Property Bubble.....Finished?

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killeoin

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A thought just hit me, interest rates now look set to reach 3% as everyone seems to be suggesting by the end of the year and with oil causing massive inflationary problems for the ECB i could see rates go the same way as the other side of the Atlantic in the next year or two. My question is, Will this finish the property bubble once and for all?

I have to say yes, and I believe its in our own best interests, Japan anyone?
 
The problem with that post is that there was no smiley so I'm actually afraid you were serious!!
 
killeoin said:
A thought just hit me, interest rates now look set to reach 3% as everyone seems to be suggesting by the end of the year and with oil causing massive inflationary problems for the ECB i could see rates go the same way as the other side of the Atlantic in the next year or two. My question is, Will this finish the property bubble once and for all?

I have to say yes, and I believe its in our own best interests, Japan anyone?
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If they go up to a about a 5% base rate then yes, prices will stagnate\decrease as peoples spending power will decrease. I think most buyers can handle an increase to a 3-4% base rate.
 
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