Pools and Interest Rates....

[XA Coupsta]

LOL

Cryptic title isnt it.

Basically - we've just gone to contract on a house.

I'd appreciate anyones views who are willing to post on the following.....

1. Interest rates - whats everyones opinion - they are still going to go up, or keep stable for awhile, possibly even go down?
(considering doing a 12mth reduced intro rate - which switches to standard variable at end of 12mths. OR.....fixed for 3 years.....but a lot could happen to interest rates in 3 years)

2. Swimming Pools. Looking at a small one - how much $$ do they go for and anyone got any advice from when they built theirs? eg hidden costs

Thanks to anyone willing to post.

XA Coupsta

[poolkeeper]

Originally Posted by XA Coupsta

LOL

2. Swimming Pools. Looking at a small one - how much $$ do they go for and anyone got any advice from when they built theirs? eg hidden costs

Thanks to anyone willing to post.

XA Coupsta

How small is small? dining table size??
I would set a budget for atleast 15k.

Swimming Pool:
Any surface but painted
Salt water
Tile line
Good equipment- pump, filter....

Let me know if you wanna know more..

[Laminge]

CommSec have indicated 1 final interest rate rise before the possibility of rates remaining the same for the next twelve months with a chance of some reductions based on the US economy towards the end of the year..

Cannot help with the pool though.

[TURBOTAXI]

Re Rates most of my places are fixed. On my fixed loans I can pay up to $5k principle per annum when I have cash.

I have to renegotiate one in March after a three year term, I will be looking for a fixed product with the capacity for some principal payment. I will be getting different lenders to look at it and then playing them off against each other for the best deal.

Dont assume that rates are not negotiable, the advertised rate is just the starting point.

My primary motgage is a hybrid loan, I can pay whatever I like (lots) or just the interest if I have a cashflow issue.

There are discount thresholds too - try to borrow enough to get into a discount threshold then park the extra in an offset.

[Falcon Coupe]

My Mum and sister both had pools built at the same time, one was concrete the other fibre glass, the fibreglass pool was very quick to install and has 25 year warranty, the concrete has 10 year warranty and was more costly.

As for intrest rates, if anyone had a crystal ball it would be the only way of knowing. I went variable about a month before the 1st rise this year as the finance broker said they will not go up. :(

[Mudzy]

My pool 10m x 4m at a cost of 17k

[XRchic]

With interest rates, I would be fairly certain that they wouldnt drop. Thats all I would know.

Re pools, I would be aware of current or future possible water restrictions and how the pool would last if you couldnt fill it for a while... if that is even a problem where you are!

Good luck mate!

[XA Coupsta]

Another example of such an awesome forum board that this is.

Thanks so much for taking the time to read into my query and post a reply!

Laminge - thanks heaps for the factual post regarding Commsec and rates. Cheers.

[atec77]

Originally Posted by XA Coupsta

LOL

Cryptic title isnt it.

Basically - we've just gone to contract on a house.

I'd appreciate anyones views who are willing to post on the following.....

1. Interest rates - whats everyones opinion - they are still going to go up, or keep stable for awhile, possibly even go down?
(considering doing a 12mth reduced intro rate - which switches to standard variable at end of 12mths. OR.....fixed for 3 years.....but a lot could happen to interest rates in 3 years)

2. Swimming Pools. Looking at a small one - how much $$ do they go for and anyone got any advice from when they built theirs? eg hidden costs

Thanks to anyone willing to post.

XA Coupsta

Interest rates will go up again at least 1/4 point , possibly more and then stay up for at least the next several years , if people would drop personal debt this would not be required , as for the pool put the $ into the mortgage priciple and wait at least a couple of years , I don't know about other states but the Brisbane area is about to run out of water with two years or less unless there is serious rain and even then water is going to remain critical for years , if this does happen I cant see pools being allowed .

[congo3sr]

try to negotiate the cheapest fixed interest loan you can find,for the time that you are comfortable with,when this time is up,do it again,interest rates will not drop in oz for sometime yet,as for the pool,If you are looking for the cheapest option on your loan,dont bother for a few years yet. just my 2c

[phoon]

Originally Posted by XA Coupsta

Another example of such an awesome forum board that this is.

Thanks so much for taking the time to read into my query and post a reply!

Laminge - thanks heaps for the factual post regarding Commsec and rates. Cheers.

Fibreglass pools are the cheapest way to go as far as bang for your buck. Years ago, the only drawback was that they were very limited in shape. Nowadays, they come in a big variety of shapes and sizes and the other good thing about them is they are in and ready in very quick time. Call Barrier Reef Pools in Beaudesert. They are the largest builder of fibreglass pools in Aus and one of the best priced.

[XD 351 Ute]

I'll go with atec77 on this one.....
Smash the loan, and wait for the pool.

Ed

[capriv8]

My thoughts are if people stop spending/wasting money and reduce debt, and this has been directed at my wife, rates should stay the same or drop. After installing a pool at our last house I have now realised the best pool to have is a friend or neighbours pool.

[4.9 EF Futura]

Originally Posted by XA Coupsta

Cryptic title isnt it.

You can say that again!!

1. Interest rates - whats everyones opinion - they are still going to go up, or keep stable for awhile, possibly even go down?

A good indicator in australia is the major's fixed rates for a given time period. It doesnt reflect their predicted rate, but it reflects the general direction they're expecting.... i.e. the general shape of the 'yield curve'.

