Hello,
I am a bit concern about that, one thing for sure they will go up and then people who have just started will be in trouble.
Of course people like Steve will be much flexible to cope with such event.
What do you think?
I have been reading here that each property don’t make that much profit may be $30 to $50 a week which could be very easily eaten up by higher interest and even become a negative one.I would love to here what do you think about that.
Maggie
hi maggie
i don’t beleive interest rates will move up for the forseeable future. it would take a dramatic change in the international economic climate (improving) for us to lift rates. if it weren’t for the property boom i beleive rates would be down lower. Once the market cools rates may drop.
Having said all that i have about 1 million Debt so i’ve fixed about a third of it, just as insurance. If you want you can fix rates for 5 years at about the same rate as the standard variable rate. it good to reduce the risk thats what i’ve loved about cash positive investing it is very safe in comparison to other investments provided you buy at the right price and do you due diligence.
westan
westanI’m with westan on this one. Interest rates are used as a tool to control inflation and to restrain out of control (booming) economies.
We’re still in a low inflation environment at the moment and the international economy isn’t exactly booming so I wouldn’t expect any dramatic rises in the immediate future.
However they will inevitably rise at some time.
I remember being very pleased with the discount rate of 14.1% we got when we bought our first house.Rod.
As westan said, fix the interest rate. Problem solved.
Jam for the Great I Am!
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