Lower interest rate environment

Hi All,

I am good reader of PC. Many people have shared their journey which is good to know. I see many investors have followed buy and hold strategy - both commercial and residential. This strategy will always work for property located in demand areas. However, in last 3 decades, interest rates have come down significantly and not possible to go further down. I suspect interest rate going down was the major reason for property prices going up all these years. But they can't go further down. Look at Japan. Property market is stressed for years.

What's your view for buy and hold strategy going forward?

 

stopped reading. Pack it in mate, rates are never going higher.

*Not financial advice* entertainment purposes only: take on as much debt as you can, buy, hold and borrow against that asset. If you are under 30 years away from death take out a death policy that would cover it.
I didn't realise how easy people have it.... 300k in march would take you to 4.7m in net assets just doing the old buy/hold/buy using interactive brokers to borrow against stocks @1.5%.

 

Yes, one can take more debt due to lower interest rates. But it does not mean prices will rise. I am saying that prices have risen in past in Australia partly due to fact that interest rates were coming down in last 30 years. Since rates have no space to go down, buy and hold strategy is more risky now compared to last 30 years.

 

prices will continue to rise as the asset market will continue to suck the $$'s out of the real economy. meaning people will need bigger wages, more stimulus, lower interest rates and so fourth..

 

This comment hasn't aged well!