Which is the lesser evil : Interest rate rise or Price drop

[lifeafter41]

Have noted in one of the thread that June 2014 home sale price continue to trend down another 1.8%.
Have also noticed in the paper that banks are offerring FD rate higher (BOC at 1.35%, UOB I think also offering higher). Is interest rate going up soon?.

Which is the lesser evil, or worst, both comes in. Higher interest rate and home sales price dropping.
Those buy for investment or rental, jialat!!. Those with low downpayment, lagi jialat.

What do forummer think?.

 

[sochi2014]

it depends on the country economic policies. Gentle price increases helps economic development!

 

[krafty]

price drop acros the board will be the lesser evil if i am to choose, raising interest rates is see as trapping foreign investments already here, which they have to pay higher for borrowing costs.

 

[hofmann]

price drop is paper loss
interest rates up = monthly repayments up, but many will be locked into old lease with existing tenants.

 

[hockbeng]

have noted in one of the thread that june 2014 home sale price continue to trend down another 1.8%.
Have also noticed in the paper that banks are offerring fd rate higher (boc at 1.35%, uob i think also offering higher). Is interest rate going up soon?.

Which is the lesser evil, or worst, both comes in. Higher interest rate and home sales price dropping.
Those buy for investment or rental, jialat!!. Those with low downpayment, lagi jialat.

What do forummer think?.

those holding cash the most jialat

 

[numero uno]

Have noted in one of the thread that June 2014 home sale price continue to trend down another 1.8%.
Have also noticed in the paper that banks are offerring FD rate higher (BOC at 1.35%, UOB I think also offering higher). Is interest rate going up soon?.

Which is the lesser evil, or worst, both comes in. Higher interest rate and home sales price dropping.
Those buy for investment or rental, jialat!!. Those with low downpayment, lagi jialat.

What do forummer think?.

haha. plain ecnomics sense mandate that both would happen. when price crash and loans are defaulted it means there is a sudden shortage of cash and banks need to secure more cash holdings by offering higher inetrests rate, leading to higher lending rates, ie a vicious cycle, oevr and over. A big crash coming. protugal banks are in dange rof collapse and europe/USA have not recover. China banks are discovering there is a huge lots of bad loans and cheating in almost all banks after president Xi clampdown.

 

[Leongsam]

What do forummer think?.

What is detrimental to one individual is advantageous to another. Those who have term deposits will welcome interest rate rises with open arms. Those who are taking out a mortgage will not.

Same with house prices. Buyers and sellers will have different opinions.

 

[frenchbriefs]

What is detrimental to one individual is advantageous to another. Those who have term deposits will welcome interest rate rises with open arms. Those who are taking out a mortgage will not.

Same with house prices. Buyers and sellers will have different opinions.

interest rate rise is usually a sign of rampant inflation,those with term deposits should be jumping bedok reservour.

 

[jw5]

Not for those who have millions in term deposits you moron.

interest rate rise is usually a sign of rampant inflation,those with term deposits should be jumping bedok reservour.

 

[Leongsam]

interest rate rise is usually a sign of rampant inflation,those with term deposits should be jumping bedok reservour.

Interest rate rises are to prevent rampant inflation. I have averaged close to a 7% return on my term deposits over the last decade to keep inflation below 2%. It's been a great run for the NZD.

 

[frenchbriefs]

Not for those who have millions in term deposits you moron.

they should put it in TIPs instead.

 

[jw5]

There is really such a thing as having enough money. It's hard to understand for those with establishment mentality and easily influenced by the MIWs, but there really is.

they should put it in TIPs instead.

 

[frenchbriefs]

There is really such a thing as having enough money. It's hard to understand for those with establishment mentality and easily influenced by the MIWs, but there really is.

wrong u can never have enough money,that is ridiculous......people look at money in terms of wealth,of luxury or indulgences or leong sam living the life of luxury in new zealand but it goes beyond that,money is power.....money can destroy countries,money is defense and protection,we need money to protect ourselves against foreigners,we need money to defend ourselves against china,india.we need money to defend our rights,we need money to fight for democracy...singaporeans have no money,thats why they are at the mercy of MIW.

 

[Runifyouhaveto]

Interest rate rises are to prevent rampant inflation. I have averaged close to a 7% return on my term deposits over the last decade to keep inflation below 2%. It's been a great run for the NZD.

are interest incomes from fixed deposits and bonds taxable in NZ? if yes, many % ?

 

[jw5]

Your point is noted but please read the part in bold again.

There is really such a thing as having enough money. It's hard to understand for those with establishment mentality and easily influenced by the MIWs, but there really is.

wrong u can never have enough money,that is ridiculous......people look at money in terms of wealth,of luxury or indulgences or leong sam living the life of luxury in new zealand but it goes beyond that,money is power.....money can destroy countries,money is defense and protection,we need money to protect ourselves against foreigners,we need money to defend ourselves against china,india.we need money to defend our rights,we need money to fight for democracy...singaporeans have no money,thats why they are at the mercy of MIW.