Falls in IR should help alleviate the property mkt, but if IO and by extension coking coal stay at these levels for 6 to 12 months property slide is going to accelerate despite rate cuts that come as a result. Having a job is more important than having a low interest rate. Additionally rates are already at historical lows. People are struggling because of the size of the debt, not the cost of capital.
Melb is stuffed NO MATTER WHAT!!!! Worst city to buy a resi or investment property in Aus at this particular time.
I think the next two to five years could provide a very attractive entry point for resi property. It's been slowly sliding in nominal terms, factor in inflation and the falls in many areas are not insignificant.
Rapid declines in mining investment will severely impact the economy. Non essentials are being let go en masse at FMG and BHP atm. Some are leaving in tears.
Need the US to stop printing currency so the AUD will fall.
