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  • Fixed mortgages now bumping 8%

    From JohnO@21:1/5 to All on Sun Aug 20 15:51:32 2023
    People who bought on fixed 2.5% mortgages a couple of years ago rolling onto a "special" 7% rate, on a $800k 25 year mortgage will see monthly repayment go from $3,500 to $5,700. They will need to find an additional $52,000 after tax income, in other
    words an additional $78k of income to cover this extra cost.

    Or... they will have to spend that much less. That will entrench the recession. Those that have the means can simply move to Australia.

    We're a bit fucked in Ayoteearower. That's what you get for electing a government of student politicians and activists and expect them to do a grown-up's job.

    If you have a large mortgage you have my sympathy.

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  • From Tony@21:1/5 to All on Sun Aug 20 22:59:38 2023
    JohnO <johno1234@gmail.com> wrote:
    People who bought on fixed 2.5% mortgages a couple of years ago rolling onto a "special" 7% rate, on a $800k 25 year mortgage will see monthly repayment go from $3,500 to $5,700. They will need to find an additional $52,000 after tax income, in other words an additional $78k of income to cover this extra cost.

    Or... they will have to spend that much less. That will entrench the >recession. Those that have the means can simply move to Australia.

    We're a bit fucked in Ayoteearower. That's what you get for electing a >government of student politicians and activists and expect them to do a >grown-up's job.

    If you have a large mortgage you have my sympathy.
    Mine too.
    I know several young folk who are convinced that they will need to sell but finding buyers will be very hard soon unless we get a real government soon - roll on election day.

    --- SoupGate-Win32 v1.05
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  • From Gordon@21:1/5 to Tony on Mon Aug 21 02:59:31 2023
    On 2023-08-20, Tony <lizandtony@orcon.net.nz> wrote:
    JohnO <johno1234@gmail.com> wrote:
    People who bought on fixed 2.5% mortgages a couple of years ago rolling onto a
    "special" 7% rate, on a $800k 25 year mortgage will see monthly repayment go from $3,500 to $5,700. They will need to find an additional $52,000 after tax income, in other words an additional $78k of income to cover this extra cost.

    Or... they will have to spend that much less. That will entrench the >>recession. Those that have the means can simply move to Australia.

    We're a bit fucked in Ayoteearower. That's what you get for electing a >>government of student politicians and activists and expect them to do a >>grown-up's job.

    If you have a large mortgage you have my sympathy.
    Mine too.
    I know several young folk who are convinced that they will need to sell but finding buyers will be very hard soon unless we get a real government soon - roll on election day.

    Let us remember that some people were warning of the interest rates
    increasing. These things go in cycles and the interest rates could only go
    up. I offered the advice of 8-10% is what you need to budget for. Some took
    it, others did not.

    It was the low interest rates which in part allowed the house prices to
    rise. If the interest rates were 10% the house prices would not have risen
    as fast. So for profit, lower the interest rates, let the prices rise and
    then up the interest rates. Which are on a higher amount.

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