STT Week end 21st April 2023, page-15

Finally, someone else said it...
Money has a price....
We basically have a generation that doesn't comprehend interest rates...a decade of free money, which has totally distorted expectations of property and the stockmarket...
Finally....the markets will be "real", pricing in cost of funds and making folk research rate of return.
What has been overlooked constantly is that the market doesn't raise capital for free.....the cost is 6%.... the going rate for brokers to clip the ticket.
Hopefully, though I am not optimistic, is that any tempering of markets and increased effort in getting a return will bring back to earth the relentless greed that that has become engrained in the investing society.
Bring on a normal interest rate regime....do I feel sorry for mortgage holders hit by rises?, not really, the market was distorted and folk should have been more aware, though, as I said, there is a new generation that doesn't comprehend....I do feel for renters, who end up copping a reaming to pay for the reckless speculation....a very uncertain outlook awaits us