Yeah, I am wondering the same thing about the tariffs, it seems like a reasonable assumption and their economy certainly can't handle rate rises. Evident by the 50bps in September, pretty aggressive considering everything.
Yep, we certainly are in a bubble (if you ask people if they think property prices will fall 95% will say no, which says something hey). We have a much higher rate of our wealth in property than anywhere else, which causes the feedback loop into prices, but when people simply can't afford a loan there will be issues. If commodities outperform our economy could get a good jump out of that, we are very tied to them.
40-50% seems within reason yes, everything is so overpriced here and specs just haven't been able to keep up over the last few years so in a way I'm looking forward to a reset so we can return to reason in the markets. Squeezing blood from a stone at the moment.
I do feel for the people who are already on the edge with their mortgages. I've heard so many people talking about how relieved they are with the recent cut, and I can only see the possibility of them rising much higher. And yes, it sucks enormously that we can't lock in 20 year fixed rates, but hey at least we have negative gearing... lol
