I can only hope we are giving more thought in real life to this possibility.
While our National debt, Government that is, is not as bad as some would think.
One of my links, maybe not one I posted, says our personal household debt is 90% of GDP.
It, if true, must have been very much worse not long ago.
The GFC has had an impact on our spending and borrowing, but not all of us, some are exposed to the smallest movement in world markets.
A day, it would seem looking at history,come that see,s double todays interest rates, and maybe near double unemployment.
It maybe decades away,or months.
I see noway out of our housing bubble, other than bust and pain.

The creation of Australia's housing bubble is not because of high or low interest rates, but by the ridiculousness of residential housing being seen as wealth creation rather than providing safe and secure housing for the population, with the bizarre added addition of renters not being seen as assisting in this wealth creation, but as second rate citizens who should fall on their knees with grattitude to be allowed to pay ridiculous rents.

As my said: Australia's housing bubble created by the mum and dad investors. Australia's houses are overpriced.

Let's start by allowing home owners to offset their interest against their tax, as happens in other parts of the world.

Yvonne, rents today are actually cheaper than they should have been, had returns on investment remained on track of the late 70's early 80's.

Back then, rents would return about 10% to the owner, whereas now, 3 to 5% is the norm.

As for our
house bubble, I simply domt think the market will crash. I say this because with rates at all time lows, combined with hand outs for 1st home buyers, anyone who wants a house should have one.

The trouble is, most domt want A house, they want THE house, and that's why so many don't own.

What they do own is a nice car, one or two plasmas and plenty of other goodies, which, along with the $300 to $400 weekend parties, takes away their ability to fund a home.

But once again, as I say most want THE house.

The reality is, $400 per week rents a reasonable house, but buys a crappy one and people have been spoiled with new homes being built simply for tenants.

Yes to Yvonne and in part to Rectub, my thought is that those wanting to own a home, may think lower interest/repayments make now that time.
Unfortunately we are investing in every thing, and always have in houses and land.
Giving both a very bottom value, I see noway that should change.
Rents? without investments, given government retreat from public housing, we would see many without homes.
I am for home owner ship, but affordable not Mac Mansions.
My links did not represent 1% of those that are there to be seen.
And some are living in housing bubbles right now, having paid prices they will no see again.
Sydney is seeing homes of fibro go ,or did, a million plus, position not quality.
Former workers, and the poorest of them, terrace houses bring well above that.
A bubble for all can come over night or in years or decades, but truth is some find theirs every day.
A busting bubble? yes for sure but when?

http://www.smh.com.au/business/australias-growth-straight-jacket-20121010-27c0m.html
A true shame we could not get interest in the theme.
Only that because it may well be looming on the horizon for us all.
I am far from the only one concerned.