I think you are not old enough to have lived through it and seen how rates and banks rive the property market and the economy.
Because I lived through the 80's and experienced it gives me a far better idea than some one who is too young to have been there.
I also studied quite a few modules of accounting and investing accounting at UNI in the early 2000's so I have an idea. I have also bought a few properties in my time. I havent bought one for quite a while because I can see what such low rates have done and that it is not sustainable at all and property prices will collapse in Australia sooner than later. When they have been coming down for a couple of years I will then start buying property again but only if the rates forecast stay reasonable at around say 5% or so.
There may be periods of inactivity in prices and rates. Sure back in the middle of the last century prices were fairly stable and rates were stable but that is another era entirely. My father bought his first home in Perth for $3500 pounds.
But if you take another look at the world properly this time you will find that rates drove property from about 1975 till this very day.
There is no denying it.
From the mid seventies till this very day banks and rates have driven the property market.
Why do you think household debt to GDP is so high??
