Just a general discussion here.... Are there any old esteemed members of this forum who had debts in the late 80's / early 90's when rates were 18%. I was a youngster then but remember my parents having their business loan, home loan and overdrafts on the clinics. They had to pay the private school fees etc. They survived the high rates thanks to the profitable business.
If in the next 5 to 10 yrs rates increased to 10% or god forbid 18%.... could you service your debts? (Anz 10 yr fixed rate is around 7.69%).
Obviously a lot of investors would be bailing out and we would see a significant correction in property prices.
A lot of investors will say 'it will never happen'. Anyone who has studied Economic theory in detail could disagree.
Would you sink or swim if the rates rise above 10%
If in the next 5 to 10 yrs rates increased to 10% or god forbid 18%.... could you service your debts? (Anz 10 yr fixed rate is around 7.69%).
Obviously a lot of investors would be bailing out and we would see a significant correction in property prices.
A lot of investors will say 'it will never happen'. Anyone who has studied Economic theory in detail could disagree.
Would you sink or swim if the rates rise above 10%