Yes,its the perfect storm brewing.
I have been banned from voicing this opinion in polite company which means it's probably on the money. Your thoughts on survival?
Sell investment property and cash up?
(we have done this over the past 2 years- takes time to turn the ship around)
It is now more apparent than ever that as soon as capital gains on property dry up we are fodder for
1.council rates- these will continue to climb no matter what
2.state land taxes
3.insurance
4.rent defaulters
5.rising cost of maintenance
2.7% in the bank is looking better all the time so add opportunity cost to above.
Eventually the political pressure on the RBA to keep rates down will fail.It was not in the RBA brief to save the housing market but to keep the CPI within a range, so one wonders about the RBA's posturing.Part of keeping the dream alive as long as possible.
In the 1970s crash,the banks owned about 50% of prestige properties allowing their owners to rent - thus things didn't appear as bad on the surface.The big 4 will survive and prosper in the long run.
Main thing is to keep own head above water!
