Recently, the European Central Bank announced a rate cut and restarted QE, which is the monetary easing policy. The ECB interest rate was originally -0.4%, but now it has dropped by 0.1% to -0.5%.
negative interest rate refers to the interbank market lending interest rate. can also be understood as the interest rate of the central bank in commercial banks, not the deposit interest rate of residents in commercial banks. Residents still have a certain interest rate for deposits, and they will not lose money as many people interpret. However, according to the current trend, it will be difficult to say if interest rate cuts continue in the future.
If even deposits are at negative interest rates, people with low funds will choose to withdraw cash and put it at home and change it to cash transactions. There is still no way to use cash for large transactions. Central banks in various countries are now promoting paperless transactions. If achieves completely paperless transactions in the future, negative interest rates for residents' deposits will be completely possible. Of course, this is not a good thing.
monetary easing and negative interest rates monetary policy is to force commercial banks not to deposit money with the central bank for interest, but to lend all the money, so there is news about buying a house with zero interest rate loans. Residents can buy houses with zero interest rates at least promote consumption. If everyone does not consume and changes to savings, they will fall into endless deflation and even fall into liquidity traps.
Now all countries around the world are relaxing, and Lao Chuan, the United States, has always wanted super loose, wanting 0 interest rates and QE, but with the Federal Reserve's control, it is still rhythmically loose, and Europe and Japan have long been negative interest rates.
The world's first negative interest rate mortgage loan
The hottest in the real estate circle recently is the housing loan interest rate
Many people are worried about China's mortgage interest, and major websites and circles of friends have been flooded with countless views. There are two different ways, and Denmark has already started negative mortgage interest rates - a mortgage of 10,000 yuan is only required to repay 9,950 yuan! ! !
The first country in the world to implement negative interest rate mortgages has emerged. It is really not a dream to buy a house worth 4.08 million yuan for 1.91 million yuan.
The incident happened at the beginning of the month. On August 5, Jyske Bank, the third largest bank in Denmark, began to provide lenders with ten-year interest-subsidized housing loans with an annual interest rate of 0.5%. This is the first negative interest-subsidized housing loan business in the global financial industry.
What is an interest-subsidized housing loan? professional explanation refers to a bank special loan used for home purchase and subsidizes its interest expenses by the state or bank. It is a preferential loan to encourage locals to buy property. To put it simply, it is a "negative interest rate loan". You don't have to pay interest on your loan to the bank, but the bank helps you repay the loan together.
is calculated based on the average house price of Copenhagen in the capital of Denmark, 4279 euros (approximately 34,000 yuan) per square meter, and a loan of up to 80% can be borrowed. I bought a property of 120 square meters for about 4.08 million, of which 816,000 were paid by myself, and the remaining 3.264 million were all loaned from the bank. After 10 years of repayment, the bank paid 81,600 yuan. From this, considering Copenhagen's average rental return rate of 4.84%, it can get at least 1.975 million yuan in 10 years. That is to say, if you use a down payment of 816,000 yuan, then you will repay an average of 110,000 yuan every year. If the loan is paid 10 years later, it means that you can buy a house worth 4.08 million yuan with 1.916 million yuan. Of course, this is just a theoretical calculation value, and it does not consider possible losses such as house depreciation and vacancy, but no matter how you look at it, it is a good deal.
Why do banks in Denmark implement negative mortgage interest rates? 's intention is actually very obvious: to stimulate the property market and support the economy. Negative interest rates mean that banks lend money to lenders, and lenders pay less money than borrowed.
According to statistics, as of August 15, the global negative interest rate bond scale has exceeded US$15 trillion, setting a historical record.
What should we do in our country?
What is the purpose of the negative interest rate of mortgage loans in Denmark?
stimulates the market demand for real estate, uses demand to drive housing prices, and then drives supply, leverages capital flows, and boosts the economy.
Turning to look at China, on September 6, the People's Bank of China announced that it would comprehensively lower the deposit reserve ratio of in financial institutions by 70.5 percentage points on September 16; an additional targeted deposit reserve ratio of 1 percentage point for urban commercial banks that operate only in provincial administrative regions will be reduced by 1 percentage point, and it will be implemented in two installments on October 15 and November 15, with a reduction of 0.5 percentage points each time.
This is not good news, and it means that deposit interest rate returns will also decline!
The lowering of the deposit reserve ratio is positively related to the lowering of the deposit interest rate. People deposit money into commercial banks and get the interest corresponding to the deposit interest rate; commercial banks then deposit part of the money into Central Bank to get the interest corresponding to the deposit reserve ratio. The reduction in deposit reserves means that deposit interest rates will also be lowered relative to them!
Due to the rapid development of China's economy, the current deposit interest rate is still above 0, current terms are 0.3, and 1.75% for one year. However, it is getting lower and lower, gradually approaching zero. One day, you will take money to deposit money in the bank, and everyone will be accustomed to negative interest rates.
How to protect wealth
The rich generation gradually inherits from the rich second generation
The "first generation" among high-net-worth customers is the time period when the young and prosperous customers are strong and wealth accumulation is a lot. At the same time, it is also the time when their children are gradually growing up and taking over. In the next ten years, the "rich second generation" will take over one after another, and the "rich first generation" demand for wealth inheritance is increasing. The family inheritance of Chinese rich people will be a huge incremental market.
Overseas insurance configuration is no longer just a matter of going to Hong Kong to buy a major disease or annuity insurance. Professional overseas insurance planning is a financial tool for asset preservation. It can not only provide positive and stable US cash flow, make future children's education and pension more secure, but also make the US dollar not panic.
Nowadays, more and more high net worth are planning to use overseas insurance and overseas insurance trusts to carry out multi-generation wealth inheritance planning and wealth distribution financial plans. The "three guarantees" characteristics of overseas insurance: the confidentiality, asset security, and investment protection of the plan are playing a greater role in practice. From going to Hong Kong to purchasing insurance policies in the United States, from life protection to wealth inheritance insurance plans, overseas insurance is undoubtedly a great trick for high-net-worth individuals to go overseas assets.
written at the end
Different assets under different economic cycles will be very different
The industry still has controversy over whether negative interest rates will become the norm, but the phenomenon of negative interest rates itself, which is taking a big step from theory to reality, is enough to remind us of the importance of allocation. Different assets under different economic cycles will perform very differently; we need to pay attention to the macroeconomic cycle and make asset allocation between different types of assets.
Hong Kong insurance, US dollar insurance policy, return 6%+, which is a good way to protect wealth!
Source: Network
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