Mortgage Repayments

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Originally Posted by solmanic

Unfortunately, and people will probably flame me off the thread for this, but the government should be simply jacking-up the tax on fuel. It's the single most effective way of curbing discretionary spending as that will elevate the price of most goods and services overnight.

Fuel here is too cheap by far. We should by rights be charged maybe $2.50/l. This would have the double effect of reducing non-essential travel and raising the price of most things to slow the economy. The fuel tax level can be directly controlled by the government to keep inflation under control without the RBA having to simply resort to interest rate rises for the same effect.

The additional revenue from increased fuel tax is then available for spending on national infrastructure, but at a level that would not, in itself, counter-stimulate the economy which we are trying to slow down OR could be put towards a more effective and substantial first-home buyers' rebate.

We have a Prime Minister with 70% approval rating and a government with 60%+ approval. They are in a position to use this popularity to dish out some tough love to the country. It is early enough in their term that if they have the balls to do it and things smooth out in a couple of years, then they could still win re-election.

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Right or wrong, solmanic, you are a rare bird to be thinking of the well being of us all and not just your own interests.
For that alone, kudos.
That's something most politicians don't do, and if they do they soon stop.

Oh bugger, you own a trillion in oil stocks don't you???
I'm such a naive romantic sometimes I could kick myself....

In the old days could also increase the Statutory Reserve Deposit (SRD) ratio. That meant that if you gave the bank $100 they could loan out say 90% or $90. They could change that which would take money out of the economy without increasing interest rates. However I think when they de-regulated it they lost the ability to do that.

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Originally Posted by inside

Me. In Brisbane 300K does not get you much. In hindsight it was the right decision as our place has increased significantly in value over the last two years.

Oh, I have a new Land Rover, a big TV and I just put in a new kitchen. Plus my wife is leaving work soon as we have a baby on the way. I guess I'm the type of person that people blame for the interest rate rises? To me though I'm not too worried. I work hard for my money and I will spend it how I like. When rates get to 12% I'll start to get concerned. Although had I bought a 4-500K house like the bank wanted us to I would be very worried now.

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I am pretty much the same as you
I got a mortage for 500k easy but we bought a house for $300,000 and done pretty much the same as you . Big Tv , redecorate and new kitchen . Two Land Rovers and a new toyota camry
And a first kid on the way in August
And I dread to think what we would be like if we bought a 500k house. :eek:

Ali