Make Some Money

As the interest rates go up do property investors still buy more investment properties or do they hold off?

As an investor myself I have to ask myself the question “should I still buy more?”. Well my answer is “Yes, of Course!” but i have to be more cautious as less deals stack up with higher interest rates.

most all the mortgage lenders have strict criteria about monthly rents needing to be about 120% of the mortgage payments. this is to protect them from over lending making sure the rent you recieve is enough to cover the mortgage and some more. when rates were lower this criteria was easily met. as rates increase this is harder to achieve on most properties.

advantages of high interest rates

there are of course always some advantages to higher rates:
more homeowners will be overstretched and may struggle with payments.
investors in a good position will be able to help these homeowners out with sell and rent back arrangements
confidence in the market may also be affected as less people can afford to buy.
this only leaves more room for cheeky offers from investors.

keep buying, speculate to accumulate!

I will definitely still be buying more properties, but i will be more careful with picking bargains.
this week i have completed on 2 purchases further adding to my portfolio and my passive income from property.

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