interest rates
Reply: 3.1.2.1.1.1
From: Brett Burt
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An interesting view has been recently put forward, that interest rates =may stay low for the next 10 to 20 years due to the baby boomers =requiring less money i.e there was a big money squeeze in the 70's-early =90's, now, as the boomers are into 3rd or more home they need less and =less money, lower LVR's. The following generations, X & Y, are much =smaller than the baby boom (birth numbers in western world are generally =very low compared to late 40s,50s, early 60s) so the demand might not be =there in the future.
The boomers also pushed up prices of their parent's properties. This =will not happen for the boomers as Gen x is smaller. Also trillions =will be, are being, built up in super and mutual funds and this money =will compete with itself to get returns therefore making 'the hire' of =money cheaper. So maybe high/low interest rates may not follow the =cycles they have been in since 1940's. And it may be the case that the =capital growth we have seen since the 50's might not happen over the =next 50 years, or at least nowhere near the past growth.
So bite off more than you can chew and then chew like crazy ! Cause I =don't think the 50 year property bubble will grow much more.
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An interesting view has been recently put forward, =that
interest rates may stay low for the next 10 to 20 years due to the baby =boomers
requiring less money i.e there was a bigmoney squeeze in the =70's-early
90's, now, as the boomers are into 3rd or more home they need less and =less
money, lower LVR's. The following generations, X & Y, are much =smaller than
the baby boom (birth numbers in western world are generally very low =compared to
late 40s,50s, early 60s) so the demand might not be there in the future. =
The boomers also pushed up prices of their parent's
properties. Thiswill not happen for the boomers as Gen x is =smaller.
Also trillions will be, are being, built up in super and mutual =funds and
this money will compete with itself to get returns therefore making 'the =hire'
of money cheaper. So maybe high/low interest rates may not follow the =cycles
they have been in since 1940's. And it may be the case that the capital =growth
we have seen since the 50's might not happen over the next 50 years, or =at least
nowhere near the past growth.
So bite off more than you can chew and then chew =like crazy
! Cause I don't think the 50 year property bubble will grow much =more.
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