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  1. #1281
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    2 questions - most seem to pick rates coming down and staying down for a while.
    This would make it a no-brainer to pay the cost to break current fixed mortgage.
    BUT could interest rates rise in the next say, 2 years, and what would be the
    catalyst to cause that?

    Read somewhere that the time lag between stimulus and inflation is 9-12 months.
    So this time next year inflation could kick in - does this imply higher rates?
    Thanks
    George

  2. #1282
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    Quote Originally Posted by GTM 3442 View Post
    This would imply that the loan amount was all fixed, not split between fixed and capped/floating.

    The hard part is to work out which proportion of a loan is fixed.

    It doesn't imply any such thing. The loan could well be all at a fixed rate or split.
    And there's nothing hard about working out the split if there is one. Read the loan documents, or ask the lender.

  3. #1283
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    Quote Originally Posted by funguspudding View Post
    It doesn't imply any such thing. The loan could well be all at a fixed rate or split.
    And there's nothing hard about working out the split if there is one. Read the loan documents, or ask the lender.
    I agree funguspudding. Here is a person who willingly entered into an agreement and now he wants to break that agreement. I’m really at a loss as to why people are bleating about their penalty fees – they would have been happy as a pig in muck if the rates had gone up and the bank was paying the loss. They weren’t forced into a fixed term at the start of the agreement. They could have gone floating but made the call fix. So now they are trying to blame the bank for their incorrect judgement call. I’d even go far as to suggest that anyone that doesn’t know what part of their indebtedness is on fixed or floating rates shouldn’t be entering into a loan agreement in the first place.

  4. #1284
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    Minimoke
    I don't think anyone was complaining about their break fees, simply airing their
    current situation. None of the posters blamed their bank as you suggested.
    We are still considering the choices, may even stay as we are, what has come down
    could just as easily go up again. No-one seems to know the answers to my questions
    about the medium term prospects for interest rates and inflation.
    George

  5. #1285
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    Ditto - I wasn't bleating, just stating the situation.

  6. #1286
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    Quote Originally Posted by minimoke View Post
    Except over the past three months to October, we’ve seen figures which show there are increasing numbers of sales; the time on market is reducing and the median price appears to have bottomed out and is on the slight increase. Too early to suggest a trend, ...

    Back in Jan 07 when he first posted the median price was $327,000, at Oct 08 its $335,000, He would be a lot better off now than then as he still has increased value in his property, ....
    REINZ's national median price last month was $337,500, up from $335,000 in October. A 0.74% INCREASE in a month and the 4th month in a row with no drop.

  7. #1287
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    From QV on 8 Dec, average NZ house price fell to 375,408 from 379,290 in October.
    Yet from REINZ on 11th Dec, average NZ house price rose in Sept-Oct from
    330,000 to 335,000.
    Someone's pulling someone's tit and I repeat, to think they get paid for
    churning out this rubbish.
    George

  8. #1288
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    Quote Originally Posted by minimoke View Post
    REINZ's national median price last month was $337,500, up from $335,000 in October. A 0.74% INCREASE in a month and the 4th month in a row with no drop.

    Which might be telling you that first home purchasers, or lower priced homes. are the highest-non performing sector. If you have access to information, have a look at the number of houses listed for sale that are attracting no interest,r have been withdrawn because of lack of interest. It's quite staggering.

  9. #1289
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    Quote Originally Posted by funguspudding View Post
    Which might be telling you that first home purchasers, or lower priced homes. are the highest-non performing sector. If you have access to information, have a look at the number of houses listed for sale that are attracting no interest,r have been withdrawn because of lack of interest. It's quite staggering.
    There is clearly tension between supply and demand coupled with finding willing buyers and willing sellers.
    Median values went up on one of the lowest sales volumes ever. But days on market is reducing – down to 44 off a high a few months back of 58. Faster sales indicates a bit more energy coming back into the market – that’s probably not a bad thing.
    We are being told that there all these distressed sellers out their loosing their shirts on property. But this isn’t evidenced by the sales figures. If there aren’t many sales there aren’t many people loosing on property.

  10. #1290
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    Another question I now add to the ones above re inflation and interest rates (which no-one
    seems game to answer) - what about DEflation???
    After a bit of research, it seems opinions are split with deflation being the worse situation.
    So no-one knows!!! Inflation would be good for property I gather, but deflation would not.
    If deflation, then I should pay the fee (now 5k) to break our fixed mortgage, but if inflation
    is to occur again (possible in a year or so) then I should stay fixed.
    Going by the news it's all bad for property for the near term and first home buyers would be
    wise to wait, but by the time the news is good it will be too late. Interesting times.
    George
    Last edited by George; 16-12-2008 at 06:19 AM.

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