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Got Interest Rate thread

904 posts in this topic

A)

so as an oldie, you could have $500k in super

retire, take lump sum

buy a house

go on aged pension.

or

cool.gif

take a payment plan,

get part pension.

pay rent.

just saying family home or not, id take the full pension.

Unless you are mid fifties plus I doubt option A will be available to you when you retire. Limiting lump sum payments will be the next reform in super.

What I find odd is the value centrelink attribute to a house. A single with a PPOR can have $192.5k in assets before the pension reduces, a single without a PPOR can have $332k. Centrelink values a house at $139.5k. Renters get screwed in their old age.

Gran renting or buying scenario, assuming they buy out of their super with no property ownership before that....

Assumptions - buy or rent a place worth $400k. 5% yield on house. 5% return/interest on super. Water, rates, maintenance etc = $5k pa.

A)

Housing cost $5k pa

Interest Y $5kpa

Pension $18k pa (reduced by $500pa due to income test)

Net Y after housing costs $18k pa.

cool.gif

Housing cost (rent) $20k pa

Interest Y $25k pa

Pension $10.5k (reduced by income test)

Rent assistance $3.1k

Yet Y after housing costs $18.6k

This is a rather simplistic scenario, but did not prove my early assertion that " Renters get screwed in their old age". argh... did not include tax...

Edit - Y=income a lapse back to my first degree.

2nd edit - Personal abbreviation can be interesting. With a commerce and medical background you could probably work out my notes, even without, you could probably get the general idea of what I'm saying. When I visit my parents there is often a note next to the phone written in shorthand. Mum says she can wright faster than you can speak! Even with typing at 100 wpm I can't keep up.

Edited by zaph

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It's an interesting discussion, but a moot one. No govt is going to include PPOR in means testing grans pension.

It comes down to what people think is fair and just, and we will all have a different opinion on that. Some, like my parents, don't believe the pension should be means tested at all. Or if it is it should be far more generous than it is.

I think it comes down to an issue of certain demographics being protected from the cost of the Australian Property Bubble while other groups are forced to carry the full burden through increased debt and housing costs. It's fundamentally unfair.

"I'm worth $2 mill but it's not my fault so I should be eligible for Government welfare." :blink:

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It's an interesting discussion, but a moot one. No govt is going to include PPOR in means testing grans pension.

It comes down to what people think is fair and just, and we will all have a different opinion on that. Some, like my parents, don't believe the pension should be means tested at all. Or if it is it should be far more generous than it is.

I suspect that you will find that gran's pension won't be means tested with reference to the PPOR, but YOURS will.

Just like they did with university education. Just like they did with dependent spouse offset. ....just wait.

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I suspect that you will find that gran's pension won't be means tested with reference to the PPOR, but YOURS will.

Just like they did with university education. Just like they did with dependent spouse offset. ....just wait.

Just like they have done to super now.

Sure the 300k threshold for paying my marginal rate on super does not affect me now but in twenty years if they don't move this theshold it may do.*

*I hope people know me well enough to know I am not talking myself up but referring to the affects of inflation!

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*I hope people know me well enough to know I am not talking myself up but referring to the affects of inflation!

Who knows what's happening next year let alone twenty years in the future tom? :)

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rams saver 4.82%

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RBA 3.00%

Edited by sydney3000

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rams saver 4.82%

hunter united credit union premium online investor account 4.76%

easystreet bonus saver 4.76%

boq bonus interest savings account 4.76%

maitland mutual building society bonus saver 4.75%

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newcastle permanent building society rapid saver 4.65%

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ford co-operative credit society isaver account 4.50%

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RBA 3.00%

I am so fortunate to have locked in 6.8% for 5 yrs in 2011.

Was more good luck than wise decision making.

I can foresee 4% on savings accounts in the near future.

Thanks Sydney3 for the update.

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I am so fortunate to have locked in 6.8% for 5 yrs in 2011.

I dislike term deposits. The savings accounts spell out how the institutions "compete". One thing to notice is that second and third tier institutions are slowly moving up the ranks. I notice the spread between competitive offers keeps shrinking as well because every time an institution tries to break free from the pack it is truly swamped by deposits and they eventually have to balance out their share of the market. It is cyclical in nature. It used to be ING Direct, then RaboDirect, then UBank, then RAMS, ME Bank until April 1, 2013 and then someone else.

It is no wonder APRA is looking into downgrading savings accounts because depositors are extremely well informed and non-committal. The Internet is a dangerous tool.

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There is a Suncorp product that might be of interest to some of you : flexiRates

They are an online term deposit from your funds in an at call flexiRate account (base rate of at call funds close to RBA)

The rates on offer move around a bit and can be quite competitive with those listed for 'saver' accounts, especially shorter term, but not always:

3 months 4.65% p.a.

6 months 4.00% p.a.

12 months# 3.80% p.a.

7 months special 4.30% p.a.

http://www.suncorpbank.com.au/personal/interest-rates

No minimums to get the good rates either so you can have a number of deposits working on different term lengths.

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There is a Suncorp product that might be of interest to some of you : flexiRates

I used to have a Suncorp account but eventually figured the rates weren't in the customer's favour and it added unnecessary complexity. Therefore it is not getting into my list.

