Comments on: AUSTRALIAN INTEREST RATE RISES SEEM ILLOGICAL http://blogs.rhq.com.au/realestate/2007/09/06/australian-interest-rate-rises-seem-illogical/ Stephen Sharry's Real Estate Blog Tue, 6 Jan 2009 23:39:37 +0000 http://wordpress.org/?v=2.0 by: Andrew http://blogs.rhq.com.au/realestate/2007/09/06/australian-interest-rate-rises-seem-illogical/#comment-5 Thu, 06 Sep 2007 02:56:40 +0000 http://blogs.rhq.com.au/realestate/2007/09/06/australian-interest-rate-rises-seem-illogical/#comment-5 Stephen, Congratulations on your blog. The look and feel is great! Interesting entry on Interest Rates. Naturally the real estate industry is nervous about interest rates, for as they rise, so does the propensity for a flattening of the market. There are many variables which need to be employed/addressed. Stamp Duty is a prime barrier/cost for the Victorian market, as much as it was for the NSW market in recent times. Still, when you look at the NSW market after the Stamp Duty changes, it flattened anyhow. The true challenge which the reserve bank has, is making sure that the economy is strong, at the same time not compromising domestic wealth. Given that we are used to cycles, and that the entire nation is facing an ageing population, coupled with a free thinking and somewhat selfish Generation X and Y, you cannot help but wonder what the next cycle incarnation will be, and what actions the reserve bank will take. A tough job indeed. Looking forward to some great discussions on here. Cheers Andrew Stephen,

Congratulations on your blog. The look and feel is great!

Interesting entry on Interest Rates.

Naturally the real estate industry is nervous about interest rates, for as they rise, so does the propensity for a flattening of the market.

There are many variables which need to be employed/addressed. Stamp Duty is a prime barrier/cost for the Victorian market, as much as it was for the NSW market in recent times. Still, when you look at the NSW market after the Stamp Duty changes, it flattened anyhow.

The true challenge which the reserve bank has, is making sure that the economy is strong, at the same time not compromising domestic wealth.

Given that we are used to cycles, and that the entire nation is facing an ageing population, coupled with a free thinking and somewhat selfish Generation X and Y, you cannot help but wonder what the next cycle incarnation will be, and what actions the reserve bank will take.

A tough job indeed.

Looking forward to some great discussions on here.

Cheers

Andrew

]]> by: Kevin http://blogs.rhq.com.au/realestate/2007/09/06/australian-interest-rate-rises-seem-illogical/#comment-4 Thu, 06 Sep 2007 02:55:54 +0000 http://blogs.rhq.com.au/realestate/2007/09/06/australian-interest-rate-rises-seem-illogical/#comment-4 I agree Stephen. I think the thought expressed recently that the ‘great Australian dream’ of home ownership is fading, is correct. Young people now believe that home ownership is becoming too hard because of interest rate uncertainty and are begining to believe that it will never happen for them. This is dangerous and could breed a whole generation of renters. The Banks should have a duty to combine financial counseling and mentoring with the provision of loans. This will serve to encourage home ownership as a means to compulsory saving and instill confidence in young people that can borrow with confidence if it is done responsibly. Kevin Turner I agree Stephen. I think the thought expressed recently that the ‘great Australian dream’ of home ownership is fading, is correct. Young people now believe that home ownership is becoming too hard because of interest rate uncertainty and are begining to believe that it will never happen for them. This is dangerous and could breed a whole generation of renters. The Banks should have a duty to combine financial counseling and mentoring with the provision of loans. This will serve to encourage home ownership as a means to compulsory saving and instill confidence in young people that can borrow with confidence if it is done responsibly.
Kevin Turner

]]>