The argument for the RE bull is that as economic downturn the Reserve Bank of Australia and major bank will cut interest rate further to encourage borrowing. Unfortunately in current economic downturn there are overweight with already bad loans and news loans only goes to more buying RE which can be considered bad loans. In fact new loans for business in an economic downturn are almost bad loans because no viable business projects.
So cutting interest rate is not a solution for RE loans or will save the RE market in an economic downturn with an already overburdened household debt.
