Mean while home owners are enjoying all time low interest rates, if they took out a $300,000 loan when rates where 9-10% and are still making the repayments they where then they would be reducing the principle by an extra $1000 per month.
People buying homes now would of course be factoring in higher interest rates but in the mean time they can make a good dent in the principle of the loan.
In perth we are seeing higher rental vacancy, seems with interest rates being low people are buying their own home as mortgage repayments are less than rent.
There is nothing to indicate interest rates are going to rise in the near future, some indication they may go down a bit but over all we are in for a relatively long period of low interest rates
