Sunday, March 09, 2008

Ready or not, here comes the drop - you feel lucky when you know where you are

Another bout of interest rate rises has left the man and I wondering if owning property is all its cracked up to be. We're not as badly affected as some people as our loan is mostly fixed, its just that when our three years runs out (in a year or so) then we might be in real trouble.

There are so many variables though, I might have gotten a promotion, the man might be Australian of the Year or.. I might be Jen and the man, well he might be the man. Interest rates could go up or down and the Melbourne property market might - as our real estate agent so eloquently put it, 'shit itself'.

We don't know whether to hold on to what we have considering there is lots of development happening here (however this also includes new apartment blocks), sell (for a profit) and rent, sell and buy a cheaper block and build in the 'burbs (we could be Rae and Tony's neighbours) or we could sell and move out of Melbourne altogether. Are these turbulent times normal and we should just grin and bear it? It's newspaper articles like this that worry me.

We don't have a clue! Some joker mentioned interest rates go down as well you know. Frog poo I say. Ever since we got a mortgage they've been on the uppity up.

Anyway, suggestions are welcome!

- Jen


Daniel Bowen said...

If you bought a couple of years ago, then don't worry. At worst you'll bail out and sell for a huge profit! Could be a LOT worse. As for whether or not you can ride out the rates, just have to see what happens.

Brian said...

Stick it out so then you can tell the kids in years to come how to paid a mortgage when the interest rates where 17% (yes Mum I know you did, stop telling me!). Too much info for my first comment?

Andrew Highriser said...

Buying and selling costs so much. So long as you can manage and you like where you live, stick at it. I am sure you won't be sorry in the long term.