Interest rates are rising globally, yet the rise hasnt really surfaced in Australia YET.
Anyone that thinks low rates are here forever are delusional, these same people follow the mainstream view which is always incorrect. Regardless of what the RBA do or don’t, the banks will need to raise rates shortly as the global bond yields rise. Our banks follow the bond yeilds, not the RBA. So watch the 10yr bond yields globally as this is the canary in the coal mine with the direction in rates. The majority will get caught, like always.
Property will continue to correct down well through 2020+ IMO as all markets move up and down. Trying to negative gear a falling property market is financial suicide, which many will get caught up in unfortunately. When rates simply ‘normalise’ back to historic averages, it will be a private debt blood bath, and that’s just with rates going back to an average of 7-8%.
