The last blog about the Reserve didn't seem to enthuse you much, but I'm just so annoyed at the arbitrary way we are treated, and how they make decisions which cannot be based on the reasons they tell us they are based on.
It is predicted that interest rates for Reserve Bank money will increase by another 25 basis points (a quarter of a percent) as a result of Tuesdays monthly meeting, and I feel , going on what I'm reading in the press that that is going to be the case.
The reasoning has been given that the housing market is beginning to grow and sales are yielding greatly increased prices and auction clearances are improving.
Bullshit!
Mr Glenn Stevens, has been in the press making statements in the last few days that are worrying to say the least, to me they reveal an agenda to exclude ordinary Australians from the housing market by allowing either prices to rise above affordability or interest rates to become unserviceable on basic wages and salaries.
A look at Auctions will tell anyone who's keen on property investment that the majority of lower and mid range properties have a plethora of phone bidders from overseas and many foreign buyers in the actual crowd and in the last 3 months those I've attended have in the majority been sold to a foreign buyer, this is backed up be recent reports by the real estate institute, and reports on network TV current affairs programs.
OK, so if it is the case that foreign investors are still buying, and bidding against each other, with easy to obtain, low interest overseas money, and driving the prices up in doing so, how can raising the local home loan rate do anything but keep Aussies out of the market?
Has the Reserve, Mr Stevens, or any of the board really, looked at the retail sector trend as opposed to credit card debt, to bank sector figures of debt repayment directly from credit cards, I think not.
Mr Stevens, it seems, is so out of touch, so insulated from what it's like to be a battler, and so engaged in doing the work of the government agenda he follows, that he doesn't care how many Aussie battlers have to give up their home, struggle to keep them , or even go without to do so, he doesn't give a tinkers cuss, after all he manages his mortgage pretty well on his million dollar salary.
Mr Stevens, it seems to me that you need to be sacked and replaced by someone who has Australia's interests at heart, by someone who is not a traitor (as I believe personally that you are) and by someone who can work out that if the community of Australians are forced out of home ownership and into renting from rich overseas investors, then by your own workings out, interest will continue to rise as they all have to furnish rental houses most likely on credit, but with significant increases to the retail sector, another one of your lame triggers for increasing rates.
It's time we had the reserve work for the good of the public, it's time our banks actually worked for the money they make in the billions, it's time our rates matched the rest of the world, and Aussie property was available to Aussies and affordable to them without the banks bleeding you dry to own it.
Sorry Mr Glenn Stevens, but in my opinion you are a traitor and a fool.
8 comments:
As a home owner with a mortgage I have to agree with the author. It's not only new home owners feeling the pinch of the interest hike but existing ones.
My feeling is that the Reserve Bank feels that only the rich should own a house while the rest of us live in in tents, or rent from wealthy overseas landlords.
If our housing is booming why are there so many more homeless people than ever before?
The problem with the interest rate hikes is that it increases prices across the board - not just housing.
One has to wonder if Mr Stevens is in fact an Australian.
But then so many Australian assets are being sold off one has to wonder who actually owns anything?
The reserve is an independent body, quite removed from the government, and they do consider retail sector figures in their calculations when they decide the cash rate. Why don't you stop peddaling lies and shut this stupid blog down.
Anon 12.31, why dont you just
go and jump in the lake. The
Reserve Bank has become the
ventriloquist puppet of the
Federal Government, Glenn
Stevens and Ken Henry are
two public servants which
are treading on real thin
ice as far as remaining
apolitical is concerned.
This post is SPOT ON!
12;31, . . . You missed the whole point I was trying to make about HOE the Reserve considers the figures in terms of retail and also of housing sector sales . The point was that they don't conside increases in retail sales or Growth in GDP against the credit card debt figures for the same sector. In Australia Credit card debt is one of the highest in the world, we just won't go without.
My whole point is that it is not real spending, and it's not real property sector growth.
Consider this, if you will; A new investment property sells at a mean price of around $450,000 which at current rates here in Australia costs (to hold, interest only) about $30,000 a year or around $570 a week. That figure will be in all probability more than the rental income (around $450) and even with depreciation still slightly negative geared.
Ok, so now consider a foreigner who can access money in their own country at 2%, their holding cost will only be about $9,000 a year or $175 per week. which means on $450 rental income they are actually making a profit and depreciation is a tax deduction which also helps make them richer.
So if you will imagine fo a moment that you have unlimited potential supply for houses and tennants, then foreign investors can buy up many houses accross Australia and owning ten would give an income of around $140,000 per year, which could explain why you don't see many people these days at work when you go around looking at property.
Anon 12:31 - why read this blog if you constantly want to shut it down?
I have to wonder if you belong to the camp of intimidators?
Seeing that Glenn Stevens is
the expert on everything, may-
be he should get a job in the
Immigration Department and stop
all the rich people from Asia
and India coming to Australia
with all their gold money. Be-
cause you know what Stevens you
wanka, thats the reason auctions
are clearing out better and the
housing market is presumably
going along hunky dory. You
really are a tosser mate.
Well as predicted, and despite having to read that rates might be on hold over the long weekend, rates went up a quarter of a percent.
All week last week and then advertised again this week we have seen how foreign investors are generating growth in the Real estate market and pushing prices upwards as well as they bid at auction with unlimited money at cheap interest rates.
What really gets my dander up is how the media seems to be ecstatic as it delivers the news that Aussie mortgage holder wil be slugged an extra $75 a month on the average mortgage.
It's also interesting how the Federal Treasurer was out giving a press conference tell us that banks would be considered greedy if they raised rates above and beyond what the reserve rate rise will be.
At the end of the day, real estate agents are looking for people with foreign language skills as investors continue to troll their listings for reaners.
We lose, they win.
Anon 12:31. It is possible for any organisation or persons who are A political to draw too close to Political in certain circumstances. Look locally and you will see it even happens in our neck of the woods with a organisation.
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