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China has increased the interest rate twice recently, if you are familiar with US situation, we can see the similar things are happening in China:
Step one ) Very low interest rate, people are buying properties crazily;
Step two ) Property price skyrocketed, a lot of people are sucked into the market and nobody belive the price will go down (just like the current situation in China and Aussie);
Step three) Interest rate increase quickly and sharply. Some investors can't afford the interests, some owners also can't afford the motage.
At some point of time, the market gets crashed.
The intesting thing is Aussie relies too much on China (just like Europe and UK rely on US), so in this year or next year, China's market will firstly get hard landing, and soon Aussie's market will be seriously affected.
I do hope this would happen the later the better. |
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