Re:The Era of Very Low Inflation and Interest Rates May Be N...
by fergie on Friday April 27, 2018 @05:02AM
(#16939377)
Yes, put property prices have shot up PRECISELY BECAUSE INTEREST RATES ARE SO LOW. When interest rates and inflation are low- asset prices such as property go up.
High(ish) inflation/interest is a really good thing for workers because although repayments on their loan may briefly be high they decline in real terms at a much faster rate. The best bit is the principle declines at a much faster rate too- meaning that a worker can in fact pay off a mortgage in a decade or two.
High(ish) inflation/interest is a really good thing for workers because although repayments on their loan may briefly be high they decline in real terms at a much faster rate. The best bit is the principle declines at a much faster rate too- meaning that a worker can in fact pay off a mortgage in a decade or two.