Will there be a Generation of Investors that will never see a interest Rate Rise.?.

Many people who write grammatically about investing and there are thousands who write about strategic plans that you will be rewarded in the long run,or short term pain for the long term gain,and it's not artificial history that backs up their paid data,, but they never talk about the weaknesses only courage and determination will prevail,so what do others think about if as some people tell me higher up the "Academia" ladder tell me the interest rates for the next few years will stay the same??.

 

Interest rates staying same for next few years is very different to never rising!

 

Interest rates have cycles just like property.

 

That's a long sentence if I've ever seen one.

 

I believe it is very hard to predict the directions of our interest rate because there are too many factors that will drive it. For example few days ago US were saying they "might" increase their interest rate as economy is looking good ahead, the next day they say should remain the same.

But from what I can understand, our economy is still far from being healthy enough to have an increase, instead of putting a time frame on it I will suggest pay attention to inflation rate to look for indicators.

 

They should stay low for the next 2-3 years at least. The global economy is still suffering a lot of economic headwinds so I can't see what would cause them to rise, particularly with mining dying down.

 

Ask Japan

 

We are not Japan...the population of Australia is growing..Japan's is not...its actually declining...

 

My first property settled December 2008.
I saw rates drop like buttered bread and thought nothing of it.

 

And Japan is nearing a situation where for everyone one person, there is only one other citizen to support that person.

 

Inflation figures came in below expectation today, a rate rise is still a fair way away.

 

And that kills internal growth of GDP..this is what a lot of European countries are facing...and potentially China in the future unless they plan now. The downside of this is a very depressed economy....it will be too late if not planning is done.

 

The countries that were next in line with dwindling number of supporters to dependents were Greece and Italy. Make that what you will.

 

Well the population growth rate actual data came in lower than expected. That means slower GDP growth. Would the RBA want to make it worse by raising rates? Inflation is pretty benign, and oil is in price rout for years to come. There's a huge confluence of factors that make rate cuts more realistic than rate rises in the next 2-5 years.

 

Will there be a Generation of Investors that will never see a interest Rate Rise.?
I guess some just got their first one compliments of CBA and ANZ. Not much granted, but still.

 

@The Butler: yes you are right: see this article: http://www.afrsmartinvestor.com.au/p/property/br_more_pain_ahead_for_property_EBE6Fcj4jjdioBIQMc3pnI

hopefully it should clamp down the investor frenzy market in Sydney and Melbourne.

 

Well CBA and ANZ raised their rates to investors by 0.27% and that might be a start.