Fair point, Fortune1975, and believe it or not I do sympathise with those who are now in mortgage strife, particularly if they feel that they were misled by RBA comments about low interest rates.
My previous post reflected my opinions about various things that I think are absurd. I was attempting to criticise the RBA and a large section of the media, rather than trying to criticise unfortunate mortgage holders. However, at the end of the day (and at all other times), property buyers must accept all the many risks of buying property. When talk of interest rates staying low until 2024 first emerged a long time ago, it was clear to me then that there were many things that could, and probably would, prevent interest rates remaining low until 2024, and there are posts of mine to this effect from that time on other threads. I tend to think that this should have been clear to all, although obviously many people seem to have been happy to ignore the risk that interest rate projections are never carved in stone.
Nobody knows yet whether the RBA is now on the right path, although the RBA seems confident. It will take many months before we will know. In my opinion, I think that the RBA is as wrong now as they were back then when there was talk of interest rates not rising until 2024. One reason for my opinion is that there appears to be an assumption that it is not necessary to allow any margin for unforeseen changes in world events, although there are also other reasons based on economics.I will be quite happy if it turns out that I am wrong about inflation and the RBA is right. If this happens, I will simply adjust and adapt accordingly. But I will remain forever critical of the RBA for, in my opinion, cutting rates much too low during covid, and making comments suggesting that rates would remain low for a long time, and being slow to start raising rates, and for making rate rises that were smaller than what I think they should have been.
In my opinion, any mortgage holders who are in genuine strife should consider seeking advice from their lenders and from relevant financial advisors.
(20min delay)