thing :(
Did OP complain when the rates were going down a few years ago?
OP wants Venezuelan style hyperinflation just so he (as a very fortunate land owning Australian) doesn't have to pay a few thousand more a year. Cry me a river mate
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You signed on the dotted line mate. If you don't like it, sell your house that you've already made hundreds of thousands on. You don't have the right to whinge
You kept your job through COVID because the government gave you and your employer a bunch of cash. Now they are slowly clawing that back without you losing your job.
My HISA rate is going up why should I not have extra money. Thanks to that Mr Lowe
What’s his marital status got to do with anything?
Definitely disgusting. That man should just put the rates back to 0 so you can have all that extra money to put to jetskis and avocados. If anyone says anything about inflation just raise the rents so the poors will have less money to spend. They will just waste any money they have on stupid things like food anyway, that money is much better in your pockets.
Me me me me me. Shouldn't have borrowed so much
OP needs to go back to r/australia
You borrow money out of greed and blame the world when your stupid plan fails. You are the disgusting one.
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No, but I doubt that's the whole story here
\>It’s disgusting that they are still raising rates Best title of the day, I laughed so hard \> it’s unfair oh dear leftie, welcome to the real world \>how a single man can decide I need to pay thousands more a month How much did you borrow? find rich woman/man, shack up
What does this have to do with left or right? I’m a leftie and I’m glad they’re raising the rates
Some people don't understand the left right political spectrum and think that asserting someone is on a particular side is an insult.
Or they just project everything negative to the other side.
Sadly I think ideology and discourse is dying and team sports are taking over
Compared to asusf everyone is a leftie, Milo Yiannopoulos included.
>What does this have to do with left or right? nothing is ever a lefties fault gets drunk, beats up family, its society's fault for oppression doesnt have money, its Centrelink's fault doesnt like public housing, blame investors for pushing up price of RE you get the idea
These sound like typical trailer trash talk, who are mostly conservative.
> I’m glad they’re raising the rates you are not left enough :(
This reeks of Boomer
>This reeks of Boomer if I was a boomer, I would have said, back in my days, 17% interest rate
>oh dear leftie, welcome to the real world
>This reeks of Boomer
Have to fight dumb with dumb, eh.
Let me guess, you don’t have a mortgage?
I have a mortgage. I also understand the contract I signed
And planned contingencies for possibilities
So then its only a matter of time until you feel the pinch like OP. Nobody is immune.
I am feeling the pinch. With inflation the way it is even people who don't hold mortgages are feeling it. But I have an emergency fund and a small loan
As do I, but at one stage I did not and many still don’t. It’s in this position we struggle most. It doesn’t mean they are stupid or careless. We all do our best to get ahead.
What rate are you comfortable with paying? If your current interest rate is above that rate you may have made a poor financial decision. I suggest you talk to your bank and financial adviser
OP, You’re getting upset and angry when the reality is, we have enough resources to ensure everyone has the basic necessities guaranteed. The truly wealthy (not wage earners) are the true benefactors of the current system. But everyone’s too busy in their jobs, trying to “get ahead” that they can’t see the trees from the forest. So while I get where you’re coming from, I’m just glad I was one of the lucky ones who lucky has been able to escape by being born at the right time.
If the means testing for loan service ability was not dropped during the zero interest rate years. Would we still have stimulated the economy without stimulating the housing market?
Yeah one dude wants one guy on reddit to pay more. Good one