T4P, this means you must think that the RBA will be changing their inflation target of 2-3%, that has been in force since 1993.
Australian property values are highly dependent on cost of money. Overall the LVR of Australian property at an aggregate level is circa 27%.
And the cost of money broadly equals Inflation + Real GDP growth rate + bank margin.
Under a high inflationary period, If the RBA holds the fort, the mortgage belt suburbs are going to get BELTED, particularly in the non-commodity cities of Sydney and Melbourne.
- Forums
- Property
- are property bears an edangered species ?
T4P, this means you must think that the RBA will be changing...
-
- There are more pages in this discussion • 13 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)