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If... we see a property crash, will you be better off....?, page-6

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hawkers

3,404 Posts.

11/04/16

09:53

Post #: 17469403
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Originally posted by lispingduck ↑

1.24% would be the honeymoon rate right, after the honeymoon what's the real deal rate?

When you say borrow big what do you mean. How many time income?

Vast majority of australian citizens? I don't think a vast majority are up to their eyeballs. There could be a fairly large number who bought in more recently (last 5 years or so - depending on where you are) but I wouldn't think it is a vast majority of citizens. Having said that I don't believe it would take a vast majority of these to default to cause a crash. Poor economic conditions, poor population growth, over building and significant changes to interest rates, either alone or the combined minor impacts of all these could lead to a crash following moderate levels (say 5-10% of all mortgages) of defaults.

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Quick google shows you can get 5 year fixed rates of 1.99% HSBC, 10 year fixed 2.97%...doesn't look like they feel rates are going anywhere dramatic in the coming years.
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