The Reserve Bank of Australia has admitted that property prices will punge as interest rates rise repeatedly (as they always had to do ).
Now that the inevitable is coming to pass in line within all of our predictions, what will become of the Australian Investment sector ?. Well, from our perspective, things could never be better, as people flock into an asset class that always rises, and at the very, very worst, just flatlines, prior to the next big rise.
This article in the Australian Financial Review makes it very clear that the Reserve Bank of Australia has warned a 15% drop in house values, whilst Westpac is saying 14%, with the ANZ Bank talking of a 10-15% drop as interest rates rise back to 5.5%, which is below where they originally were.
This correction had to happen, and so the timing was always the key. Will the first rise occur on Tuesday ?.............we shall see.
In the meantime, there are another 16 cars that we have just added to our ever growing list of fast market climbing Collectible Cars.