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rams saver 4.82%

hunter united credit union premium online investor account 4.76%

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RBA 3.00%

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thnks for the updates syd3k

looks like ubank is slipping, but not too far. eesh under %5. and i hear banks are preparing for less demand and lowering rates without the gov

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Home buyers shun fixed-rate mortgages in hope of more rate cuts

DEMAND for fixed-rate mortgages has fallen for the first time in five months, as hopes of ongoing rate cuts by the Reserve Bank of Australia spur borrowers to take up variable loans, according to Mortgage Choice.

As analysts said the housing market was showing some signs of life, Mortgage Choice today said the popularity of fixed rate loans decreased last month in the majority of states by an average 4.26 percentage points.

Queensland, which has shown signs of mortgages stress on coastal areas, bucked the trend, rising 4.12 percentage points.

The mortgage broker said fixed loans last month fell to 20.14 per cent of new home loan approvals, down from 22.37 per cent in November and below the 12-month average of 21 per cent.

It came as Deutsche Bank analysts said official credit data released last week showed system housing lending growth increased at an annualised rate to 4.8 per cent in November, from 3.3 per cent in June, as the RBA cut rates, with National Australia Bank continuing to outperform its major bank peers.

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rams saver 4.82%

hunter united credit union premium online investor account 4.76%

easystreet bonus saver 4.76%

boq bonus interest savings account 4.76%

anz progress saver 4.66%

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ford co-operative credit society isaver account 4.50%

qantas staff credit union bonus saver 4.50%

people's choice credit union bonus saver 4.50%

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RBA 3.00%

Edited by sydney3000

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rams saver 4.82%

hunter united credit union premium online investor account 4.76%

boq bonus interest savings account 4.76%

easystreet bonus saver 4.68%

anz progress saver 4.66%

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ford co-operative credit society isaver account 4.50%

qantas staff credit union bonus saver 4.50%

people's choice credit union bonus saver 4.50%

...

RBA 3.00%

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rams saver 4.82%

hunter united credit union premium online investor account 4.76%

boq bonus interest savings account 4.76%

easystreet bonus saver 4.68%

anz progress saver 4.66%

ubank usaver 4.66%

cba goalsaver 4.65%

queensland police credit union bonus saver 4.65%

maitland mutual building society bonus saver 4.50%

newcastle permanent building society rapid saver statement account 4.50%

greater building society bonus saver online 4.50%

ford co-operative credit society isaver account 4.50%

qantas staff credit union bonus saver 4.50%

people's choice credit union bonus saver 4.50%

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RBA 3.00%

ME bank 5.1% at call, no fees, no monthly deposits, for first 12months

ME online savings account

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rams saver 4.82%

boq bonus interest savings account 4.76%

easystreet bonus saver 4.68%

anz progress saver 4.66%

ubank usaver 4.66%

cba goalsaver 4.65%

queensland police credit union bonus saver 4.65%

hunter united credit union premium online investor account 4.56%

maitland mutual building society bonus saver 4.50%

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ford co-operative credit society isaver account 4.50%

qantas staff credit union bonus saver 4.50%

people's choice credit union bonus saver 4.50%

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RBA 3.00%

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rams saver 4.92%

ubank usaver 4.91%

boq bonus interest savings account 4.68%

easystreet bonus saver 4.68%

anz progress saver 4.66%

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hunter united credit union premium online investor account 4.56%

maitland mutual building society bonus saver 4.50%

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ford co-operative credit society isaver account 4.50%

qantas staff credit union bonus saver 4.50%

people's choice credit union bonus saver 4.50%

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RBA 3.00%

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rams saver 4.92%

ubank usaver 4.91%

boq bonus interest savings account 4.68%

easystreet bonus saver 4.68%

anz progress saver 4.66%

cba goalsaver 4.65%

queensland police credit union bonus saver 4.65%

hunter united credit union premium online investor account 4.56%

maitland mutual building society bonus saver 4.50%

ford co-operative credit society isaver account 4.50%

qantas staff credit union bonus saver 4.50%

people's choice credit union bonus saver 4.50%

...

RBA 3.00%

Edited by sydney3000

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rams saver 5.01%

ubank usaver 4.91%

boq bonus interest savings account 4.68%

easystreet bonus saver 4.68%

anz progress saver 4.66%

cba goalsaver 4.65%

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hunter united credit union premium online investor account 4.56%

maitland mutual building society bonus saver 4.50%

ford co-operative credit society isaver account 4.50%

qantas staff credit union bonus saver 4.50%

people's choice credit union bonus saver 4.50%

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RBA 3.00%

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rams saver 5.01%

ubank usaver 4.91%

easystreet bonus saver 4.68%

anz progress saver 4.66%

cba goalsaver 4.65%

queensland police credit union bonus saver 4.65%

newcastle permanent building society online savings account 4.65%

hunter united credit union premium online investor account 4.56%

ford co-operative credit society isaver account 4.50%

qantas staff credit union bonus saver 4.50%

people's choice credit union bonus saver 4.50%

boq bonus interest savings account 4.50%

...

RBA 3.00%

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