k8--we do have one thing in common with europe,usa,britain the need to stimulate business to borrow, small business is the engine of every domestic economy and that is the primary focus,the usa and europe are enjoying increased exports and stimulus for investment,the financial systems of europe the usa and australia are very, very different as is our exposure to bad forms of debt from o/s borrowing.
housing is not the driver of economies ,really its just an indicator of overall economic management,and for the life of me i cant see int. rates moving much beyond 9% for the next couple of years unless wage growth forces an inflationary measure by the rba.
given material cost of construction,labour,govt charges etc plus the cost of greenfield or redevelopment,please show me how the cost is likely to drop,house blocks have already halved in size to address the economics of development,and should the rba set rates at 0% even this does not equate to significantly lower retail rates it is merely a stimulus to keep the financial system going ,so they can trade out.
you probably do the same thing at your home but use mastercard to smooth out the bumps,it all has to do with supply ,get that right and then demand will follow with growth
