1. cash rate is different from bank lending rate. always keeps getting spoken about 3% interest rates by july when you really get it for 5-5.5%
2. how does 14k gov grant provide stimulus when they take $20k+ in stamp duty and costs on the average home? these first home buyers need 80K minimum deposit to qualify for a loan these days. What % of buyers tick all the boxes to drive the market up.
3. If property does go up then what will happen when the economy turns and lending rates power up to 8-10% to control the rampant inflation.
So where going to have $500-550K average properties in the next 2 years with rates above 6% as the economy recovers. Imagine the repayment scenario on that! Bring on wage increases but then govment will tax us more to refill the coffers.
You can't ignore all the risks coming over the 12-18 months
