Hi,
The forcast shows the intesrest rate will increase to 9% next year. Is it a good time to buy my first IP now or wait untill the price drop? Any advise will be helful. Thank!!
Regards,
Daniel
It is always a good time to buy!
The Mortgage Adviser
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Essential LinksI am looking something under 400K and having 10% deposit. It make my loan to 360K and it will make a big difference for 7% to 9%. Will the price drop if the intestst rate to up to 9%? If yes then I can buy a IP with a cheaper price. Is my theory right?
As interest rates rise then prices MAY drop depending on demand and the area but that is usually the scenario but if you buy well now there isn’t likely to be any great benefit in waiting because you will also be paying higher rates. Buy now if you can find the deal amd lock in the rate (up to 5 years) if you are worried about rises.
That was a BIS Shrapnel report today forecasting those rates and has also had its detractors.
A crystal ball might help!!
markk
Happy Hunting
http://www.kentscollections.comPersonally I doubt it will go so high in such a short space of time – and don’t forget you can negotiate your rate with your lender. My interest rate is less than 7%.
If you hold off because you’re afraid it might go as high as 9% then you’ll probably never invest. Interest rates are always capable of going up or down, and even if it went down there’s no way it would stay down for the next 25 years in which your mortgage is valid.
Hi All,
Its true that interest rates may go up to 9% according to BIS. But they’re just guessing!! Lets face the facts… the big ugly four banks are letting you fixed the rates for 5 years at less than 7%, do you honestly beleive that they do that becuase they love and care about you? Chances are that rates will not exceed 7% in the next 5 years… so stay variable and buy properties now…
Happy Buying!
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