Hi all,
This may sound weird but I am actually looking forward to some interest rate rises. It has been over a year since I have purchased a property I have sold a few I have looked at NZ and USA to get my fix, but I like Australia.I feel that as interest rates rise more deals will materialize. I know there are great ways to make deals work but I like my way of finding properties that are slightly cash flow positive with a little money down or at least neutral.Are there any seasoned investors out there who are looking forward to rate rises?[cap]Martin
You might find some more motivated vendors as a result, but on the flip side there will be motivated investors like yourself….
I am not sure the great bargains will materialise as much as some might epect, if we are talking 0.25 or even 0.5% increases. Might be different if it is 1%+, although from all the commentary around this seems very unlikely.
Unless of course you are from BIS Shrapnel! Whatever happened to their predictions?(and credibility?)
Wages figures blew out in the Dec quarter. Rates may be on the rise. i would love to see a .5 to 1% rise over the next 18 months.
Originally posted by yack:Wages figures blew out in the Dec quarter. Rates may be on the rise. i would love to see a .5 to 1% rise over the next 18 months.
I was just reading about that! Here’s a link to a related news article for those who are interested:
Wage creep adds to rates chatter
http://www.abc.net.au/news/newsitems/200502/s1309121.htmI would like to see the rates up to 10%, bring it on tomorrow.
Phil
Originally posted by resiwealth:I would like to see the rates up to 10%, bring it on tomorrow.
Phil
Phil, you do realise that the housing market will most likely collapse if interest rates hit 10% tomorrow. Is this something you’ve been wishing for?
Hi O’Sienna,
Lots of people were investing even when interest rates were at 10%Could you please tell me why you think that the property market would collapse if interest rates rose to 10%Thanks[biggrin]Martin
Hi all,
I for one am not looking forward to interest rate rises, I’ve just bought another property last week AND I still remember when interest was 17% !!!!!
Vyvyen
Well if the rates rise, investers sell then rents might increase about time i say.
w
Originally posted by guzzi:Well if the rates rise, investers sell then rents might increase about time i say.
w
I’ve heard this a few times but can’t say I agree with it. With more houses for sale, prices will become more affordable and tenants will be more inclined to buy. The only way rents are going to rise significantly is if wage inflation continues, which is highly unlikely IMO.
Cheers, F.[cowboy2]
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