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Water Cooler

Down here in the backwaters of the Southern Hemisphere ��

121.217.220.87

In Reply to: RE: Foreclosures just under 9% - do you know anyone? posted by Awe-d-o-file on March 09, 2008 at 14:34:25

.....Foreclosures are usually referred to as mortgagee in possession or repossession

Our official figures are less than .5% of dwellings are repossessed. However, it is a trend here for the mortgagee to prefer the borrower to jump rather than be pushed into a forced sale. If we took the total number of people selling their home because of financial stress then I suspect our rate would be several percent.

We have a strong economy here but we have just had our 12th official interest rate rise since early 2002. The official rate is now 7.25% Banks add their margins to this rate. So typically a variable rate home loan is about 9% over 20 to 30 year term.

Anecdotally I have not seen an increase in the number of forced sales but our official figures say otherwise (they are increasing)

Smile

Sox

Follow Ups:

RE: the Southern Hemisphere �� - halfnote 20:57:56 03/09/08 (2)
What's the government's rationale for keeping interest rates so high? Are you experiencing inflation?

You guys are net exporters of raw materials, right? How does a strong Aussie dollar help on that front?

What's you energy situation? I could see a strong currency helping to keep energy imports down.
- \\\What's the government's rationale for keeping interest rates so high?///...... - three_sox 00:18:14 03/10/08 (1)
  ...Monetary policy is set by the reserve Bank of Australia independent of the Federal Government. The Federal Government in consultation with the Reserve Bank have set a target rate of inflation to be between 2% & 3%.
  
  Australia has pretty much had that rate of inflation for many many years.
  
  The Federal Government has no debt & runs surplus budgets. (17 out of the last 25 I think)
  
  The interest rate rises are proactive measures to keep inflation under control. Given the unprecedented resources boom it is any wonder we have some inflationary pressures here.
  
  I like the Aussie dollar being strong but many exporters disagree.
  
  The price of fuel has gone up markedly over the last few years but I don�t get on the band-wagon and whinge about it. I don�t look at the price at the pump I just pull in a put in as much fuel as the tank will hold. Life is too short to worry about such tedious issues.
  
  Smile
  
  Sox
  - He must think we have socialism... - dave c 00:51:07 03/10/08 (0)
    ... or some reason the government runs the banks... oh of course, we have healthcare system!!!
    That explains it.
    I too just fill the tank and get on with it, but we are lucky not to be spending every last cent every week.
    I know people who are beginning to feel the pinch.

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