In terms of watching I'm adding to Bellevue on pullbacks as well as C2FHA which is a ASX listed bond paying 4.25% + 3m BBSW so approx. 8.40% interest quarterly.
Yeah It's an interesting time for property, I know in the states most people have 30 year fixed mortgages. Compared to Australia which is a blend of a few years fixed + variable so interest rates are more of an impact here but still a 'lag' in monetary policy transmission. I agree regarding your point on cash sales, 25% is probably double what I'd have guessed.
I think baby boomers will be driving inflation higher (if in their shoes I'd do the same, zero resentment), many will be more comfortable spending the interest + a bit of the savings as opposed to solely eating into just the balance with flat savings rates. I think this age class will gravitate towards term deposits again as the search for yield is less of a concern, might lead to outflows in equity markets one would imagine.
