How To Prepare For Rising Interest Rates - Pumped on Property

Abstract

According to the RBA interest rates are on the rise. They are on the rise to bring inflation back into a normal range. Once they have brought inflation back into a normal range the RBA is saying to Australia's major banks that they will begin cutting rates again, as early as July 2023. While most Aussies have gotten used to interest rates in the 2-3% range, history shows us that interest rates in the 4-5% range for manageable by most Australian households. My first interest rate as a 24-year-old investor was over 7%. As investors, it's important to understand the short-term media cycle and how it impacts sentiment and ultimately property prices. The idea that a 1 - 2% interest rate rise will affect property prices longer term is insane - it won't. I believe that once rates begin coming down again we will move into another boom phase of the property cycle in markets like Brisbane that have yet to see significant growth in this current real estate cycle.