Of course not. Taking account of the current trends... It's more likely we're going to sink down Turkey-Lebanon style or, even worse: Venezuela-Zimbabwe style.
Yep, banks get to double dip. They now get paid more interest from the central bank, plus they will charge borrowers higher interest for loans.
I didn't even get that! ScoMo needs to GoGo. Replace him with some other half-wit, got to love the illusion of choice.
What you will find is only tiny tiny tiny minority of mortgage holders are in potential pain now or will be. But the headlines of media is heavily influenced by the views of the "want generation" so have outsized influence on headline. 80% of people with mortgages or own the home outright reads these headline and thinks for a moment "Yike that must hurt" than reads the next headline without a care. Of course when property price fall, people spend less but the idea of SHTF is unlikely. Exception been "this" is occuring to the individual at the moment or soon likely ie job loss, brand new maxed out mortgage with less than 15% deposit..... But this is true even in the boom times https://www.rba.gov.au/publications/bulletin/2010/jun/1.html#:~:text=The estimates of turnover from,of dwellings (Graph 1) According RBA 500,000 property are sold per year (new and exisitng) Only 5% of of mortgages are less than 0 to 2 year old, first and/or investment/upgraders/downsizers -> 100% concede they could get into negative equity but majority of them bought in a BOOM or or soon after the Covid Crash and took huge risks! Only 15% (20% if 1 to 2 years above is incldued) of mortgages are less than 2 to 4 years old, first and/or investment/upgraders/downsizers. Likely only losing thier job will stress out these mortgages 30% of mortgages are 5 plus year old. Maybe losing their job will stress out these mortgages but likely sell for decent profit even in a declining market and take a breather, 50% of mortages are 10 plus years old. Anyone selling these mortgages will make a motza even at the peak of housing price down turn and could go on a holiday and still have enough for a new depsoit when they get a new job
TLDR as always employment and consumer spending keep the machine rolling. I’ve already noticed consumer spending down, now it’s all about how private sector fares and whether employment can stay up.
I didn't see the tabloid 6pm news or "A Current Crapolio".....but no doubt they led with the interest rate rise starting with old mate "Blow Hard" reporter standing in Martin Place reporting on the 50bps rise, then cutting to some Miss Bimboalot talking to a family of 4...... Mum & Dad and 2 under 10 ankle bitters in Penrith who whilst standing next to the 2021 4WD and 20 foot Quintrex cry poor and don't know how they'll manage given the 1/2 % rise in rates.....The camera tightens on Mum who is starting to tear up who blames the Govt for now having less money per week to spend and now only being able to see the manicurist once a month and dine at Panthers twice a week now.
