Interest Rate Hike – Could Send 300,000 Out of Their Homes

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The latest interest rate hike here in Australia sets the official interest rate at 7%, which is an 11-year high. Since 2002 interest rates have gone up 2.75%, and it is starting to hit people really hard.

Australia already has a nation wide housing affordability crisis, and this is only adding to the problems. It’s expected that up to 1000 families here in Townsville are expected to default on their home loans. Nation wide that number is expected to be as high as 300,000 for home loan defaults.

This could be only the start of a huge mortgage crisis in Australia this year, with an expected further increase of at least 0.5% at least this year to try to curb inflation here in Australia (ex. grocery bills have increased about 50% since 2000).

When we got our first home loan about 5 and a half years ago we fixed our loan at 5.99%. On this house our current loan was fixed for three years at 6.99%. If we were to re-fix our loan right now and stick with the Bank of Queensland (who we currently use) we would be looking at 8.49%. By the time our current fixed loan ends in September we could be looking at a potential rate of 8.99%! Ouch, that will be quite an increase…

I know that I shouldn’t complain. My parents and Tamara’s parents all lived through the 1980s when housing loan interest rates at 20+ per cent. I heard on a radio show that here in Australia over 35% of the average families wages already goes into their mortgage repayments. The upcoming interest rate hike will increase that percentage even further.

From what I have read there are mixed feeling about how the interest rate hikes will affect house prices. The Townsville Real Estate Market is going gang busters, and has been for a while, but even a place as booming as Townsville is vulnerable to the increases in interest Rates. Only time will tell that I reckon.

Sources:

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One Step Closer to Becoming an Australian

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For those of you who don’t know, I am a Canadian who has living in Australia for nearly 10-years. My wife is and Australian, as are my two kids who were born in the Townsville Hospital.

Today I sat for my Australian Citizenship Test. Before I did the test I read through a free booklet that the Australian government provides, “Becoming an Australian Citizen“. I also did a few sample Australian Citizenship Tests and was quizzed by Tamara on the booklet.

Well, I passed my Australian Citizenship Test with 100%! I’m pretty excited as I have never been a person who enjoys test…

I wrote a bit about actually sitting the test on my personal blog, as well as some links to some sample tests on that site. Here are links to those articles:

Now I’ll be able to send in my application for Australian Citizenship and go from there to eventually a citizenship cerimony.

Townsville Showgrounds Decission – Best All Around

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Last year the Queensland State Government floated the idea of selling off the Townsville Showground to make way for more development near the centre of Townsville. This week though the government announced that they will not be selling the Townsville Showgrounds for redevelopment.

As a resident of West End, Townsville I had mixed feelings about the sale of the Townsvile Showgrounds. In one hand I like having the Showgrounds here, there is a lot of history to it, and it is central for most people in Townsville. At the same time though I was getting fed up with some of the noise, especially from the motor sports and speedway events begin held there.

In backing off the sale of the Townsville Showgrounds the Queensland government also stated that “high-level impact events such as motor sports and outdoor concerts should not be allowed at the (Townsville Showgrounds) site“. The report went on to say that state government land in the Bohle, a mostly industrial part of Townsville, had been identified for a proposed motor sports complex and drive trainer centre.

So as far as I am concerned, it a win both ways. Townsville gets to keep it’s Showgrounds, and there will be a new, suitable facility built for the motor sports.

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Free Garden Waste Disposal in Townsville

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This year the Townsville City Council has started to allow free disposal of Garden Waste at their land fill sites.

I reckon that part of the reason for the free domestic garden waste disposal is to stop garden waste going into the regular land fill in Townsville. Because Townsville is growing at such a rapid pace there is increased pressure put on the existing land fill site and the general waste disposal system here in Townsville.

We are currently using a garden bag service that we pay a monthly fee to. The new free domestic garden waste disposal is putting a lot of pressure on the companies that do the garden bag services, because they are still charged to dispose of the garden waste, even though most of the waste comes from domestic sources.

We might be looking at cancelling our garden bag service, but given the time saved, the cost of petrol, and the headache of borrowing a trailer, I am awfully tempted to keep paying for the service…

Source: Townsville City Council – Citiwaste

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