There’s a lot of talk in the media about prices dropping and the Australian Property market being in a bubble. Well, rather than worry about media hype and headlines, let’s have a look at the 3 factors that cause property prices to drop: Rising interest rates – causing affordability issues. This was a major factor behind the subprime crisis. Thankfully, Australian lending standards are far stricter. Even if you go for a loan from a bank at an interest rate of 4.5% for instance, the lender will often judge your ability to borrow as if interest rates rose to 7% ...