If they stay the same then you won't see much difference to what...

If they stay the same then you won't see much difference to what we have at the moment.

Interest rate going down would benefit existing home owner without a doubt but it will also helps investor in property, banks etc etc etc. However, it won't help first home buyer or those looking to get in to within next 2 - 3 year as property price will continue to go up which is not good in my opinion. It will be bad for economy if politician does nothing to stop this level of growth (so it's not about the growth but it's about the rate of growth).

Based on below data, in 21 month prices went up by 35% or at a rate of 20% per 12 months in that period (Jun 2020 - Mar 2022). Now, the graph clearly shows that the rate of growth (i.e. angle of the line on graph) is significant compared to past 10 years (since 2013).

So while, interest rate going down is good in very simple economic terms if you ignore the growth in property (out of control) but it will have it's consequences over long period of time for future generations.

In Australia we had RBA governor who made decision to keep interest rates low for long time and didn't even increase at a rate it was increased in US. Obviously, we have yet to see if new Governor going to do something about it or just keep watching like her previous boss.

I will welcome any move to increase interest rate, which will undoubtably increase AUD rate against USD making import cheaper for Australia which will help reduce product cost coming form outside but sure mining revenue will be impacted at the same time but mines going no where so it can wait while other part of the economy stabilise and they had their run previously. It will also help stabilise or allow at-least 10% correction in property prices which is much needed to help with affordability for new buyers.

The other scenario where interest rate is decreased then it should happen only after some strict regulation put in place to property investors prohibiting them in investing more then 1 property or take away 50% discount to capital gain for property hold more then 1 year and add surcharge where property investor pays federal government on top of stamp duty to purchase second investment property (same as Medicare levy).

It is contagious topic so i prefer not to discuss further to avoid getting off track to WAM !

I am currently working on strategy to exit WAM with alternative investment with high yield and will let you all know if it worked for me and how it works in next six months. If the idea won't work then you won't hear from me.