Article Abstract:
The prices of houses in Australia may not be as sensitive to interest rate as the price rises are unexplainable due to the 30 year low interest rates and lower unemployment rates. Certain idiosyncrasies like concentration of the population in a handful of big cities and the sharp growth of two-income households with female participation in the work force has also helped to raise the demand of housing and hence the rise in prices.
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Article Abstract:
Rise in the interest rates in the Australian economy do not have a great impact on its housing sector. A stress testing of major deposit taking financial institutions by Australian Prudential Regulation Authority, led to the conclusion that even if there was a sharp rise in mortgage defaults and housing prices fell by 30 per cent, no institution would fail or come close to failing.
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Article Abstract:
A right mix of shares, fixed interest, and property is to be chosen to suit ones style or strategy. The right mix depends on age, likely longevity, the trade-offs between risk and return, tax situation and other criteria.
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