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  • Profile photo of darcy13darcy13
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    @darcy13
    Join Date: 2007
    Post Count: 1

    Hi All
    I too have a question that maybe able to be answered here .
    I"m trying to get in front of the market so will need some sort of idea of what 'may' happen going forward
    If we have high house prices , and what appears to an ever increasing interest rates , along with inflation ,what is the likely outcomes ….

    Houses become too expensive , so house prices stagnate or drift lower , but more renters ?
    rents go up as less people buy houses, so have to rent putting pressure on rentable properties prices ?
    Wages go up to cover inflation , giving people more money to rent , but less money to buy ,as interest rates increase giving subdued house prices ?
    interest rates keeps any sort of property growth stagnate while waiting real wages catches up ?

    There is probably a myriad of things that could happen , only thing I do know is that with the US printing money to pay for the war it will produce inflation which they will try and quell with higher interest rates . The last time we had high interest rates we had low house prices which produced a property boom( 1985 ) ( before the bust ) , then we had lower interest rates which gives the ability to borrow more which increased house prices ,but this time I"m a little lost as to what may happen , so if anyone has any idea or thoughts I will be more than happy to take them on board and as always just see what happens
    thanks in advance
    stuart

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