The trend of rising bond yields and cost of debt has continued in recent weeks. Not only locally, but globally.
I want to start a new thread to discuss a couple of points:
Even if we cut locally, it seems like ~3.5% may be where we stand, nowhere near back to 0.
If this is the case, the property market growth over the medium term will face headwinds, with added housing offsetting the driver for the recent boom in growth.
Does every believe the general population understand that even with some short-term cuts, the cost of servicing a mortgage will unlikely be anywhere near what it was pre-COVID. I know far too many people in their 20s and 30s who are buying properties at just over 20% of their deposit and as long as the bank gives them the mortgage, they go for it. I'm concerned that the interest expense (even if offset by moderate growth) is underestimated by a lot of these people?
