Final bullet into a dropping property bull?
Floating rates almost breaching 10% (Westpac 9.95%), and one assumes fixed rates likely to head higher in sympathy. Has the the exit sign just begun to flash? Are overleveraged investors edging towards the door?
If we see a continued trend down in net migration, and possible mini recession next year - driven by dual figure interest rates and an over valued Xrate...the slump will finally bite!
If interest rates stay where they are and cap growth drops below 10%,...hmmme how likely is that in the near future ; ), then a big reason to invest for leveraged cap gain disappears, and capital loss looms.
Let the fun commence!