That's the million dollar question isn't it when and how quickly will interest rates go back up. I think to myself sometimes interest rates will go up very slowly as the banks wouldn't want all the defaults that would happen with the rate increases, but then you hear that a good portion of the banks money is borrowed from American banks and as their economy improves and rates rise the Australian banks will have no choice but to increase interest rates.
So it's really anyone's guess how this situation will play out, one thing is for sure though if you had listened to people like Forged and other real estate agents and purchased property in Perth in the last decade you would be sitting on an ugly loss.
