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Thread: Mortgage rate to rise to prevent credit crisis!

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[quote=APAULT,248033]there is a lot of money sitting in bank accounts as people have been hoarding for fear of a return to the past, but now they are getting more confident they want to invest.  Add to this the growing incomes of urban China and especially all the profits that are not being declared by businesses and we see there is a lot of money available to invest.  The stockmarket and property are obvious investment areas.

People invest in property because they see little risk and big gains.  Are they right?  Probably at the moment because the number of people in each home is quite high while the space is small, and many are not high quality.  So if they have the money most people would want to buy a a property.  In the future youngsters will not stay at home with parents so long, and most likely more older people will wanttheir own place too (but have the relatives nearby of course).

There's not much the government can do to reduce the growing real demand, but it can at least try and keep the speculators out and maybe remove the speculative motivation for buying.  Will they have much effect?  Just a little, but not much as the underlying real demand is so strong.[/quote]

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