slappi, things arent looking that bad either.The lowering of...

slappi, things arent looking that bad either.

The lowering of interest rates has allowed people to stay where there was potential for them to sell out and rent. The high rent, and in many cases, equal to if not greater than the repayments means that 'swapping' will not result in any great benefit. The lower rates is proably causing people to save a little more and effectively pay off the mortgage faster ie 'saving for the rainy day'

While unemployment will rise, it seems it is going to effect the low income and the low skilled more so and by deduction these people will be more likely to be renters.

While the market may soften, and there will be 40% drops in isolated locations, it wont be the wholesale carnage experienced in the US were some posters here beleive they can walk up to any house in the suburb of their choice and make a silly offer, only to have the owners greet it with glee.

Good properties in good suburbs will not be as avaialble as some think they will.

Also with there being potential for inflation to rear its ugly head, price of housing can only increase in line with the level of inflation as property tends to be a very very good inflation hedge.

Agian interested in what the 'perma renters' strategy is if house prices dont fall to their 'expected' levels. Are they going to continue to rent waiting for the next recession, buy now and become so called 'debt slaves'