What happens in negative IR environment?

I’m not being fooled by anything. I’m making the point that it’s indicative of the trend and that those rates are available. Once your portfolio gets big enough diversity of lending options can not only become necessary, but smart.

- Andrew

 

Just different criteria, maybe a little tighter, but very doable. I still don’t see your point?

- Andrew

 

My point is a lot of investors are more likely to get 3.3 to 3.5%....I have done this for many year and have bought over 32 properties...and all is not what it seems ...dems how it rolls...

 

I would luv that ....that would add another 50K to my income for another 10 years. In 8 I will be able to access my super....

 

Lately that margin has been at the lower end of spectrum of around 2%

Banks operate on lending margins everywhere,
I wonder how deep NR must be for that danish bank to offer a home loan on 20 yr fixed -ve50bps.

 

thesackedwiggle,would you have a link to where you read that lower 2 percent ..??..

 

Maybe for the cheapest loan about 2.99% ... RBA rate is 1%...but most have margins of 2.25 to 3.25% on average.

 

CBA had a net interest margin of 2.1% in their recent results.

 

What do you think it will mean for wage inflation especially in an environment of exponential automation?

 

Not exactly 2 but at lower end of margin spectrum sash mentioned,
I think I saw it in recent RBA chart pack, I will post it here if I find it

 

Are you guys able to see the image in above post?

 

No,but thanks for trying..

 

sorry mate... not sure what happens to images, it appear fine in edit mode
@Simon Hampel any pointers?

 

@willair
let me try other way

 

Note that is net....the question is what is net...mine was quoted on gross...

 

Wage inflation is headed down....we are in a delfationary environment on some assets...but property and shares will continue to grow albeit more slowly.

This is a result of Baby Boomer retiring as they were the primary consumers...

 

Initially there might be a pop in shares due to capital flow in search of yields but soon lack of growth due to spending deflation(aka wage deflation) will catch up earnings growth and thus price.

Just curious what's the rational for shares and property(post initial capital flow) rise in a sustained wage deflation?

 

Money will move from very low interest bearing fix interest to shares and property......why would anyone earn 0.3%...happening in Europe....but having said that the new norm for shares could be 4-5% per year.

Would be better to have a mix of resi property also.

 

They said the same thing about all sorts of corporate bonds and they have all gone negative.. besides isn’t the danish bank is offering them to ppl