There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
In an era when central banks are discussing negative rates on bonds and bank reserves, a sharp upturn seems unlikely.
Unlikely but not impossible.. I believe it will be the bond market that moves interest rates up.
Lending is going to be perceived as higher risk and greater returns shall be sought on the funds leant.
Quote:
What if interest rates stay at 5% for the term of the loan - 30 years? Would it be a good time to buy now?
It would be, but it is a hypothetical scenario, no one knows for sure if interest rate stability is possible in an ever changing global economic scene. Hypothetically, yes. Likely, probably not.
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Just a simple question. Would this be the lucky time to buy if interest rates stayed below 5% for the next three decades.
Will following generations point at GenY and say "Lucky Bastards"
At a basic level not impossible, even when money is devalued at 5% pa. All one needs is "compulsory" savings.....oh yes, we have them! Our money is taken from us and then we get the blessed joy to borrow it back a pay interest on it.
I think we've had had this argument about the virtues of trying to buy a house in the 1980's?
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
If rates stay below 5% for 30 years, as they may, then yes, buying a home that you can afford without too much demand on dual wages would be a good thing to do. Problem is prices are likely to fall more yet and so waiting to the true bottom is also important if you are thinking financially.
If you want a home and can afford it, it is always the right time to buy. If the value falls, you do not care, as it is your home, first and foremost. So, buy now, maybe lose some capital, maybe not. Just do not buy now to make capital gains only as it is just too risky at the moment IMO.
At a basic level not impossible, even when money is devalued at 5% pa. All one needs is "compulsory" savings.....oh yes, we have them! Our money is taken from us and then we get the blessed joy to borrow it back a pay interest on it.
I think we've had had this argument about the virtues of trying to buy a house in the 1980's?
Well rates have stayed low around 5% before for an extended period of time, so yes it's very possible.
Our good luck or bad luck will be determined by the events of the future, which are outside our control, but we each need to predict them to navigate our way through life. Or another way of looking at that is that life would become easier if we were able to determine what future interest rates were likely to be.
So would a home buyer now be considered "lucky" if rates continued to stay low for an extended period, and alternatively if they did rise how "unlucky" might a homebuyer get in the future. Just a little bit less lucky or a lot unlucky?
I thought that it was a fair question. Future interest rates make a difference to a home buyer.
Well rates have stayed low around 5% before for an extended period of time, so yes it's very possible.
Our good luck or bad luck will be determined by the events of the future, which are outside our control, but we each need to predict them to navigate our way through life. Or another way of looking at that is that life would become easier if we were able to determine what future interest rates were likely to be.
So would a home buyer now be considered "lucky" if rates continued to stay low for an extended period, and alternatively if they did rise how "unlucky" might a homebuyer get in the future. Just a little bit less lucky or a lot unlucky?
I thought that it was a fair question. Future interest rates make a difference to a home buyer.
Well there's no good or bad luck. Luck has nothing to do with it. It's Central Bank and Government intentional policy that creates the instability. Mature markets didn't vary in the 19th century.
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
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