Hi Steve In actual fact mortgage rates were commonly up to 21%...

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14/05/22

13:12

Post #: 61407697
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Originally posted by Stevej1979 ↑

Everyone here will have an argument that validates their bias towards the property market.

Cheap money been around for so long fuelling bubbles, it's become the norm. To argue that an average interest rate of 6% will not impact property prices is ludicrous. To think we won't get there again is just as insane.

High interest rates of the early 1990's was around 16%. It wasn't Property Armageddon back then because the market had been growing proportionately for the previous decades. People had not borrowed beyond their means and subsequently weathered the storm.

As it stands for alot of the "have it all" generation of the last 10 years, most have borrowed as much as the banks will allow under the most ideal interest rate conditions possible. The RBA has tried to keep the plates spinning for aslong as they possibly can. Remember 6 months ago when the narrative was "we won't have rate rises until 2024.. maybe late 2023.. if we decide". The final keep calm and carry on trick they had in the bag. The game is well and truly up for the RBA. When the fed raises and continues to raise we will have to follow suit. Protecting the value of the aussie dollar will eventually outweigh the billions of inflated value that will be wiped off the property market.

People's perspectives are skewed and beliefs based on a set of conditions that will not run for the next 20 years until the debts are paid down.

High interest rates will not be a 6 month storm that blows over and act as a reset for the bubble to start again.

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Hi Steve

In actual fact mortgage rates were commonly up to 21% for a house loans and there was a queue at the door to get them

There was a silver lining as I was getting 9% return on a savings account
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