Interest rates will rise. But don’t be too concerned!

“I can’t invest in property. If I do, the interest rates might go up!” Have you ever found yourself saying this? If you are holding off on starting your investment property portfolio just in case the interest rates rise, you should know this: interest rates WILL rise… and they will come down again!

Interest rates are set independently to help keep Australia’s inflation rate steady. If interest rates are going up, it means other things will too, like rents and wages. Thus, if people are unable to afford the increasing interest rates, more people will be renting, putting further demand on the rental market. As a result, rents will go up too.

Interest rate fluctuations should not be the reason you do or don’t buy a property. However, you should prioritise having a cash buffer to cover yourself should the interest rate rise. Unprepared investors may be forced to sell, while you can hold onto your property, riding the wave while the market adjusts. It’s not about buying property, it’s about buying time.

Stay tuned for more daily insights from my book, Wealth Through Property.

~Daimien Patterson

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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.