Now, I know this might be a little controversial. And before I get into the nuts of it I will say openly that I am not a home owner, and investment property owner or a commercial property owner, although I have run numbers on all of the above.
To the point, I am getting a little tired of everyone - especially the media who play it up like its the end of the world - whining about rate rises and how they add an extra $23 to the average Australian Mortgage every month. Yes it is a bummer that you to pay more. But one of the things that I learnt pre-twenties is that when you decided to by a house, when you decide that you can afford it, when you run your numbers, make the decisions on a mortgage rate of 10 or 12%, not some hypothetical-dream-land-official-rates-are-going-to-stay-at-3%-for-ever predictions. The sub-prime crisis was a pure result of a vast group of people all taking out mortgages at rates that will not be able to afford in the long term (yes i know there is more to it than that, so please don't argue this point). I know the problem is not as bad over here with foreclosures and all that due to demand greatly outstripping supply. But I am just over hearing people complain about this issue, rate rises are necessary to keep our economy in check, and if you haven't made realistic forecasts and budgets for your own financial situation. It is your own fault that you can't afford your new payments.