from reading warnies past posts i get the impresion he thinks Australians are all on $100K+ a year jobs with a few hundred grand in shares and other investments..
It's not suprising at all that the first people to be hit by the start of interest rate rises are the poor people (as he puts it)
naturally it will hit that end of the market first, but as the rates rise it will also affect more and more wealthy people as they have borrowed more so will get hit just as hard later.
historically rates have moved beween 7% and 18% on mortgage repayments.. currently we are at 9.5% ~ a lot more to come yet.
See warnie 90% of the wealth is held by 10% of the population, its the bottom 90% thats going to make all your house prices fall, no one cares if you can afford to pay the interest, because why buy your house when the "poor man" next door is selling at half price.
