Cheapest and most expensive countries to get a loan?

Cheapest and most expensive countries to get a loan?

Higher Interest Rate is not all bad or all good

If I am a retiree who is not interested with any property investment and have all my money in the fixed deposits in the bank, I would appreciate a high interest rate so that my returns will be as high as possible for me to beat inflation numbers. At the same time, if I am a working professional looking to buy my first property, I would appreciate the lowest possible interest rate so that my monthly repayment is as low as possible and I will not be saddled with too high financial commitment. I still need money to enjoy good food in Malaysia! So, should the rates be high or should it be low then?

Let’s look at what’s happening all over the world shall we?

Info Source: tradingeconomics.com (As at 21st July 2024)

Within Asia, the highest is Iran at 23 percent and Japan at 0.1 percent. Malaysia is right down there within the lowest few at 3 percent Overnight Policy Rate, at 3 percent. The country which many said will overtake Malaysia is Vietnam (some even say already overtaken but I disagree) and their interest is at 4.5 percent.

Even Singapore has a higher interest rate which meant that if you keep your money in fixed deposits in Singapore, you will receive a higher return versus if you were to keep it in the fixed deposits in Malaysia. Japan is meanwhile pushing their people to spend and invest more. Currently, it seems that everyone prefers to keep their money inside the bank instead.

The country where many of my Malaysian friends love to migrate to, Australia has a rate of 4.35 percent which I think is making people think twice before buying that property they want. There are some signs that the rates may drop. We will just have to wait and see what happens because when the economy needs help, then the interest rate would have to be lowered to push people to spend and invest.

UK and the US is almost similar; 5.25 percent and 5.5 percent respectively. Perhaps this is why they are ‘brothers’ on the world stage? Well, one needs to ensure growth continues to happen after they are out of European Union aka Brexit and another has a Presidential election which is all over the news throughout the world. The most powerful nation in the world is electing its next President. Yes, it does seem that the former President may be back.

Now a question for all of you the readers. Do you prefer our interest rate to be higher or lower?

I personally prefer the interest rate to be lower than when I first started my property investment. I really do not wish to pay such a high percentage. It could increase my repayment by 50 percent or more from today’s rates. I know, I will lose if I have money in the fixed deposits but perhaps that is an easier thing to do since I could also think about moving them into some high yield REITs? Here’s one latest article on REITs too: REITs Malaysia with selected ones and also the best options as per research house

The only thing with a lower rate is that people may prefer to put their money in some other currency instead. That’s why it’s not the best for ringgit versus many of the countries with higher interest rates versus us. Cheers.

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