Does anyone have any ideas on how to cost into your positive geared profit an allowance for an interest rate hike? Interest rates will undoubtedly rise in the next 12-18 months – I am trying to work out how to account for this rise. If you are working on a small margin, an interest rate rise of 1 or 2 % may kill your profit, turning your positive geared property into a negatively geared property.If you a investing in a large sum of properties, these interest rate rises may bring you down and forced into a position to sell your portfolio. I have read the book, and maybe I have missed a part on accounting for rises in interest rates?
If anyone has any ideas or thoughts. I would like to hear them. Thankyou[
]How about locking in your interest rates if you’re worried about a rise? That way you’ll know what you’re up for for an extended period of time…
Cheers
r
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