Will Interest Rates Affect Property Investment
Property investors are wondering if there will be more rate rises this year.
Interest rates have gone up with a bit of a rush so one hopes that they may stay much the same for the rest of the year.
But how do interest rates affect property investors?
It would probably be fair to say that most property investors (because most only have 1-3 properties) do no get too excited when interest rates rise because they see more expense with their mortgage repayments, unless of course, they have fixed interest loans.
When interest rates rise purchasing property becomes less affordable and therefore more people will rent.
- The downside is this means that if less people are buying the house prices have less pressure.
- The upside is that there is more demand on the property rental market and rents increase.
The overseas share market is still very volatile and this in turn does affect the local share market. It will be interesting to see how the balance of 2010 pans out. It really is still anybody’s guess as to what is going to happen.
The news one day seems to be all doom and gloom and then the next day there is something positive coming from another country. All in all the Australian share market does not seem to bounce around as much as the Dow and for this reason we may see another interest rate rise later in the year.
Filed Under: Interest Rates
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