1985 vs 2016

Discussion in 'Property Market Economics' started by MJS1034, 4th May, 2016.

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  1. barnes

    barnes Well-Known Member

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    The question is did I buy in 1986 - yes I did. Will I buy now - of course not. The only exception is a PPOR, to buy an investment at this price range - complete madness.
    Why? Because rates will not go MUCH lower, like they did after the 80's. They can only go HIGHER from here. I wonder what will happen to all those who bought a million dollar property if the rates will double to 10%. How many jobs do they have to have to pay the mortgage.
     
  2. HUGH72

    HUGH72 Well-Known Member

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    If rates doubled to 10% with current debt levels it wouldn't matter, many wouldn't have a job.

    It would have the potential to make the 90-91 recession look like nothing.
     
  3. barnes

    barnes Well-Known Member

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    Is it possible, yes. It's just a matter of time.