From80, knowing your history is part of the process of not...

From80, knowing your history is part of the process of not allowing it to repeat.

This is were the RBA is miles ahead of the Fed and others and deliberately raised rates to slow things down and is now lowering rates, particular for housing to make it more affordable.

as it is expected rates drop to 4% for housing, the average loan of $300k will only cost $12,000 pa or $240 a week, an amount that is more than affordable. Combined with the shortage of housing coming on line and the high rents, and combined with the high transaction costs, takes some pressure off the need to sell.

As to the need for deposits, this certainly will mean that some will need to weight a little longer, but this combined with with those that do have the deposit but not the confidence will just create pent up demand over the next few years.

This is why i dont beleive the 40% crash that some are predicting will occur as the RBA has somewhat reduced the pressure. To compare to the US is not comparing a similar environment or set of circumstances.

As indicated the reduced interest rates will prvide that additional return to exisiting investors to cover the shortfall in growth.

But again we are just quibbling about price and timing.