Prudential Says ‘QE Forever’ May End With Real Estate Hit | TigerDroppings.com

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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

Prudential Says ‘QE Forever’ May End With Real Estate Hit


LINK

quote:

Prudential’s Silitch said that a decline in investor interest in U.S. government debt could lead to higher interest rates.
“You could have a very quick spike up in rates,” he said. “It would be good for us in many ways, but it could degrade asset values such as commercial real estate.”



I originally wrote the thread as an econ question about the above quote, but I understand now. Interesting article though so I'l leave the thread up.



This post was edited on 9/20 at 8:59 pm



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guttata
LSU Fan
prairieville
Member since Feb 2006
19853 posts

re: Prudential Says ‘QE Forever’ May End With Real Estate Hit


It will happen. Just not on the next year or so.





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
5891 posts

re: Prudential Says ‘QE Forever’ May End With Real Estate Hit


Can't comment on commercial, however at some point all this will come to a head. The two schools of thought are

1. If you can buy where you plan on living long term, especially if homes/land is scarce, do so, take the cheap money, and parlay that against future potential depreciation.

2. Wait it out and pay cash when/if interest rates spike/bottom falls out of the market






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Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
120328 posts

re: Prudential Says ‘QE Forever’ May End With Real Estate Hit


What about renting?





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
5891 posts

re: Prudential Says ‘QE Forever’ May End With Real Estate Hit


See #2





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