<b>Low interest rate and "good" time to spend in Australia is comin...

Terrence Miao - 2013-03-20 00:10:43+1100 - Updated: 2013-03-20 01:17:33+1100

Low interest rate and "good" time to spend in Australia is coming to an end soon

Comments by the RBA also suggest that current official cash rates are ‘clearly below normal levels’, and further signs that the next rate move will likely be upwards. Philip Lowe, a Reserve Bank assistant governor predicted that low official interest rates would lead to higher consumer spending, boost consumer sentiment and increase asset (mainly homes) prices.

Westpac raises interest rates

Terrence Miao - 2013-03-20 00:19:15+1100 - Updated: 2013-03-20 00:21:46+1100

Ooops, some "economists" win The Foot in Mouth Palme d'Or Award again.

Michael Poloni - 2013-03-20 19:32:53+1100

Interesting developments.

I might bid at a property auction this weekend. Need to decide tomorrow afternoon whether to go variable or fixed. The latter has some caveats, such as no redraw facility (but maybe I won't need it, just don't know!). Notwithstanding that fixed reverts to variable after a couple of years.

Terrence Miao - 2013-03-20 23:54:15+1100

I found that unless you are extremely lucky, it's very hard to beat banks on fixed interest. Almost every fixed interest product has the safety buffer (in case banks bet the wrong way against interest rate), which finally becomes the burden on borrowers.

I still remember one person I know who fixed interest at 9% just before the GFC.

Michael Poloni - 2013-03-21 08:06:25+1100

+Terrence Miao ouch!! That must have been a long fixed period. It seems to me the most common are 2-3 years fixed, after which the mortgage returns to a variable rate.