How low can fixed rates go?

With the RBA at 0.5%, and they say they are not going lower, how low can fixed interest rates go?

What margin do banks need on fixed rates?

Leading to, what fixed rates would be a reasonable gamble, for OO or IP, for 1-5 years??

 

In theory interest rates can go below zero. That includes fixed rates.

 

I recall a Danish Bank offering negative interest rates just over 6 months ago. Here's the article: Danish bank launches world’s first negative interest rate mortgage

 

RBA is at 0.25% already

Here is some short term outlook
The ASX RBA Rate Indicator provides a market monitor for Official Cash Rate expectations in Australia based on potential RBA interest rate changes.

 

Hi all,

With all of the commercial, is it commonly bought based on interest rates ? i know there is other factors such as location, strength of tenant, lease length.

We usually see an agent quoted 5% return on investment etc. and with the interest rate hitting almost 0%, can commercial price still goes up ? the only way i can see this going up if there is enough desperate people out there to bid the return down from 5% down to 4%,3% or lower.

Is this means that we are reaching the ceiling for capital gains for commercial ? or residential as welll ?

what are your thoughts on this idea ?

 

commercial is a no go, Tenants are refusing to pay rent with the government saying for the landlord and tenant to work it out, not sure what upside you are seeing in commercial property.

 

well that's my point.

it looks like it is reaching a ceiling, and it wont go up any further.

in saying that, i have a commercial, and my tenant is doing work for goverment and not affected by this shutdown, so business as usual.

what i am try to gauge here, what other factors that will cause price of commercial to increase (apart from the % return per annum).

are we reaching the end of bubble ?

 

well, what always increases prices, demand.

I don't see much demand in the foreseeable future.