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Thread ID: 87936	2008-03-09 09:36:00	Mortgage advice??	nofam (9009)	PC World Chat

Post ID	Timestamp	Content	User
647701	2008-03-10 08:46:00	The banks raised their interest rates just last week, yet the reserve bank hasn't raised the rates since last year, so what is the justification for that?. The reserve bank will only reduce the rates if inflation is under control, and they have already said that they don't see them easing for a long time. Australias rates are also raising and are almost as high as ours now. Yeah but its not all about inflation. If there is a chance of a recession, it WILL have to drop its rates despite what it would do to a already over-inflated property market and consumer spending. And if you have a look at the rates banks charge us, its only 1-2% more than the OCI which is to make a profit (a margin so to say) www.rbnz.govt.nz	beeswax34 (63)
647702	2008-03-10 09:12:00	To the OP's question. Interest rate doesn't to me look like its gonna drop soon. House prices prob won't drop that much. Some may say its overpriced 33%, yeah but that is current situation and there are buyers willing to pay that. Yeah .. property prices has said to take longer to sell and a maybe a cheaper price. I doubt the price of house are gonna drop 33%, a $500,000 house arn't gonna cost $150,000 cheaper in few years. I say it may drop 10% in a yr or two that's like $50,000. Like some say, the drop in house prices a bit probably won't be noticeable with the higher interest rate. IMHO I think, if you want to buy, do the maths and consider it. You don't have to pay rent and stuff. It may also have other value that its not a rental, it's yours and maybe its a property that you particularly like. I think the NZ interest rate is highish compared to a number of countries. NZ tends to lead it. I think NZ is not heading to a recession, compared to other yrs NZ is on a roll, high NZD, low unemployment. Doesn't translate to increase of std of living but I guess that is just NZ. NZ isn't a very developed business investment nation. Its suttle. I think if properties prices get a drop in prices sooner or later the demand bounce back up and so does the price drop. NZders love of owning properties isn't gonna to change. I say in the 2 or 3yrs its either rent it or own it. That's the waiting time I see.	Nomad (952)
647703	2008-03-10 09:49:00	Yeah but its not all about inflation. If there is a chance of a recession, it WILL have to drop its rates despite what it would do to a already over-inflated property market and consumer spending. And if you have a look at the rates banks charge us, its only 1-2% more than the OCI which is to make a profit (a margin so to say) www.rbnz.govt.nz Banks are however going to want to make a larger margin due to the increased risks, and also they are going to have to pay more offshore for the money to lend here, due in part to the sub prime crisis. Essentially credit isn't going to be as cheap as it once was, and it isn't going to be as easy to get. The property market here is largely inflated, becuase large mortgages have been very easy to get, with low interest rates. But when those factors change, people are going to end up with houses that they can't afford to maintain the mortgage on, and owing more money than their house is worth. It is sad to see, and I can see many mortgagee sales in the future unless something changes. Regarding housing prices dropping, apartments in Auckland are being sold significantly less than they were purchased for. I read that a $500,000 apartment purchased last year, sold for $300,000, and there are lots of other examples of this in Auckland so prices are already dropping in the NZ market.	robbyp (2751)
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