A look see at some of the major's fixed rates:

CBA

Std var: 8.07%
1-3 yr fixed: 7.24
4 yr fixed: 7.39
5 yr fixed: 7.14
7-15 yr fixed: 7.59

NAB

Std var: 8.07%
1-2 yr fixed: 7.35
3 yr fixed: 7.18
4-5 yr fixed: 7.39
10 yr fixed: 7.45

WBC

Std var: 8.07%
1-3 yr fixed: 7.35
4 yr fixed: 7.39
5 yr fixed: 7.19
7-10 yr fixed: 7.39

ANZ

Std var: 8.07%
1-2 yr fixed: 7.39
3-5 yr fixed: 7.35
7-10 yr fixed: 7.55

I cant predict the rates, if i could, i'd be out on my yacht right now (or... in my pool lol) but i would say there is a good chance of a rate cut prior to December 2007. RBA will be very conservative in doing so, so a flat rate may prevail.

Of course, there's all sorts of factors which will impact this.

-If the labour market continues to tighten, there'll be significant inflationary pressure.
-Next federal election will have a HUGE impact when considering the fiscal policy of either party.
-Continued drought will slow the economy down a lot, just this month the govt reduced its forecast for economic growth from 3.25% next year to 2.5% as a result of continued drought conditions and impact on farm output.

As it stands, i dont see too much inflationary pressure that would lead the RBA to raise rates in the short/medium term... just one opinion tho...

[Scott]

Originally Posted by atec77

I don't know about other states but the Brisbane area is about to run out of water with two years or less unless there is serious rain and even then water is going to remain critical for years , if this does happen I cant see pools being allowed .

But they can use the Gold Coast's world saving de-sal plant lol. I have been looking into buying pools in Brisbanne and GC as I am moving up there in the very near future. For what I want, I found that I need to park around $25k.

Hav a look at bluehaven pools etc online, they have some deals on their sites from time to time.

[CrankR]

Originally Posted by Mudzy

My pool 10m x 4m at a cost of 17k

At that price i'm guessing it was a few years ago, then there's the cost of concreting that big area around it and doing what looks to be a couloured stamp-crete or similar, then you have the cost of fencing around it. Then you have a good idea in the link block garden wall going around the back.... that would have cost you, then the garden/plants to go around would cost heaps. Just using your pic as an example dude.

So XA Coupsta, it costs many big-ones now days. Get a few quotes, remembering things like waterfalls and spa jets and pool lights cost more on top. Plus cost of the surrounding paved/tiled/concreted area. Fencing around costs (aluminium fencing is the norm but you may want glass panels if it's close to your patio)Shadesails is a big one (including posts),garden beds and plants, any other background features, solar heating on roof (yep even Brisbane weather will only give you a few months a year pleasurable swimming), electrician to run power is an extra(and costly). Turf for after the excavator completely ruins your back yard.
Alot of the smaller stuff you can do your self otherwise you have the big labour charges but 9/10 times they can do a better job and having a well finished pool area is what you look for.
Really, even if you use your pool alot it is one big expensive hole in the ground and at the end of it you probably may think twice about paying the 2-3 dollars fee to get into the local council pool :voldar02: on a hot day.

And to finish off there is the running costs with electricity and chemicals and also a Baracuda pool cleaner or similar.

Sh#t, i'm sure i've missed some things as well...

Anyway, we put our pool in this time last year and love it. 8x4 fibreglass without extras cost around 21k have spent nearly that again finishing it off and i have done most of the work myself.

Don't buy one if your family aren't 'Pool People' 'cause i know heaps of families that have spent heaps and never use it. That's a waste! On the positive side it does add to the value of your home. :

Let us know your plans

[XA Coupsta]

Wow - thanks again. Some awesome knowledge and advice coming out here.

OK the thoughts are:

Pool - putting it on hold. We had a good chunk of cash from selling our last place to put towards the finance on this place. Hence we were considering leaving 20k out for a pool installation. However we are going to throw it all at the loan to begin with - THEN a little later down the track maybe redraw some of that money back for a pool. Primary concern here is to borrow as little as possible and have nice manageable repayments.

But we'd love a pool. I've got young kids, plus my family are ex Nth Qlders who had pools (and hate NOT having one down here) - so I know it would be an awesome addition..........

Interest rate - I'm still thinking we go the 12mth intro rate - smash the loan as hard as possible. Then after 12mths I dont believe the interest rate will be higher than what it is now (but who really knows!). In which case we've had 12mths at hitting the loan hard and saving on interest by having the lower rate.

[phoon]

Originally Posted by XA Coupsta

Wow - thanks again. Some awesome knowledge and advice coming out here.

OK the thoughts are:

Pool - putting it on hold. We had a good chunk of cash from selling our last place to put towards the finance on this place. Hence we were considering leaving 20k out for a pool installation. However we are going to throw it all at the loan to begin with - THEN a little later down the track maybe redraw some of that money back for a pool. Primary concern here is to borrow as little as possible and have nice manageable repayments.

But we'd love a pool. I've got young kids, plus my family are ex Nth Qlders who had pools (and hate NOT having one down here) - so I know it would be an awesome addition..........

Interest rate - I'm still thinking we go the 12mth intro rate - smash the loan as hard as possible. Then after 12mths I dont believe the interest rate will be higher than what it is now (but who really knows!). In which case we've had 12mths at hitting the loan hard and saving on interest by having the lower rate.

Thats smart thinking XA, belt the hell out of the loan repayment as much as you can in the first 12 months, by then you will have some good equity in your property and hopefully the value of your home will have also gone up. then you can redraw extra payments you have put into your property to put in the pool.

[CrankR]

Agreed, rates might go up once more but at least you will have the next year to see and your money will be where it works best (reducing your interest) and you will have it on hand for when u do make the decision.