Rate cuts and surging house prices: ‘How the hell does that work?!’
There’s two separate but related stories in all the newspapers this morning.
Story #1: Interest rates are at historic lows
Story #2: Property prices are surging
And it’s got Ross baffled.
“How can that make any sense?” he asked Burnso this morning.
“So I can go to a bank today and say ‘I want to borrow some money to buy a house, how much will that cost me?’
“And then they will respond ‘Virtually nothing’, and I’ll say ‘That’s great, because I’m going to go buy a house and make an absolute motza
“Surely that is a house of cards?”
The boys called on Herald Sun finance expert Terry McCrann to make sense of it.
He did his best, before declaring it is a “weird, weird world … this can’t last, it inverts reality”.
“None of this is going to last.”
Click PLAY for the full chat
(Photo: PETER PARKS/AFP/Getty Images)