This is a question that may become very real in the future, if interest rates rise.
Just say if the market does what everyone has been speculating. That is that interest rates rise and Property prices fall.
What scenario’s would come about.
– Would this be a period where Landlord’s will be forced to Sell in order and to cut their loss’s.
– Try and pay the increased mortgage themselves
or
– Raise Rent to cope with higher mortgage repayemnts.Further to this what would be a usual reason rent SHOULD go up…inflation etc.????
Any comments on this would be appricated. I had a long convo with a bloke at work out various outcomes. Relating to Market prices dropping, Property being to expensive to buy. Rent rising due to high Mortgage repayments
Looking forward to your responses.
Cheers,
Teylu“Has anything you’ve done, made your life Better?”
(American History X)You really don’t have much say over how much rent you can charge Teylu, as it has to be driven by market forces, basically supply and demand. Supposedly rents should go up when interest goes up, only because renters can’t afford to buy, and have to rent longer. If there’s a glut of cheaper properties on the market though, (owing to investors trying to bail out) then this may reverse that a bit. Who knows?! You have to go with market rent though. One week without rent makes up for a lot of weeks worth of $10/ week extra you tried to charge.
JimThanks for that Doogs.
I wasn’t really sure on what sets the rent and what brings about increases.
Your answer has made the whole thing a bit clearer for me.
The thing with rent that has always spun me out is where in on e region a house may be valued at $375,000 and charge rent of say $150. But in a another region a house may pay the same rent but get a house located worse, smaller, with less rooms. I understand it is a supply and demand thing but on the surface it looks wrong to me anyway.
Cheers,
Teylu“Has anything you’ve done, made your life Better?”
(American History X)
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