The Market-What will happen next?

We are not secure against any changes in the Worlds current property market which is still trending upwards.

Interestingly Australia has forecast a interest rate rise next year. Our market tends to sync with our neighbors. Yet there is no mention of a likely rate rise in our local market. Why is that? Surely someone must take on the responsibility of informing our potential buyers that there is an element of risk in the high borrowing levels First Home Buyers find themselves in currently. There appears to be little caution in fund allocation with easy access to Bank funding. Any likely adverse event is not being thought through.

What if in the likely event rates rise? where is the safety valve should this situation arise and it will! The obvious outcome for some is unafordability and the likely need to sell quickly at below market prices or face the real possibilty of a Mortgagee sale. It is not a real Real Estate world we are living in currently but a fantasy.

How secure is your current financial Position? When the market adjusts and it will, what will be your position of afordabilty? We are in a market unheard of previously with prices rapidly rising and panic buying. Are we at the top of the property market cycle and if so what will happen next? Time will tell!

Nb: These comments are mine and mine alone and not neccessarily held or endorsed in any way by Ray White Real Estate Ltd LREAA (2008)

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