2 Jun 2022
Australian Residential Property: Rising Interest Rates
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The definition for an asset price crash is a fall of 20% plus since recent peak.
For 30 years residential property prices in Australian capital cities have failed to crash, corrected yes but no 20% plus fall in the asset price for residential property.
The recession in 2020 was expected to deflate residential property prices by a forecast 20% plus but it failed to deliver.
Click for chart.
We have a question.
Will this time be different with bond markets forecasting that the RBA will lift the Cash Rate to 3.0% in the next two years which would mean a standard variable mortgage interest rate of 6.0% per annum?
Remember, remain invested according to your appetite for volatility and when fear and panic take hold, react by buying more quality assets at discounted prices.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.