To be sure, there are stiff headwinds facing Australia’s housing market over the next few years, including:
- The massive roll-over of interest-only mortgages into principle and interest (raising repayments by 35% to 50%);
- Tightening lending standards arising from the banking Royal Commission;
- Rising bank funding costs; and
- Labor’s negative gearing and capital gains tax reforms should it win the next election.
