After about 13yrs, we are about 30% of the way through our mortgage. We have capacity for slightly higher rates but it's really starting to hurt. My wife is getting a bit depressed that we both work full time just to more or less tread water. What I'd like to know is how will higher rates bring down my power bill? They won't! Bring down petrol prices? Nope... OPEC just cut production to keep prices up. Food? Sure perhaps people will eat less or switch to cheaper products.
My power bill last qtr (without any discounts) was $1700. As of July 1, that same bill will be over $2200! Jack up rates to 20% and it won't bring those prices down. (Luckily summer is over and the air con is off.)
My brother in law is about to roll off his 2% interest and brokers have told him they won't touch him with a barge pole because he is seriously at risk of defaulting (That what taking over a mortgage after divorcing does) He's got 5 boys and is considering selling but we are urging him not to because 1, he won't find a rental and 2, he will never get back into the market.
From what I read, its things like company profits, energy etc that's driving inflation. One of the directors in a LIC I have got a 27% pay bump to his base salary last year. He didn't deserve it imo. Where's my 27% pay increase?
The commentary out of the RBA lately really highlights how out of touch the big end of town is with median income earners.
