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nosirommit

1,995 Posts.

27

09/10/15

15:44

Post #: 16147065
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Originally posted by bunny12 ↑

For interest rates to rise economies would have to be growing at least by 3.5% annually and on a sustained basis. If that is given then employment and wages would have risen in a sustainable way. We would not see interest rates rise to the levels as seen in the late 90s but more likely to the traditional levels of around 6%. At this level we would see some pain but only up marginally on what we have now. But I can not see this scenario playing out at least not within the next 3-5 years. Unemployment and a dramatically rising welfare bill is our biggest threat coupled with increased Government borrowings as a result, we actually will have to see a decrease in real wages in the tourism and agricultural sectors as they will be the bread and butter economies of Australia in the next few years, a low $ of around 65c to the $US is essential.

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Now, now careful bunny... that sounds like an intelligent reply with some sound logic.

Completely agree with what you wrote.

Very high unemployment is the one thing that could genuinely cause problems for the property market.
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