when rates rise again property will slump

  1. 26,710 Posts.
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    All these investors jumping in to buy so called investment properties...
    With interest rates at record lows, and they are still NEGATIVE GEARING !!!

    If rates start rising, its armageddan in the investor sector..
    many will not be able to afford the "negative gearing gap" if they are losing 10's of thousands at record low rates its will multiply quickly at 7 or 8 % rates or higher...

    it will add 25% to losses, many just cant afford that..
    so it will be sell, sell, sell, and that's what the BANKS will tell them to do
 
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